kirsten prindle

REALTOR Daily Real Estate News | January 22, 2009 |

Washington, D.C. Tops List for Real Estate Buys

The nation's capital leapfrogged London this year as the world's best city for real estate investment. With the federal government on a path to grow bigger and increase spending, the new programs will need offices and its employees will need homes.

Forbes magazine turned to the Association of Foreign Investors in Real Estate for the list of where its member investors are finding the best opportunities around the world.

In normal times, financial capitals, New York City and London, vie for first place. Today, both may even be a little grateful to come in second or third. "There used to be a rivalry between New York and London," says Kenneth Patton, divisional dean of the New York University Schack Institute of Real Estate. "The subject has shifted to the fact that we're both in the same lifeboat, and maybe it's leaking."

Here is the list of the world's 10 best place for real estate buys:

• Washington, DC
• London
• New York City
• Tokyo
• Shanghai
• San Francisco
• Los Angeles
• Paris
• Houston
• Singapore

Source: Forbes, Matt Woolsey (01/21/2009)

Notes from the Greater Washington Economic Conference

Dr. Steve Fuller, Economist at George Mason University, says "The payroll job loss is likely to go deeper and longer" perhaps 18-20 months. There are currently 13 million unemployed, and many of these people will stay unemployed because the new jobs will have different qualifications than those for the people getting laid off. He predicted oil will still be below $80 per bbl in 2011. Normally there are 5 million house sales per year (it got up to 7 million a few years ago), and we are currently around 4.5 million now. Consumer spending will be a negative 1% in 2009 vs the normal 2.5% growth per year.

The Washington economy will have a 1.5% growth in GDP vs the negative nationally due to the presence of the federal government.

Where Detroit has autos; LA, films; Houston, oil; a third of our economy is directly tied into the feds, and that component is rising.

Federal spending here will total some $135 billion in 2009. Federal procurement dollars have tripled over the last 10 years with much of the corresponding job growth going to Northern VA.

Job growth has averaged 46,500 per year since 1991 with some recent years as follows:

2003 - 56,000

2004 - 71,000

2005 - 63,000

2007 - 29,000

2008 - With one more month's numbers to come in, he thinks it will net out at 25,000

Washington is double the national job growth rate in professional and business services which have an annual salary of $75,000. Due to the region's wealth, our retail trade job growth is 3 times the national average, and other services (such as daycare, etc.) twice. Steve sees the spread between our unemployment rate and the national rate (now 3%) perhaps growing to a 4% spread.

He thinks our economy will begin to rebound the second half of 2009 with a total net new job growth of 230,300 for the region over the next 5 years as follows:

2009 - 23,700

2010 - 36,500

2011 - 42,400

2012 - 48,100

2013 - 54,000

Of these new jobs, Northern VA will have 125,900 and Suburban MD, 66,000.

Needless to say, we are very fortunate to be living and working in this area for a number of reasons.

**Reprinted with permission from Long & Foster News

Because I hail from Massachusetts, I can't help but think of my "native homeland" when autumn hits. That's why I selected West Market in Reston as my September/October Featured Community -- the buildings remind me of Boston!

West Market is actually comprised of several different areas built by several different builders, but the West Market areas I'm focusing on are the ones with homes built by Miller & Smith - the architecture and quality is outstanding, and again - perhaps you've been by the neighborhood and noticed - it looks like Boston...my favorite city!

These townhomes are located on Market Street, Kinsley Place, Crescent Park Drive, and Chancery Station Circle. They were built between 1998 and 2000, and the community is beautiful - lush landscaping, quaint streetlights, pretty sidewalks, wrought-iron fences, exquisite facades with beautiful architectural details. All just 5-10 minutes from Dulles Airport. Most of the homes have great top-level decks...and most homes face the sunset -- perfect for relaxing ... and sundown soirees!

This neighborhood is so perfectly "walkable" I wish I lived there...

Reston Town Center is 2 blocks away, as well as a slew of businesses....

Northrop Grumman, SAIC, Reston Hospital Center, Microsoft, Accenture, and Rolls Royce's North American HQ are 1-2 blocks up the street! There are too many businesses to mention...it would be a shame not to take advantage! But...if you do need to drive to work...

• Reston Parkway is 2 blocks up the street,
• Dulles Toll Road is 2.5 blocks up the street,
• Fairfax County Parkway is less than a mile up the street.

No, you can't walk to Fenway. Sorry...

The community has a very nice clubhouse (the "West Market Club") and outdoor swimming pool, a fitness club with sauna, and is steps from the W&OD Trail. Bonus: the HOA fees are relatively low! (They vary from $100-$120 per month) This community is exciting, upscale, and -- best of all -- Bostonian. It doesn't get much cooler than that (in my humble opinion).

Recent home sales (as of September 2008) average $699,500...Average rental prices are $3000 per month.

If you'd like more detailed information about this fantastic neighborhood, or if you'd like to see one (or more!) of these fantastic homes, call/email/text me any time!

--Kirsten

www.westmarket.net