Steve Dean

The $5,000 First Time DC Homebuyer Tax Credit was signed into law when the President signed the "Emergency Economic Stabilization Act of 2008."

The tax credits are retroactive to Dec. 31, 2007 and will be good through Dec. 31, 2009. Individuals and families buying a home in the District for the first time are eligible even if they have owned elsewhere but not in the city. The $5,000 homebuyer incentive has been credited with stabilizing the District's population and encouraging renters to buy here instead of moving elsewhere in the region, and with shoring up the District's economy, which traditionally has been considered particularly unfriendly to small businesses. The tax credits expired last year and Congresswoman Eleanor Holmes Norton worked hard to get them renewed.

 

 

 

 

Our broker recently shared some myths and facts about foreclosures, housing inventory, and the local economy.

 

FORECLOSURES

Mainstream Media Myth: Everybody is losing their house.

Facts:    1) The US average foreclosure rate is 2.47%. 

              2) All of our markets (VA, MD, DC) have a foreclosure rate of less than two percent. 

              3) Foreclosure rates are moderate. Virginia ranks about 24th in foreclosure rates nationwide. 

              4) Only 7% of home loans in Virginia are sub-prime. Over half of Virginia foreclosures are on sub-prime loans. 

 

INVENTORY

Mainstream Media Myth: Everybody has a house to sell.

Facts:  5) New home inventory topped out during the second quarter of 2006 and is thirty percent less today than it was then.

            6) The National Association of Realtors Pending Home Sales Index, based on contracts signed in June, rose 7.4 percent in August to 93.4 from an upwardly revised index of 87.0 in July. The August reading was 8.8 percent higher than a year earlier, and the highest level since 101.4 in June 2007. Economists polled by Reuters ahead of the report were expecting pending home sales to drop by 1.8 percent. 

             7) Nationally, home sales were up 3.1 percent in August over July. Single family prices were up 1.1 percent in June from May.

             8) Virginia second quarter (08) sales were up 48% over the first quarter (08).

             9) Virginia median home prices were up six percent in the second quarter (08).

             10) Single family inventory fell in Washington DC about 7.5% from April 08 to August 08.

             11) Single family inventory fell in Montgomery County, MD about 7.5% from April 08 to August 08.

             12) Sales are up and prices are down in many of our markets:   

                2nd Qtr 08 vs 2nd Qtr 07

                MLS Area                 Average Price     Sales     Pending Sales 

                Dulles                       -18%                   + 7%      + 37% 

                NVAR                     -14%                    -7%       + 10% 

                Prince William         -34%                   + 72%    + 129% 

                Richmond Metro      -2%                     -23%      -26% 

                Roanoke Valley        0 %                    -22%        N/A 

                Hampton Roads       -2%                     -21%     -15% 

 

ECONOMY

Mainstream Media Myth: The sky is falling with no end in sight.

Facts:  13) The DC metro area added 35,000+ jobs from July 2007 to July 2008. This ranked fourth out of the fifteen largest metro areas. Nine areas had job loss or little noticeable gain.

            14) The DC metro area has the lowest unemployment rate out of the fifteen largest metro areas and about two percentage points less than the national average.

            15) Virginia is expected to add 19,000 jobs in 2008.

            16) The average price of a home in Maryland has grown 9.3% since 1999.

            17) People who purchased homes six years ago have, on average, seen the value of their homes rise over 24 percent, despite recent price declines.

 

HOME OWNERSHIP

Mainstream Media Myth: Now is a terrible time to buy.

Facts: 18) On Tuesday, September 30, Virginia Governor Tim Kaine called it a good time to buy a home in Virginia. 

           19) The average price of a home in Maryland has grown 9.3% since 1999. 

           20) The average renter's net worth: $4,800. The average homeowner's net worth: $171,000 

           21) In a recent survey, 8 out of 10 economists stated they believed housing prices would be higher five years from now. 

           22) An overwhelming majority of economists surveyed - by a better than 5-to-1 ratio - agreed with the statement, "A person can increase their long-term wealth by purchasing a house rather than renting." 

           23) Over the past 30 years, home values have risen more than 6 percent annually. 

           24) People who purchased homes six years ago have, on average, seen the value of their homes rise over 24 percent, despite recent price declines. 

           25) On average, the value of a home doubles nearly every ten years. 

           26) 60 percent of the average homeowner's wealth comes from their home's equity. 

           27) Homeowners benefit from the power of leverage. At an annual appreciation rate of 5 percent, a 10 percent down payment on a home will return 94 percent after three years. After five years, it increases to 225 percent. After ten, 623 percent. 

 

 

 

Washington, D.C., signed a land disposition agreement Tuesday with Hoffman-Struever Waterfront LLC, allowing D.C. to transfer several parcels along the Southwest waterfront to the development team.

D.C.-based PN Hoffman Inc. and Baltimore-based Struever Bros. Eccles & Rouse plan to convert the 26-acre waterfront into a $1.5 billion mixed-use mecca, which will include more than 2 million square feet of public parks, plazas and open green space.

Read about it in the Baltimore Business Journal.

 

 

 

(Washington, DC - September 2008) – Steve Dean & Eddie Rangel with RE/MAX Allegiance, ranked 6th overall in the Washington, DC for awardable commissions year-to-date in 2008. 

“Without a doubt, your contribution to RE/MAX International’s record-breaking success is recognized and admired throughout the Region,” said Kerron Stokes, Regional Vice President of RE/MAX Central Atlantic Region, upon issuing the award. “Your outstanding achievement serves as a powerful model of professionalism for each and every Sales Associate on the RE/MAX team.”

    "The DC real estate market this year has more distressed property and problematic transactions than in past years," said Steve Dean. "We're happy that we've been able to use our experience to grow our practice during difficult times."

    Steve Dean & Eddie Rangel are well versed professionals with extensive experience in co-operative and condominium sales. To learn more about Steve & Eddie visit their website: www.myDCagent.com

    RE/MAX has over 110,000 agents worldwide and continues to lead the industry in top markets with cutting-edge technologies like the comprehensive property search engine on www.remax.com and the RE/MAX Satellite Network (RSN), that provides Associates with award-winning programming, coaching and training in the convenience of their offices or homes. 

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About RE/MAX 

RE/MAX was founded in 1973 in Denver, Colorado by Dave and Gail Liniger. It has grown to a global network of over 110,000 Sales Associates in more than 65 countries. No one sells more real estate than RE/MAX. Nearly all home listings can be found at www.remax.com. 
RE/MAX is proud to help raise millions of dollars and support charitable organizations like, Susan G. Komen Breast Cancer Survivor Recognition Program, Children’s Miracle Network and The Sentinels of Freedom Foundation.

Despite all the negative press these days about obtaining financing, The Portals III just obtained $212 million worth of financing.