Realty Insider Blog

It seems investors and homeowners are finally realizing the value of Idylwood Towers this year. There has been 6 homes sold in the first 5 months of 2009. The lowest price was a 1br/1ba at $190,000. The maximum price was an updated 3br/2ba property at $315,000.

The average price YTD for a 1 bedroom unit is $190,000. The average price YTD for a 2 bedroom unit is $206,250. As mentioned earlier, a 3 bedroom unit sold for $315,000.

Homes on average sell for 89.8% of the original list price. They sell for 96.7% of the final list price. So, if you are looking to purchase in Idylwood Towers it is important that you work with a Realtor that knows the buildings and can help you determine if the asking price is reasonable. 

Idylwood Towers Sold YTD: http://matrix.mris.com/Matrix/Public/Email.aspx?ID=31189727011

If we look at the number of pending home sales at Idylwood Towers as of 06/03/2009, we get a number of 4. Two of those are 1 bedroom units and two are 2 bedroom units. One of those appears to be a short sale.

Three homes are currently available for sale in Idylwood Towers. They are all 1-bedrooms ranging in price from $165,000 to $225,000. If you would like the current list of homes for sale, please email me.

To get a better understanding of the overall price curve in the neighborhood we can take a look at the sales history of the various models. As there has been few sales of the 1 and 3 bedroom units, the price trend is probably most accurate for the 2 bedroom units.  

As can be seen from the above graph, the average sales price is still trending downwards and are back to pre 2004 levels. The three bedroom model seems to keep its value well but will need more sales to see what the long-term difference is in price between that and e.g. the 2 bedrooms. There is interest in units for sale in Idylwood Towers and reasonably priced units do sell quickly.

The current market situation could change if there are a lot of foreclosures coming up, so looking at the upcoming foreclosures on Realist, I found 1 pre-foreclosure, 0 upcoming auctions and 0 bank owned properties. Some bank owned properties have already been listed and sold over the last few years. So, there does not seem to be a flood of foreclosed on units coming up over the next few months.

Moving on to rentals, the prices have come down a bit from last year. 4 properties rented so far this year. There are currently 6 properties listed for rent ranging from $1,200 for a junior 1br/1ba to $1,850 for a 3br/2ba. As can be seen on the below graph, the rents have declined for all the models (remains to be seen for the Jr 1br.) Rents are typically a bit higher in the summer so we may see a bump in the average by the time we get to the end of the year.

For investors the GRM is flattening out. Even though prices have kept falling the rents have also fallen. 

Idylwood Towers is a great place to call home and the prices are now lower than what they have been for a long time. Coupled with the low interest rates and the potential to qualify for the $8,000 tax credit this is an excellent time to buy. If you would like to discuss selling or purchasing in Idylwood Towers please give me a call.

Are Andresen
Broker, Soldsense Realty LLC
"Your sixth sense in real estate"

There has been a reasonable market activity at the Gates of McLean this year. It seems investors and homeowners are realizing the value of the community - on the last few homes I inquired or put in offers on we have competed with multiple offers with the sales price ending up at or above asking price. There has been 7 homes sold in the first 5 months of the year. The lowest price was a 1br/1ba at $195,000. The max price was a 3br/2ba property with granite countertops at $354,750.

The average price YTD for a 1 bedroom unit is $207,500. The average price YTD for a 2 bedroom unit is $301,600. As mentioned earlier, one 3 bedroom unit sold for $354,750.

Homes on average sell for 91.1% of the original list price. They sell for 94.2% of the final list price. So, if you are looking to purchase in Gates of McLean, it seems that you will be able to get a slight break in price. However, the market has picked up lately and unless you are willing to purchase one of the units up against I-495, you may have to pay closer to the asking price than the statistics indicate. 

Gates of McLean Sold YTD: http://matrix.mris.com/Matrix/Public/Email.aspx?ID=31159444269

If we look at the number of pending home sales at the Gates of Mclean as of 06/02/2009, we get a number of 3. Two of those are 1 bedroom units in the low $200's. One of those appears to be a short sale.

Four homes are currently available for sale at the Gates of McLean. They are two 1-bedrooms at $240,000 and two 2-bedrooms in the low $300's. If you would like the current list of homes for sale, please email me.

To get a better understanding of the overall price curve in the neighborhood we'll need to do some comparison on a model basis. As there has been two sales of the Danielle model(1br) and two sales of the Dalton model (2br) I put together a graph showing those sales in the neighborhood over the last couple of years. It makes it much easier to see what the trend is as the mix of homes sold continuously changes skewing the minimum, maximum and average sales price. I left out the 3 bedroom model as the price has varied a lot on that model. 

As can be seen from the above graph, the average sales price is trending downwards and are back to pre 2004 levels. One bedroom models could be purchased from the developer from the low $200's back in 2003, so many are upside down at this point. There is interest in the Gates of McLean homes for sale and reasonably priced units away from I-495 do sell quickly and with multiple offers.

The current market situation could change if there are a lot of foreclosures coming up, so looking at the upcoming foreclosures on Realist, I found 0 pre-foreclosure, 3 upcoming auctions and 4 bank owned properties. Some of the bank owned properties have already been listed or are already under contract/sold. So, there does not seem to be a flood of foreclosed on units coming up over the next few months.

Moving on to rentals, the prices have remained pretty steady, especially for 2 bedroom units. 20 properties rented so far this year. There are currently 16 properties listed for rent ranging from $1,200 for a 1br/1ba to $2,400 for a 3br/2ba. As can be seen on the below graph, the rents for one bedrooms has declined while it has increased slightly for 2 bedroom units. Rents are typically a bit higher in the summer so we may see a bump in the average by the time we get to the end of the year. Due to the large amount of non-owner occupied units (likely more than 50%) there will continue to be a competitive rental market at the Gates.

For investors the GRM is getting better and better for 2 bedroom units. Due to the 1 bedroom falling rents the GRM is about unchanged from last year despite falling prices.

Gates of McLean is a great neighborhood and the prices are now often lower than what the developer sold them for back in 2003. Coupled with the low interest rates and the potential to qualify for the $8,000 tax credit this is an excellent time to buy. If you would like to discuss selling or purchasing at the Gates of McLean please give me a call.

Are Andresen
Broker, Soldsense Realty LLC
"Your sixth sense in real estate"

There has been reasonable activity in Pimmit Hills this year. It seems like investors and homeowners are realizing the value of the community. The last few offers I made on Pimmit Hills homes competed with multiple offers from other competing agents with the sales price ending up at or above asking price.  There have been 16 homes sold in the first 5 months of the year. The lowest price was a 3br/1ba rambler at $279,900. The max price was a 5br/4.5ba new construction foreclosure at $720,000. The average price for all homes sold was $374,646.

Homes on average sell for 94% of the original list price. They sell for 99.3% of the final list price. So, if you are looking to purchase in Pimmit Hills odds are that you will be paying close to the current asking price.

Pimmit Hills Sold YTD: http://matrix.mris.com/Matrix/Public/Email.aspx?ID=31152557099

If we look at the number of pending home sales in Pimmit Hills as of 06/02/2009 we get a number of 22. This indicates quite a jump in the activity as the average closing time is in the 45 day range. 10 of these are short sales though, so the majority of these may not be closing. On the other hand the success rate for short sales seem to have gone up a bit lately.

Eleven homes are currently available for sale in Pimmit Hills. Of these only three are listed below $400,000. If you would like the current list of homes for sale, please email me.

To get a better understanding of the overall price curve in the neighborhood we need to compare apples to apples. I have therefore tracked sales of 3br/1ba 1 level ramblers in the neighborhood over the last couple of years. It makes it much easier to see what the trend is as the mix of homes sold continuously changes skewing the min, max and average sales price.

As can be seen from the above graph, the average sales price is trending downwards and are back to 2003 levels. Based on the last few sales, the number of pending properties and the limited supply I do not see the prices currently going much below $300,000. Rather, if the current market conditions persist, the price should trend upwards. This could change if there are a lot of foreclosures coming up, so looking at the upcoming foreclosures on Realist I found 1 pre-foreclosure, 3 upcoming auctions and 6 bank owned properties. Most of the bank owned ones have already been listed or are already under contract/sold.

Moving on to rentals the prices have remained pretty steady. There are currently 7 properties listed for rent ranging from $1,700 for a 4br/1ba to $5,500 for a 6br/8ba(...). As can be seen on the below graph, the rents for a typical 3br/3ba 1 level rambler has remained at about $1,550. Rents are pretty seasonal so the average for the year should get back to normal when we get some good summer months in to bump the average a bit.

For investors the GRM is getting better and better. The rents may be stagnant but with the price fall the first few months this year the ratio of rents to purchase price has been getting better and better and are now back to 2002 levels.

Pimmit Hills is a great neighborhood and the prices have not been this low in many years. Coupled with the low interest rates and the potential to qualify for the $8,000 tax credit this is an excellent time to buy. If you would like to discuss selling or purchasing in Pimmit Hills please give me a call.

Are Andresen
Broker, Soldsense Realty LLC
"Your sixth sense in real estate"

Based on some websites I have run into lately, there seems to be some misunderstandings in regards to the $8,000 homebuyer credit.

The confusion may have been fuelled by Mrs. Barbara Corcoran on NBC's Weekend Today last Sunday. On the program she stated to Jenna Wolfe that the $8000 could be used as part of the down payment of a qualifying purchaser.

While creativity is all well and good, this is incorrect. You have to have closed on the home and be the new owner (or have moved into a home you are building) BEFORE you can claim the credit (see section 3 below.)

Don't mean to rehash the rules again here - plenty of places doing that already like http://www.tracyrealestateblog.com/2009/02/first-time-buyers-get-8000-tax-credit.html

But, a couple of clarifications:

1) There is NO MINIMUM DOWNPAYMENT required. In earlier versions of the bill (that was not enacted), there were provisions that a minimum of 5% down payment is required. The bill that was passed in the end did not have such a requirement. So, no problem using FHA and get the credit (after closing...)

2) It is a TAX CREDIT, not a deduction. If you don't pay any taxes and purchase a home, you can get up to $8,000 back in the form of a check. If you closed on the home before January 1, 2009 you may still qualify for the earlier $7,500 tax deferral. However, as it implies, that money has to be paid back over time.

3) The possibility of a sizable check from the United States Treasury has made some get a bit, ehm, “creative”. So, they apparently have filed their taxes, taken the deduction AND received their money BEFORE they purchase the home - even using it as a down payment. NO NO NO - YOU CANNOT DO THAT!!!! Please look at the IRS form and read the very clear instructions. From the 5405 form:

Enter the date you acquired the home. This is the date you purchased it (or the date you first occupied it if you constructed your main home).

(Yes, there are special rules that may allow you to purchase a home this year and get the deduction on your 2008 tax return...)

5) You will have to keep your home at least 3 years.

6) If you make too much money you will not qualify (if you make above $75,000 per individual/$150,000 per couple, your credit will be reduced and quickly goes to $0 as you move up the pay scale.)

There are lots of other rules and exceptions. Contact me for more details.

From The Economist Feb 21^st article title "Can't pay or won't pay?":

"Some 5M homes have entered foreclosure in the past three years. Credit Suisse estimates that over 9M more will enter the process in the next four years. (In normal times, new foreclosures run less than 1M a year.) Mr Obama predicts his plan will prevent up to 4M foreclosures. In a separate initiative, up to 5M borrowers will be able to refinance their mortgages at lower rates even if their equity is less than the 20% usually required by Fannie Mae and Freddie Mac, the now nationalized mortgage agencies.

Previous, less ambitious, efforts have flopped. George Bush's first plan aimed to help 240,000 delinquent subprime borrowers refinance their debts into government-backed fixed-rate mortgages. Only 4,000 did so. A Democrat-inspired $300 billion plan to guarantee 400,000 mortgages attracted just 517 applications, as lenders balked at the requirement that they first write down the principal. Private-sector programs have achieved higher numbers, but their success is mixed. Of 73,000 loans modified in the first quarter of last year, 45% were again delinquent eight months later."

As the article puts it later - the question is not only if borrowers can afford the payments on their mortgage - it is if they want to make the payments at all. With millions of homeowners having negative equity, and few or no ramifications for non-payment, homeowners that can afford the payments are defaulting and walking away as well (see my Buy and Bail blog entry.) A lowered credit score does not seem to be deterrent enough these days - and with a spouse there may be ways to work around the damage.

My solution is simple:
Set up a task force to prosecute criminally real estate agents, mortgage brokers, lenders and homeowners that aided in and committed loan fraud (remember those notices on the mortgage papers about it being a federal crime to lie on the application?) For people that can afford the mortgage but choose to walk away, convert the outstanding loan balance to a judgment against the person and their other possessions.  For people that were mislead, defrauded or is in a bad situation due to unforeseen circumstances, show compassion by allowing all or part of the remaining debt to be forgiven or deferred after a foreclosure or personal bankruptcy.

A bankruptcy court should be allowed to (and probably already is allowed to) discharge the remaining balance on a loan after a foreclosure if the person subsequently files for bankruptcy. The bankruptcy court can also force the sale of a home I believe. The nonsense that a bankruptcy judge should be able to write down the balance on an existing loan (and then keep the home) goes against all contractual law and what capitalism is about.

Enough nonsense - No to more bailouts and yes to larger sticks to make sure the unethical individuals among us have incentive to behave. The market will take care of the rest.  

Idylwood Towers consists of two apartment buildings with about 14 floors each. The building has concrete between the floors, and units are large compared to current building standards. Units are allowed to have their own washer and dryer. Amenities include things like landscaped grounds, tennis courts, exercise rooms, party rooms, extra storage units and a swimming pool. Parking is by permit and is located outside. Extra storage space is also available in the basement for the individual units. Both buildings have controlled access entry with a 24 hour receptionist and security guards.

Like most places in the area, the prices have kept dropping steadily over the last few years. The community still offers a great value for the size of the units and the convenient location.

At Idylwood Towers, 1 bedroom units currently rent in the $1,300-$1,500 range and 2 bedroom units rent in the $1,600-$1,800 range.

For more detailed information on each sale, please click on Sales Details 2008 for Idylwood Towers or send me an email at are@tysonsliving.com.

As you can see from the GRM graph - now is a great time to purchase investment real estate. With falling prices, stable/increasing rents and low interest rates the time is better now than in many years.

Are Andresen, Broker
Soldsense - your sixth sense in real estate

The community is gated and has well kept grounds. There is a clubhouse, exercise room, pool, walking paths, a sports court and picnic areas. The Gates of McLean consists of multiple buildings of two styles: mid-rise and garden. The mid-rise style has controlled building access, heated hallways and underground parking available (does not come with all units.) The garden-style has open hallways and there is surface parking only. There are numerous 1, 2 and 3 bedroom models available. All the units have an open floor plan with open kitchens and they typically come with a full-size washer and dryer.

In 2008, a total of 20 units were sold in the MLS. 6 units sold were one bedroom units and 14 units sold were two bedrooms units (one was a 3 br unit converted to a 2 br.) The price range of solds start at $223,000 for a 1 bedroom and ends at a 2 bedroom unit sold for $365,000.

Like most places in the area, the prices have kept dropping steadily over the last few years. The community still offers a great value for the well maintained grounds and convenient location.

At the Gates of McLean, a typical rent for a 1 bedroom unit is in the $1,300-$1,400 range, 2 bedroom  $1,650-$1,750 and 3 bedroom units at $1,900-$2,000.

For more detailed information on each sale, please click on Sales Details 2008 for Gates of McLean or send me an email at are@tysonsliving.com.

As you can see from the GRM graph - now is a great time to purchase investment real estate. With falling prices, stable/increasing rents and low interest rates the time is better now than in many years.

Are Andresen, Broker
Soldsense - your sixth sense in real estate

The Fountains at McLean consists of multiple buildings of two styles: mid-rise and garden. The mid-rise style has controlled building access and underground parking available. The garden-style has open hallways and there is surface parking only. There are numerous 1 and 2 bedroom models available.

In 2008, a total of 22 units were sold in the MLS. 15 units sold were one bedroom units and 7 units sold were two bedrooms units. The price range of solds start at $215,000 for a 1 bedroom and ends at a 2 bedroom unit sold for $357,000.

Like most places in the area, the prices have kept dropping steadily over the last few years. The community still offers a great value in an excellent location.

At the Fountains at McLean, a typical rent for a 1 bedroom unit is in the $1,200-$1,400 range and 2 bedrooms at $1,600-$1,700.

For more detailed information on each sale, please click on Sales Details 2008 for Fountains at McLean or send me an email at are@tysonsliving.com .

As you can see from the GRM graph - now is a great time to purchase investment real estate. With falling prices, stable/increasing rents and low interest rates the time is better now than in many years.

Are Andresen, Broker
Soldsense - your sixth sense in real estate

Woodburn Village was built in the late 1960's and is a garden style community. Throughout the community and nestled between the buildings are landscpaed grounds with grill and picnic areas, paly areas and walking paths. There are about 600 condominium units total. Tennis courts, basketball courts and a swimming pool.

The community has 1, 2, 3 and 4 bedroom units. The buildings are 4 stories with a common laundry room and individual storage units in the basement. The reasonable condominium fees include all utilities.

In 2008, a total of 42 units were sold in the MLS. 4 units sold were one bedroom units, 31 units sold were two bedrooms units, 5 units were three bedroom units and 2 four bedroom units sold. The price range of solds start at $118,000 for a 2 bedroom and tops out at a 4 bedroom unit sold for $265,000.

Like most places in the area, the prices have kept dropping steadily over the last few years. There were quite a few foreclosures in 2008. Due to the lower prices and the convenient location the community still offers a great value.

At Woodburn Village a typical rent for a 1 bedroom unit is in the $1,100-$1,200 range and 2 bedrooms at $1,300-$1,400.

For more detailed information on each sale, please click on Sales Details 2008 for Woodburn Village or send me an email at are@tysonsliving.com .

As you can see from the GRM graph - now is a great time to purchase investment real estate. With falling prices, stable/increasing rents and low interest rates the time is better now than in many years.

Are Andresen, Broker
Soldsense - your sixth sense in real estate

Pimmit Hills is further surrounded by popular destinations like McLean and Falls Church. Washington DC is less than 10 minutes away and Dulles airport is about 15 away via the Dulles Toll Road (Rt 267.)

Built in the 1950's, the 1,500+ single family homes typically have a quarter acre lot. Home prices range from the low $300's for a rambler with 3 bedrooms and 1 bathroom and upwards to $1M homes.

In 2008, a total of 45 homes were sold in the MLS. They took an average of 112 days to sell. The sold homes range from a 4br/1ba rambler at $281,000 to a 6,300 sq/ft, 5br/4.5ba colonial that sold for $935,000. 

Like most places in the area, the prices have dropped steadily over the last few years. The community still offers a great value in an excellent location. If you want an affordable home with a yard and want to live close to Tysons Corner, Pimmit Hills is probably your best bet.

In Pimmit Hills, typical rent for a 3br/1ba rambler is in the $1,500-$1,600 range.

For more detailed information on each sale, please click on Sales Details 2008 for Pimmit Hills or send me an email at are@tysonsliving.com.

As you can see from the GRM graph - now is a great time to purchase investment real estate. With falling prices, stable/increasing rents and low interest rates the time is better now than in many years.

Are Andresen, Broker
Soldsense - your sixth sense in real estate