Please post your local house search updates, MLS finds, on-topic ideas, and links here.
I looked at a story about 22 miles of empty lumber transport cars in Eastern Oregon. That's a lot of empty cars. I liked the author's point about field research - when the amateur "field researchers" on the early housing bubble blogs started sharing empirical research about their regions it became obvious that a hideous national problem was developing. But the "experts" still say "hoocoodanode?"
Tuesday, August 17, 2010
Northern Virginia Bits Bucket 8/17/2010
Posted by Harriet at 6:00 AM
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11 comments:
Is it just me or is the housing start data pretty useless on a month to month basis. Calculatedrisk is saying housing starts are up 1.7% plus or minus 10%. If they can't tell me what the number is closer than 10% I am not really sure I care that they think it was slightly up.
I guess the good news is that builders continue to be rational and are building very few houses, which obviously is hurting the economy now, but is the only way for the nation to get rid of the glut in housing. Although hopefully the DC area is getting a disproportionate amount of them seeing we have a much smaller glut than most areas.
hb,
Yeah, it's just as bad if not worse than the weekly unemployment figures.
Diane Rehm on NPR (88.5, or go to http://thedianerehmshow.org/ and click on "listen") has a panel discussing housing and public policy on until 11 AM.
Sorry Ace,
I haven't been listening to the discussion. I am a firm believer in homeownership as a method of forced savings.
Some people made terrible decisions over the past few years and this has affected many of us on a short-term basis.
The long-term outlook remains good in my opinion. Between historically low interest rates and rently parity in many neighborhoods; the prospect of buying a home and eventually paying it off makes me feel better about the future prospects of owner's.
As long as RE keeps pace with, or slightly beats, inflation, RE accomplishes several societal goals.
Older generations will find it tougher and tougher to "afford" retirement. Rents (absent some catastrophic 'episode") will keep pace with wage growth and inflation.
I believe that it is better from a societal standpoint that housing costs reduce over time and locking a low-interest mortgage and sitting tight is one leg of the retirement plan. Taxes, insurance and maintenance costs will be less than renting.
Studies have shown, over and over, that retiree's tend to age in place. Programs are available in all local jurisdictions to defer RE taxes for qualified owner's.
A recent example here is the seller that bought in the 70's in N. Arlington for 26 or 28K.
Section 8 programs often pay way more than the cost of actually buying the unit would be. The only explanantion is the dearth of LL's willing to rent to this group of people.
I've had some bad experiences with Section 8 and the problem is not the rent. Perhaps if some had an ownership interest things may be different - doutful, but there are some candidates.
What many here fail to consider is that there are many blue-collar, hardworking folks that can afford to own and want to own. Surely something can be done, at a much lower cost to taxpayer's, to put these people in homes.
I would sleep alot better knowing that the hard working lower-end have a home which they can afford, take pride in AND pay-off.
maybe i should flip this REO Ace posted before... price just went down $45K or 8%.
kitchen actually doesn't look half bad, perhaps $15K to $20K of upgrade will do. both bathrooms need redone, so that's another $30K?
lets say total cost is $600K when all is said and done, and then price it at $650K to rip $40K+ profit and use it as the down payment.
i'll make sure i put cherry cabinets in the kitchen...
MM-
Is does the 600K include holding costs and realtor fees. If so I think you are being ambitious about the cost of some of the fixes. If not then you would not make any profit. Although you could probably get the bank lower, which would obviously help.
MM,
Looks like a fun project. What is the "renovated" price? Also, perfectly appropriate for owner-occ. Some people enjoy the possibilities and other's insist on "move-in".
MM,
It's a fairly decent place but I'm still skeptical it's worth $515k plus upgrades. It's close though to what I would consider fair. It's not walking distance to either Ballston or Falls Church metro. On the other hand, north of Wilson Blvd. makes it an easier commuting start than south of Wilson Blvd for west bound opposite, commuters.
Given that the 3rd bedroom was shoe horned into the attic I think I'd go as high as $450k in an as-is state. At $450k, with a 10-15% down payment and some modest remodeling it's pretty close to cash flow for renting. (~$1k/room in that area.)
My $0.02
MM, I predict it will go quickly at that price. Not saying that's a good or a bad thing.
Do you think it could be a tear-down prospect?
Ace,
I think it won't be a tear-down -- only because the lot across the street has been sitting at $500K since 5/22/2010, and to my untrained eyes the lots are similar.
but yes I expect it to go UC soon - or I'd declare North Arlington is toast.
cheryl
the key is affordable property for the workers and that means small lots, high density and cheap apartments.
look at older houses, very small.
my moms place from 39, 6000 SF lot in bethesda, 2.5/1.5 if they made more of these in duplexes in PG.
The greenbelt coop is very cheap
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