Continuing to examine and hold a lively discussion of the Northern Virginia Real Estate market.
Please post your local house search updates, MLS finds, on-topic ideas, and links here.
http://franklymls.com/DC7456464listed for 255K, sells for 278Kbut was assesed at 483KSo, it went 8% over list (BPO)but for 32% below assesed whichi guess was prior sales price.It seems like the DC prices arefinally catching up.
cherylI don't want to argue law with you, you are a lawyer and I'm not, but it seems your definition of legal standing is incorrect in a mortgage foreclosure case.It seems to me that a Plaintiff (Servicer, Banker) needs to prove their standing and to demonstrate that they have rights to proceed in a case. The defendant merely needs to demonstrate the plaintiff lacks standing.So while homedebtors are not supposed to stop paying their mortgages, they could argue"Because the mortgage has been resold, I don't know who to pay,Countrywide no longer exists, and as such I am escrowing my paymentsuntil i have proof. I could easily pay 30 years to some entity which lacks standing to release my lien"It's a classic defensive argument.personally i think every MERS mortgage should be sold to FHA for 70 cents on the dollar and then FHA cane xert sovereign immunity. FHA says "We own all the mortgages, we bought them, we are the king, wewill get paid, we will issue title,"
http://franklymls.com/DC7421448The assessed price was 443K,sold for 422K, list was 399K
Pat,I understand your argument and it may win out. If one can't show a legal interest, there is no standing.This is why I like VA landlord-tenant law. The tenant has to escrow rent into the Court while the matter is pending.The same could be argued for legal ownership of the debt - the proceeds of a default foreclosure could be escrowed if there is a dispute as to the legal beneficiary.Monies are impleaded everyday. Why should a deadbeat stay in a house simply because there may be a question as to the owner of the mortgage?In the rare event that a debtor has not breached, remedies are available.
per Payscale Index (curtesy of Aol Jobs) D.C. is third in the Nation for pay increases.
Baltimore is number one and we are number 3 in salary growth. I'd say our region is tops.
FWIW: Chart, "where is it safe to buy?"http://www.smartmoney.com/tools/worksheets/?story=smartmoneymarket101115
wow, ~10% off $800K house with DOM 3 in Waverly Hills (howdy Tom!)
Hmm, MM, you don't suppose that the dual agent had anything to do with that, do you?Cute little house.
MM-The house is also only ~45% above the price it sold for in mid 2001.
Ok, so one so inclined could find a lot of problems with this video, but I found it pretty amusing:(it is on the fed)http://www.youtube.com/watch?v=PTUY16CkS-k&feature=player_embedded
Leroy-I actually was about to post the same video :) I disagree with almost everything said in the video, but I do find it humorous and a fun take on why people are against QE2.The two most glaring errors are that there is currently a lot of inflation and the assumption that deflation is good. Falling prices are only useful if you don't have falling wages, but unfortunately falling prices usually mean layoffs and lower wages. Either way its a funny video.
Ace,Ha! more reason to not use the 'middle man!'housebuyer,might they have 'overpaid' a bit in '01? (still a great ROI)date / sales price / tax value11/12/2010 $725,000 $610,800 6/29/2001 $499,000 $274,40010/1/1997 $185,000 $185,400
http://www.bloomberg.com/news/2010-11-17/home-ownership-gets-harder-for-americans-as-lenders-restrict-fha-mortgages.html"Home Ownership Gets Tougher on Restricted FHA Mortgages"
MM-That is definitely possible. Seeing the place looks pretty nice I had just assumed that all of the renovations were done between the 1997 and 2001 sales. This obviously would help account for some of the increase, but you are probably right that the person overpaid in 2001.
Contrarian -I find myself bemused by your link, as Prince George's County has been deservedly infamous for intrinsically ingrained corruption and graft at all levels ever since I moved into the area some 30 years ago. (And before that too, I am sure)As Renault said in Casablanca"I am shocked, shocked ..."
http://franklymls.com/DC7348394assesed at 309K, listd at 175K, went U/C for under 134K
http://franklymls.com/DC7434061assessed at 405K, sells at 180K.Hey, DC Real Estate only appreciates.
Sorry, Contrarian, now that I double-check your link I find it was regarding Prince William County, not Prince George.I admit to a certain frisson of Schadenfreude with respect to our neighboring county across the water. I suppose that makes me a bad person ....
c, you have a way with words! And that "frisson of Schadenfreude" sounds like a drink one might order at the Ritz...
Harriet,The link to NVAR Monthly Reports on the home page does not work anymore. I last visited there less than a month ago. I guess it's taken down recently?
HB LeroyThe little animation is funny, but, there are points it's making that deserve discussion.1) Inflation as measured by the CPI is a funny thing. The biggest part of the CPI is "Owners Equivalent Rent" OER. It views the housing component not as what a spectrum of people pay for housing but what the equivalent rent would be. So it's not your mortgage it's the equivalent rent of the property.It doesn't capture maintenance, improvements, etc..What throws that measure off is that rents have been very flat for a decade and even declined whilethe price of housing shot up.meanwhile food and energy have bounced all over the place andbeen showing up to people.So while CPI is flat, out of pocket expenses are rising.
Pat-There are other parts of the CPI basket that measure the maintenance aspects of housing. I know people claim food is going up, but it really hasn't gone up much. People just notice prices that are going up and don't notice the items where prices went down (particularly eating out). Oil/gasoline is up substantially, but electricity and natural gas are flat to down. I agree housing is difficult to account for price changes and OER is not a great metric. The problem is that they want to reduce the volatility of housing and historically rents are less volatile than prices and will over the long run go up at the same rate. Also if you look nationally at the price of a mortgage (interest rate & house price) you will see that current prices are basically the same as they were in 2000. House prices are up ~50% but mortgage rates fell from 8% to 4.5%. The CPI claims rents were up 30% over this time frame. So you can see the difficulty of picking what metric to use OER (basically rents) are up ~30%, house prices are up 50%, but a mortgage payment is up ~0%. All three of these metrics are reasonable, so I think the government took the metric that moves the least.
Pat - There is a bit more that the average person does not know about the CPI - in that a number of manipulations are performed in order to keep the CPI well below what it should be - as it is currently understated by approximately 7%. Some people are aware that what is often stated is "core CPI" which deletes energy and food prices from consideration. These are key inflation factors but are very volatile. Not so many people are aware of the weighting adjustments (another old modeling trick) or the concept of hedonic adjustments, which skew it further still.If interested, I recommend you read the excellent primer at CFI explained by Shadowstats. There is a lot of good economic information at that site. For example, did you know the current national unemployment rate is actually over 22.5% if measured using historical (non-adjusted) measurement methods?
housebuyer said...Also if you look nationally at the price of a mortgage (interest rate & house price) you will see that current prices are basically the same as they were in 2000. House prices are up ~50% but mortgage rates fell from 8% to 4.5%.So what you're saying is that in 10 more years if the interest rate is back to 8% that housing prices should go back down to compensate? I feel like you can't use the first argument without also supporting the second statement.
JeremyDon't forget the impact removal of the mortgage interest tax deduction will have on prices if passed by Congress.
Jeremy-No I am saying that if there was 2% inflation for 20 years from 2000-2020 you would expect housing prices to go up 1.02^20 = ~49%. So if mortgages go back to 8% I would expect housing to stay fairly flat over the next decade. If this happens housing prices would have gone up roughly the same amount as inflation.If interest rates went up to 8% now I do think prices would fall. Probably not all the way to where they should, but that is because house prices are sticky on the downside.C-I disagree with shadow stats that weightings shouldn't be changed. Over time peoples preferences change and they buy more or less of items. Also people generally avoid buying goods whose price has risen dramatically so changing weightings allows BLS to adjust for this. I do agree you can make an argument why weightings shouldn't change, but I am not convinced one way is more or less accurate they just tell different stories.
I use measurement weightings myeelf for professional purposes. Weights have their uses depending upon their application. The question is how and to what purpose. To more accurately assess the data? Or to obscure it for political reasons? Not being a staff member of the Bureau of Labor Statistics I can't say, but I tend to take a skeptical/cynical view.
C-I agree it would be good to know if they have an agenda and if so what it is. Although seeing that the rules haven't changed much during liberal and conservative leadership I don't think they have much of an agenda, but could be wrong.
http://franklymls.com/DC7454631assessed at 433K, sells for 255K3BR2BA needs work but it's a decent place.
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