Hill’s Comment:  While the recent S&P/Case-Shiller Index data reflect an overall slight increase in Washington area house prices, this goes against the nationwide trends, in which residential real estate prices dropped more than forecast in the year ended September.  Prices rose and sales volume is highest in price ranges that meet the broadest market, the lower ranges.  Upper bracket properties prices are not increasing.  There are far fewer qualified buyers for higher priced inventory, and these homes are in fact attractive because buyers are getting great value for much lower cost (i.e., more house for their money).  Prices offered are declining or these homes are lanquishing on the market.  Many experts believe pressure inevitably will continue to mount and will drive all home prices lower in the Washigton market in the future.

________________

Many sellers want to wait until the spring before putting their home on (or back on) the market. This might be for any of several reasons:

• They don’t want to be inconvenienced during the holiday season.
• They believe that they will see more potential buyers and as a result will get a higher price.
• In the northern part of the country, they might not want people walking through the snow and then into their house.
• All of the above

In a normal real estate market, this may make sense. However, this market has been anything but normal. This spring will also see some abnormalities. The biggest difference will be the direction prices will take.

In years past, the spring market would favor the seller because increased demand would outpace any increase in supply: the number of houses coming onto the market would not be as great as the number of buyers newly entering the market. In most situations, when demand is greater than supply, prices increase.

The reason this spring will be different is that the supply of homes coming to the market will be dramatically impacted by foreclosure properties being released by the banks. Many believe this increase in inventory will far outweigh buyer demand. In situations where supply is greater than demand, prices decrease.

Will This Actually Happen?
RealtyTrac, in their latest foreclosure report, explained:

U.S. foreclosure activity has been mired down  since October of last year, when the robo-signing controversy sparked a flurry  of investigations into lender foreclosure procedures and paperwork. While foreclosure activity in  September and the third quarter continued to register well below levels from a  year ago, there is evidence that this temporary downward trend is about to  change direction, with foreclosure activity slowly beginning to ramp back up.

This will impact prices.

What Do Experts Believe the Impact Will Be?
Here are the pricing projections by several major entities:

• Zillow believes we will not see a bottom in prices until the first quarter of 2012.
• Standard & Poors thinks prices will drop %5 in the next few months.
• JP Morgan Chase believes prices will depreciate 6 to 7% over the next six months.
•  Barclays says prices will fall 7% by the end of the first quarter of 2012.

Bottom Line
You may pay a hefty price for the convenience of not having your property on the market right now.

___________________________________________
F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA
W.C. & A.N. Miller Realtors, A Long & Foster Company
Exclusive Affiliate of Christie’s Great Estates, President’s Club 2009
Consultant, Luxury Real Estate, Sloans & Kenyon Auctioneers and Appraisers
4701 Sangamore Road, Bethesda, Maryland  20816
Tel: 301-229-4000  Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409 
Email:  HSlowinski@LNF.com  ·  Web Site: www.HillSlowinski.com
Weblog: http://HillSlowinskiRealEstate.com

HOMES WORTH BUYING • HOMES WORTH OWNING™

3800 Fulton Street, NW, Washington, DC  20007

MLS #DC7690818, Offered for $1,150,000

This sun-filled 1920s Federal semi-detached home has been thoughtfully updated throughout.  The complete renovation, including new windows and systems, retains many of the original architectural details with a handsome contemporary flair.  There are three bedrooms, a sitting room or den, two new full and one half bathrooms, living room, dining room, foyer, central hall, abundant closet space, chef’s kitchen, and pantry. 

The home has a graceful wrap-around tiled front and side porch, which has French doors opening to it from the living room.  The tiered rear deck overlooks a large open lawn area in the back yard.  The main level rooms include such details as crown moldings, hardwood floors, paneled and true-light glass doors, a chef’s kitchen with Sub-Zero refrigerator /freezer, Sub-Zero wine cooler, Wolf gas range and oven, Meile dishwasher, and custom glassed cabinetry in the kitchen and pantry.

The second floor bedrooms have many custom built-in closets, shelves, and storage units.  The bedrooms and sitting area have eastern and southern exposures.  The contemporary bathrooms include marble tiled walls and floors, European-styled vanities and fixtures.  The large master bath features a glassed shower.

The lower level includes a huge open basement with ample space, the laundry area with newer Whirlpool washer and dryer, and a garden supplies storage area.  There is street parking and driveway space, including a one-car garage.

The home is convenient to shopping, dining, the National Cathedral, public transportation, Georgetown, and access to downtown via Massachusetts Avenue.

For more listing information, CLICK HERE, ir Contact Hill Slowinski.

___________________________________________
F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA
W.C. & A.N. Miller Realtors, A Long & Foster Company
Exclusive Affiliate of Christie’s Great Estates, President’s Club 2009
Consultant, Luxury Real Estate, Sloans & Kenyon Auctioneers and Appraisers
4701 Sangamore Road, Bethesda, Maryland  20816
Tel: 301-229-4000  Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409 
Email:  HSlowinski@LNF.com  ·  Web Site: www.HillSlowinski.com 
Weblog: http://HillSlowinskiRealEstate.com 

HOMES WORTH BUYING • HOMES WORTH OWNING™

Hill Slowinski

Selling Clients Ask ‘What Methods Best Solicit Offers?’ 

___________________________________________
F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA
W.C. & A.N. Miller Realtors, A Long & Foster Company
Exclusive Affiliate of Christie’s Great Estates, President’s Club 2009
Consultant, Luxury Real Estate, Sloans & Kenyon Auctioneers and Appraisers
4701 Sangamore Road, Bethesda, Maryland  20816
Tel: 301-229-4000  Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409 
Email:  HSlowinski@LNF.com  ·  Web Site: www.HillSlowinski.com 
Weblog: http://HillSlowinskiRealEstate.com 

HOMES WORTH BUYING • HOMES WORTH OWNING™

$625,000 To Be Maximum Loan Amount in Much of DC Area

More buyers in high-cost areas may be motivated to purchase a home before an Oct. 1 deadline when the government plans to scale back the size of “jumbo” mortgages it guarantees in much of our real estate markets.

By Oct. 1, the maximum loan amount that Fannie Mae and Freddie Mac is set to decrease from $729,750 to $625,500.  Buyers should have ratified contracts by August 31 in order to settle by the end of September or sooner if possible.  (The change could occur before October 1.).

This might make mortgages more expensive or more difficult to get for buyers in higher cost areas such as ours.  For example, after Oct. 1, a borrower who seeks a government-backed mortgage for a $1 million property may have to come up with a $375,000 down payment instead of $270,000.

Once the current jumbo loan limit expires, lenders who want to make loans over $625,500 will have to either hold onto the mortgage themselves or find a private investor to purchase it.

___________________________________________
F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA
W.C. & A.N. Miller Realtors, A Long & Foster Company
Exclusive Affiliate of Christie’s Great Estates, President’s Club 2009
Consultant, Luxury Real Estate, Sloans & Kenyon Auctioneers and Appraisers
4701 Sangamore Road, Bethesda, Maryland  20816
Tel: 301-229-4000  Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409 
Email:  HSlowinski@LNF.com  ·  Web Site: www.HillSlowinski.com 
Weblog: http://HillSlowinskiRealEstate.com 

HOMES WORTH BUYING • HOMES WORTH OWNING™

“The Waterford”

 7220 Armat Drive, Bethesda, Maryland 20817

Offered for $1,855,000

This luxury estate residence blends classic materials in a traditionally elegant yet very practical and comfortable home.  Key features include paneled library/study, elevator, in-ground heated pool with sub-meter, new natural gas generator, and five fireplaces. 

Multiple French doors lead to sunlit patios and mature gardens, which enjoy a warm Southern exposure for outdoor living, social events, and entertainment.  The highlights of the finished ground level are a wine cellar and reception hall, bar and family room, and a large area suitable for home theater or casual entertaining. 

The property is accented by details such as lush landscaping, ornamental iron, handmade brick, a marble foyer, crystal chandeliers and sconces, gleaming refinished hardwood floors, solid wood windows and doors, and impeccably repainted interior throughout.  There are six spacious bedrooms, six full baths, and two half baths, and many characteristics that make this a special place for family and guests alike.

For the Virtual Tour, please click HERE.  Photos, floor plans, brochures, and more detailed information is available at HillSlowinski.com.

___________________________________________
F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA 
“Top 1% of Long & Foster Agents Nationwide, 2011″

W.C. & A.N. Miller Realtors, A Long & Foster Company
Exclusive Affiliate of Christie’s Great Estates

4701 Sangamore Road, Bethesda, Maryland  20816
Tel: 301-229-4000  Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409 
Email:  HSlowinski@LNF.com  ·  Web Site: www.HillSlowinski.com 
Weblog: http://HillSlowinskiRealEstate.com 

Consultant, Luxury Real Estate, Sloans & Kenyon Auctioneers and Appraisers

HOMES WORTH BUYING • HOMES WORTH OWNING™

OFFERED FOR: $595,000   MRIS #MC7577514

This home is a wonderful, warm, four-level split plus a large attic, thoughtfully updated through the years by long-time owners. 

Highlights include lots of light, an open main level floor plan, and refinished  hardwood floors throughout.  The kitchen has been renovated and provides convenient access through new Anderson French doors to the patio and a manicured back yard with garden area and new privacy fence.  Four bedrooms include master suite with grand new bathroom and glassed shower and three additoinal bedrooms and a full bath.  There is a spacious finished lower level family room with gas fireplace and hardwood floors. 

The home is in an excellent location in City of Rockville.  It is close to Metro, schools, parks, shops, dining, entertainment and theatres, bookstores, and much more in Rockville Town Center!

Walk score: 74!   See: www.walkscore.com                                    

For Virtual Tours, Details, and other listing information, see: http://www.hillslowinski.com/PropertyDetails.aspx?MlsCompanyID=2&MlsNumber=MC7577514

VoicePad: 1-240-575-1878

___________________________________________
F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA
W.C. & A.N. Miller Realtors, A Long & Foster Company
Exclusive Affiliate of Christie’s Great Estates, President’s Club 2009
Consultant, Luxury Real Estate, Sloans & Kenyon Auctioneers and Appraisers
4701 Sangamore Road, Bethesda, Maryland  20816
Tel: 301-229-4000  Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409 
Email:  HSlowinski@LNF.com  ·  Web Site: www.HillSlowinski.com 
Weblog: http://HillSlowinskiRealEstate.com 

HOMES WORTH BUYING • HOMES WORTH OWNING™

So far this year, we have seen a remarkable increase in buyer activity (see new listings below) not only in visits to Open Houses in the area but also in the number of contract contracts written on homes on the market. We are also helping clients who are listing their properties now rather than later. We are expecting higher inventories (more competition for buyers) in the next few weeks.

Last year in February, buyers were starting to feel the urgency of the looming deadline on the final homebuyer tax credit, which pulled forward demand into the early months of the year. This year, we are experiencing a more typical seasonal sales curve this year without the tax incentives.

The buying season is heating up, and I am confident that buyers and sellers on the fence may feel inspired to move with rising interest rates, increased consumer confidence, and stabilizing job reports. In fact, my office had a 15% increase in sales volume and a 9% increase in number of homes sold above year-ago levels — clearly exceeding the performance of the industry. My office is in the Top 3 of all of Long & Foster (186 offices) compared to year-ago levels, notable especially given that we are now operating without homebuyer tax incentives.

___________________________________________
F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA
W.C. & A.N. Miller Realtors, A Long & Foster Company
Exclusive Affiliate of Christie’s Great Estates, President’s Club 2009
Consultant, Luxury Real Estate, Sloans & Kenyon Auctioneers and Appraisers
4701 Sangamore Road, Bethesda, Maryland  20816
Tel: 301-229-4000  Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409 
Email:  HSlowinski@LNF.com  ·  Web Site: www.HillSlowinski.com 
Weblog: http://HillSlowinskiRealEstate.com 

HOMES WORTH BUYING • HOMES WORTH OWNING™

Low Inventory, Stable Prices, and Feeling the Worst Is Behind Us

Market Summary

The Washington, DC real estate market had an exceptional first half of 2010 with combined sales of single-family homes, condominiums, and cooperatives up 36% at the end of the second quarter.  That pace did not continue and the increase dwindled to 3% by the end of December.

The single-family market ended the year in much stronger position than the condo/co-op market with an 11% increase sales and just over 4 months worth of inventory.  Condo/co-op sales ended with a 6% loss and over 6 months of inventory.  Nevertheless, property values still managed to rise for both homes and condo-co-op units.

Overall, this was still the third consecutive year of positive sales growth, made more remarkable by the negative factors faced in the market place.

Single Family Homes

At the end of 2010, year-to-date sales of single-family homes were up 11% over the same point in 2009.  The largest year-over-year increases came in the $700,000 to $900,000 range (up 27%) and the $1 million to $1.5 million range (up 33%), and single-family gains were seen across almost all price categories.  Only the $600,000 to $700,000 and the $900,000 to $1 million ranges registered small losses — 3% and 2% respectively.

At the end of 2010, there was 4.03 months supply of single-family inventory available.  Inventory of homes was remarkably stable throughout the year, varying between a low of 2.31 months and a high of 4.26 months.  Only homes priced over $1.25 million saw a substantially higher inventory, 10 months worth, but that is not unusual for that price range.  The number of available homes typically drops at the end of the year, and a majority of these homes is likely to come back on the market in the first quarter of 2011.

Average and median prices of single-family homes rose slightly in 2010 compared to double-digit declines in 2009.  The average home price was up 2% while the median was up 3%.  With low inventories to start 2011, consistent sales numbers should provide stability or similar increases throughout 2011.

Condominiums and Cooperatives

Sales of condominium/cooperative units dropped overall by 6% by the end of 2010.  Only the highest and lowest price ranges saw double-digit increases for the year, with sales of units priced under $150,000 up 55% and units over $1 million up by 46% for 2010 over 2009.

Inventory of available condominium and co-op units fell 20% in December to the lowest point of the year.  Inventory is up 4% at the end of 2010 over 2009 with the largest increase in the $200,000 to $300,000 range while the number of units on the market between $700,000 and $1 million fell 27%.  An increase in the more affordable $200,000-300,000 range is considered a positive trend. 

At the end of 2010, there was 6.37 months of condo/co-op inventory, which establishes a market that is more in balance than being a buyer’s or seller’s market.  The spring saw this number dip as low at 3.13 months.

 Outlook

There are several local and national issues that this area will have to overcome in 2011 to continue its upward movement in sales and prices – the potential downsizing in federal employees, lack of available credit for some buyers,  reforms in Fannie Mae and Freddie Mac, and threats to the Mortgage Interest Deduction. 

Surprisingly, average and median sales prices ended the year both up by 4% in 2010 over 2009.  On paper, the condo/co-op market was spared the drop in prices that was seen on the single-family side in 2009, but the lackluster end to 2010 might be an indicator of falling condo/co-op prices to come — at least in the first half of 2011.

If some of these numbers seem disappointing, it is only because of the expectations that come with being in a very robust market like Washington, DC.  The most recent statistics from the National Association of Realtors^® show a decline in sales of 28% nationwide, 9.5 months of inventory and the prediction from many experts of worse conditions in 2011.

The fact is that in the Washington, DC market, we have started 2011 with low inventory, stable prices, and the feeling on the street that the worst is behind us. 

Adapted from “DC Housing Report” by Fred Kendrick; Data from the Greater Capital Area Association of REALTORS®

___________________________________________
F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA
W.C. & A.N. Miller Realtors, A Long & Foster Company
Exclusive Affiliate of Christie’s Great Estates, President’s Club 2009
Consultant, Luxury Real Estate, Sloans & Kenyon Auctioneers and Appraisers
4701 Sangamore Road, Bethesda, Maryland  20816
Tel: 301-229-4000  Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409 
Email:  HSlowinski@LNF.com  ·  Web Site: www.HillSlowinski.com 
Weblog: http://HillSlowinskiRealEstate.com 

HOMES WORTH BUYING • HOMES WORTH OWNING™

A Rare 1770 “Flounder” Beautifully Renovated  — SOLD!!

202 Duke Street, Alexandria, VA

OFFERED for $1,410,000

This rare 1770 freestanding brick flounder, built well back from the street and surrounded by a formal garden with potting shed and high brick walls, is a jewel of Old Town.  The two and one-half story brick home, with a rolled tin roof and beautifully renovated and restored in 1995, is one of the few remaining freestanding flounder houses in Alexandria.  It features crown moldings, paneled foyer, library with original fireplace, and a full in-law suite with separate entrance.

William Mitchell, a sea captain, built this ‘flounder’ house in 1770.  “Flounder” means that the wall that faces the neighbor’s yard has no windows; therefore, the windows are on the other side, like the eyes of a flounder.  The name is unique to Alexandria.

The property originally had a warehouse in the front yard. The practice of building rear wings was common in early America.  The house never acquired additional fronting on the street after the warehouse was demolished in 1815.  The 2½ story brick home with a rolled tin roof is one of the few remaining freestanding flounder houses in Alexandria. 

The house stood vacant for eight years in the late 1980s and early 1990s.  It was carefully restored in 1995.  Crown moldings throughout the home were duplicated using an original 18th Century piece.  Pass through the paneled foyer to the library warmed by the original fireplace.  Exit the house through the renovated kitchen and turn right in the alley to view the windowless side of the house. 

At the time of the renovation, the brick patio in the front yard, completely covered with mud and weeds, was unearthed.  The holly tree, climbing rose, large English boxwoods on the street side of the garden, the azalea bushes on the patio’s west side, and one boxwood against the house were on the property in 1995.  European hornbeams line the entry walkway to the pergola covered in wisteria and grape vines.  English boxwoods frame the brick patio and dogwood tree, and a climbing hydrangea is the focal point on the front of the house.  The potting shed was added in 2007.

Click here for the Virtual Tour

For additional details, see AX7500675 at www.HillSlowinski.com.

___________________________________________
F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA
W.C. & A.N. Miller Realtors, A Long & Foster Company
Exclusive Affiliate of Christie’s Great Estates, President’s Club 2009
Consultant, Luxury Real Estate, Sloans & Kenyon Auctioneers and Appraisers
4701 Sangamore Road, Bethesda, Maryland  20816
Tel: 301-229-4000  Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409 
Email:  HSlowinski@LNF.com  ·  Web Site: www.HillSlowinski.com 
Weblog: http://HillSlowinskiRealEstate.com 

HOMES WORTH BUYING • HOMES WORTH OWNING™

211 South Payne Street, Old Town, Alexandria, VA  22314

Offered for $875,000  

          This two-story brick Colonial Revival style detached townhouse was built in 1900, with a three-bay façade with six-over-one windows and an abbreviated classical cornice.  It is in easy walking distance to the King Street shopping and dining corridor, Metro Station, Courthouse, and Patent and Trademark office. The home underwent a thorough renovation from the ground up completed in 1995 with all new mechanical and electrical systems, new double-pane windows, and new plumbing. 

            The formal living room is anchored by an inviting clean natural gas fireplace, large side windows with southern exposures, and an elegant seating area. The living and dining rooms area have crown molding and polished wood floors. The intimate dining area leads to the open white kitchen which features a center island, gray countertops, and upgraded appliances. The attached eating space in the sun room overlooks a spacious 15′ x 15′ sun deck, enhanced with a stunning new English style square post iron trellis, private landscaped yard, and a deep inviting garden enclosure. 

            The second floor features the master bedroom which offers a large custom designed tiled master bath area, complete with separate glassed shower and whirlpool bath.  There are two additional bedrooms and one additional full bath. The well-proportioned bedrooms include plentiful closet space and large windows with sunny southern exposures

Click here for Virtual Tour

For more information, see: AX7493490  

___________________________________________
F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA
W.C. & A.N. Miller Realtors, A Long & Foster Company
Exclusive Affiliate of Christie’s Great Estates, President’s Club 2009
Consultant, Luxury Real Estate, Sloans & Kenyon Auctioneers and Appraisers
4701 Sangamore Road, Bethesda, Maryland  20816
Tel: 301-229-4000  Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409 
Email:  HSlowinski@LNF.com  ·  Web Site: www.HillSlowinski.com 
Weblog: http://HillSlowinskiRealEstate.com 

HOMES WORTH BUYING • HOMES WORTH OWNING™

Owners’ Continuing Responsibility for Snow/Ice Removal

With the arrival of Winter this coming week and the surprise snowfall we had last week, it is time to complete your winter preparations, if you have not done so already.  These are particularly important if you have a home listed for sale that is vacant or you are going to be away for part of the holidays.

A Quick Checklist:

If your listed property is vacant:

• Have someone lined up to shovel snow promptly:
  • Clear snow and ice for access from the street – driveways, paths, and walks 
  • Snow-covered and icy walks may present potential liability issues
  • Snow and ice will discourage agents with potential buyers from showing
  • Some local jurisdictions require snow removal from sidewalks within 6-24 hours

• Keep heat on to avoid freezing pipes
• Lower thermostat to 60 degrees to save on expenses
• Enlist neighbor support to contact you if anything is or appears amiss or unusual
• Arrange yard service to remove winter debris – branches, leaves, etc.
• Clear leaves from gutters now to avoid ice dams caused by heavy snows
• Have someone (in addition to your agent) stop by regularly to check on the property
• Turn off water supply to exterior faucets and stow hoses
• Contact pool service company for winterizing outdoor pools
• Turn off outdoor sprinkler and irrigation systems
• Check with your insurance carrier on vacant property coverage

If your house is occupied, you likely have already done these and more: 

• Continue maintenance of the heating system filters, vents, and ducts
• Remove and store window air conditioner units
• Prepare central air conditioning outdoor condensing units
• Check operation of fireplace dampers and check chimneys for ‘critters’
• Check and update weather stripping on doors and windows
• Insulate exposed pipes

It is the owner’s responsibility to maintain safe conditions for visitors and guests.

___________________________________________
F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA
W.C. & A.N. Miller Realtors, A Long & Foster Company
Exclusive Affiliate of Christie’s Great Estates, President’s Club 2009
Consultant, Luxury Real Estate, Sloans & Kenyon Auctioneers and Appraisers
4701 Sangamore Road, Bethesda, Maryland  20816
Tel: 301-229-4000  Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409 
Email:  HSlowinski@LNF.com  ·  Web Site: www.HillSlowinski.com 
Weblog: http://HillSlowinskiRealEstate.com 

HOMES WORTH BUYING • HOMES WORTH OWNING™

Clients are asking, “Should I put my house on the market now, or should I wait?” and “Should I buy now, or should I wait?”  What about Thanksgiving, the Holiday season, or New Year’s?  What about buyer interest and showings and open houses? Why not wait?

It’s November.  Prices have stabilized.  Inventories have come down in many areas.  Interest rates are at historic lows.  Financing has become more readily available.  Sellers planning to also buy can get more house for their money now than before.  Sellers who price not only competitively but also compellingly are successfully setting the stage for buyers to make very respectable offers.  Buyers who hesitate guessing prices will continue to fluctuate or fall may forego any perceived savings through potential increases in mortgage rates. Sellers are seeing more buyers preparing to act and ready to go. 

Even during the holidays, business does not stop and buyers continue to look.  If the house is not on the market, it is invisible to buyers.  The question should be “Why wait?”  Why delay plans and dreams when the environment is so good?  Focus on what is important to them to achieve or why they are trying to accomplish it.  If a strategy is to buy at the bottom of the market, there is no way to ‘know’ the bottom – except to have passed it and to see the upswing.

How do Realtors help clients decide?    What should clients think about?  What is their motivation to act now and not wait until Spring?  Answer: “Happy Valentine’s Day!”

To be able to say, “Happy Valentine’s Day!” in their new house or at settlement, they have to move ahead now.  That becomes their motivation.  THAT can be their goal.

Know that many factors are working in their favor.   As we learn more about our clients and their expectations, dreams, and desires, as their Realtors we will be better prepared to help them.  If they act now to buy or to sell, come February 14, they may also be able to say, “Happy Valentine’s Day!”*

*Thanks to John Dodd!

F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA 

W.C. & A.N. Miller Realtors, A Long & Foster Company
Exclusive Affiliate of Christie’s Great Estates, President’s Club 2009
Consultant, Luxury Real Estate, Sloans & Kenyon Auctioneers and Appraisers
4701 Sangamore Road, Bethesda, Maryland  20816
Tel: 301-229-4000  Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409 
Email:  HSlowinski@LNF.com  ·  Web Site: www.HillSlowinski.com 
Weblog: http://HillSlowinskiRealEstate.com

Market Summary 

This has been a frustrating market for many buyers, sellers, and real estate professionals. Buyers in certain price ranges and neighborhoods are finding heavy competition and multiple offers on well-priced homes, while certain sellers are suffering through months on the market without an offer or serious interest.  

The third quarter statistics show a 21% decline from Q3 2009; but with the strong first half of the year, year-to-date sales are still up by 14% over 2009.  Initially it was unclear whether the expiration of the Federal Tax Credit for First-Time Buyers would have a negative effect on the DC market, but it is now generally acknowledged that the expiration of the tax credit has dampened continuing sales growth.

The sales increase from August to September does give hope of a stronger October and November, as does the state of the inventory. The number of available homes and units had a modest gain of 2% in September, when in past years that increase had often been in the double digits. An even better indicator of the strength of the market is the effective inventory (homes and units for sale divided by number of monthly pending sales).  

Single Family

Pending sales of single-family homes in September rose 17% from August, but trailed September of last year by 12%. Through the third quarter, pending sales of homes under $800,000 were down 25% from last September, while homes over $800,000 were up 83%, an indication that the low-end has suffered due to the expiration of the federal tax credit.  In any event, the month certainly saw more success in the upper end of the market.

Through nine months of 2010, sales of single-family homes are up 21% from the same point last year. These gains are across all price categories, with the largest gains seen in homes under $200,000 (up 38%), homes between $700,000 and $800,000 (up 37%) and homes between $1,250,000 and $1,500,000 (also up 37%).

The number of homes for sale rose and the effective inventory fell to 3.82 months.  The inventory in the upper brackets continued to grow however, and the $1,500,000 and over range showed a substantially higher 7.68 months.  Prices of single-family homes have remained stable compared to last year with average prices for properties settled through September down 1% and median prices virtually even with 2009. 

Condominiums and Cooperatives

Pending sales of condominiums and cooperatives were down 15% from last year however, with double-digit losses in many price ranges. There were 4.36 months of inventory at the end of September which puts this market somewhere between a buyers’ market and a market in equilibrium.   Pending sales of units between $150,000 to $300,000 fell 54% from last year, while units over $1,250,000 fell 63%. Units priced between $700,000 and $800,000 did manage a 57% gain, while units between $400,000 and $500,000 saw a 32% gain.

Even with the sales pace slowing through the summer, year-to-date sales of condos and co-ops are ahead 2009 by 6%. The largest gains have occurred in the lowest and highest parts of the market. Sales of units priced under $150,000 were up 92% from last year, while units selling over $1,000,000 were up 49%.

There were 5.19 months of inventory, which unlike the single-family side, puts condos/coops closer to a market in equilibrium.  Units priced over $800,000 have 10.3 months of inventory, while units priced from $300,000 to $400,000 have only 2.9 months.  The sales and inventory numbers show the condo/co-op market trailing the single-family market.  Condo/co-op prices have increased for the year while single-family prices have remained flat. Average prices are up 2% for the year compared to 2009.  Median prices are up 4%. 

Outlook

With low interest rates seemingly offset by tighter and sometimes inconsistent underwriting guidelines, the prospects for a quick turnaround are dim; but stable prices and low inventories still offer optimism for a solid fall market.  There were 4.36 months of inventory at the end of September which puts this market somewhere between a buyers’ market and a market in equilibrium.  This is good news locally compared to the most recent national numbers which show a much higher figure of 11.6 months. Prices also reflect the comparative stability of the DC market, with single-family prices virtually even with last year and condo/co-op prices up slightly. 

 Adapted from a report prepared by Fred Kendrick, with data from the Greater Capital Area Association of REALTORS®

F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA 

W.C. & A.N. Miller Realtors, A Long & Foster Company
Exclusive Affiliate of Christie’s Great Estates, President’s Club 2009
Consultant, Luxury Real Estate, Sloans & Kenyon Auctioneers and Appraisers
4701 Sangamore Road, Bethesda, Maryland  20816
Tel: 301-229-4000  Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409 
Email:  HSlowinski@LNF.com  ·  Web Site: www.HillSlowinski.com 
Weblog: http://HillSlowinskiRealEstate.com

10209 Gary Road, Potomac, Maryland  20854

Offered for:  $849,000  MRIS #MC7428778

This very well-cared for home is conveniently located in a close-in an established Potomac Village neighborhood which also includes several large upper-bracket properties.  It is a beautifully refinished four-bedroom, two full bath and one-half bath split-level home on five levels. The large lot (27,000 sq. ft.) has an open rear lawn area which backs to a wooded lot for added privacy and room to expand!

            This home is less than ½ mile of Potomac Village, with shops, drug stores, banks, restaurants, markets, and other businesses, and access to the nearby C&O Canal National Park along the Potomac River.  The home was built in 1956 and has many updates and upgrades and a recently added large sunroom.

            The first floor features gleaming hardwood floors, an open living room with large front bay window and wood-burning fireplace, dining room, and sunroom overlooking the huge rear yard. The newer kitchen features a tiled floor, updated GE appliances, including a new stove and microwave, newer dishwasher, and refrigerator. The spacious sunroom and the kitchen both provide access to the flagstone garden patio, deep rear lawn, and garden areas.

            The next level features three spacious bedrooms, all with newly refinished hardwood floors and generous closets.  All rooms have ceiling fans for added comfort. The third level up has a very large bedroom with sunny east facing dormer windows and storage space.  The top level is a large floored attic storage area.

         The lower level features a utility/laundry area efficiently fitted with a full-size washer and dryer, a half bath, and a finished recreation room with newer carpeting, paneling, shelving, access to the back yard, and deep one-car garage with more storage space.  The finished basement one level below is paneled and has a new wood floor and wood-burning fireplace. 

            Renovations and updating made in recent years include new paint throughout, new chimney lining in all three flues, new stove, new microwave, new water treatment system.  The hardwood flooring throughout the house has been refinished to its natural tones.  

F. Hill Slowinski, JD, REALTOR^® in DC, MD, and VA
W.C. & A.N. Miller Realtors, A Long & Foster Company
Exclusive Affiliate of Christie’s Great Estates, Top 2% Long & Foster Agents, President’s Club 2009
Consultant, Luxury Real Estate, Sloans & Kenyon Auctioneers and Appraisers
4701 Sangamore Road, Bethesda, Maryland  20816
Tel: 301-229-4000  Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409 
Email:  HSlowinski@LNF.com  ·  Web Site: www.HillSlowinski.com 
Weblog: http://HillSlowinskiRealEstate.com

HOMES WORTH BUYING, HOMES WORTH OWNING

Sellers and buyers both rely on their agent’s expertise and research to help them understand today’s market and what are reasonable price expectations.  A wrong price can kill a listing or a deal. This single factor is so important. An agent who tries to “buy” a listing by providing or acceding to a seller’s unreasonably high price expectations is not helping his client. Pricing high can negatively impact the house’s real value, and can damage the agent’s standing in the community. 

I spend hours on research and data analysis to correctly propose a price range that can work.  For sellers, it has to be the best range I can honestly present.  My purpose is to reach a list price we can expect to best attract buyers and which will result in the greatest amount of proceeds.  I invest this time up front for my seller’s benefit in order to save weeks or months of dissatisfaction with an unrealistically priced home languishing on the market.

For my buyers, understanding comparable sales will help them appreciate and confirm that they are making a good deal,  The goal is to get closest to a sale price that reflects the value of the home to my buyer and that the seller will (or should) accept.

One reference point is in statistical market data on comparable properties 1) that have sold within the recent past, 2) that have not sold in the recent past, and 3) that either are actively on the market or 4) are under contract.  

The value these reports provide individually is different:

• The “Sold” list shows similar homes that were recently on the market that sold the length of time they were on the market, and their price.  This provides a sense of what values are for similar homes.
• The “Expired” list shows the same data on similar homes that were on the market but which did not sell, at least not at the prices at which their owners were attempting to sell them.  The market perceived those homes not to have the value to support the price.  The listing ran its course and expired.
• The “Active”  list reveals the properties a house will have to compete with for a buyer, and the prices at which they are being marketed.  This is competition for a seller.  The report shows comparable houses now for sale and for how long.
• The “Under Contract” report shows houses priced correctly went under contract to a buyer.  These homes “found their market.”

Another value reference is obtained through a professional home appraisal, similar to an appraisal a lender will obtain in determining how much to lend a buyer.  A professional home appraiser will produce a thorough, detailed, and certified home appraisal.  Armed with a current appraisal (less than 90 days old), a seller can be confident that a buyer’s offer is realistic and is close to that amount will meet with the buyer’s mortgage lender’s approval.

Working thoughtfully through these detailed and systematic steps benefits my sellers and buyers by setting realistic expectations and giving the most accurate ‘value’ information for consideration, and we are prepared to negotiate the best contract.

F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA 

W.C. & A.N. Miller Realtors, A Long & Foster Company
Exclusive Affiliate of Christie’s Great Estates, President’s Club 2009
Consultant, Luxury Real Estate, Sloans & Kenyon Auctioneers and Appraisers
4701 Sangamore Road, Bethesda, Maryland  20816
Tel: 301-229-4000  Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409 
Email:  HSlowinski@LNF.com  ·  Web Site: www.HillSlowinski.com 
Weblog: http://HillSlowinskiRealEstate.com