Written by Tim Savoy
Let’s be honest about the 2014 real estate market: It wasn’t exactly the greatest year for growth in Washington, D.C. As of the end of November this year, the number of units sold in Washington, D.C. has increased 4.13 percent. Sure, growth is always great, but when compared to the same time last year, the area had seen a 14.14 percent increase in total real estate units sold compared to 2012; albeit, 2013 was a year that was overall much more productive than 2012, perhaps explaining the sluggish 2014.
As we look forward to 2015 it is essential to associate the mild 2014 as an indicator for the positive direction the Washington, D.C. market will turn next year. Nationwide, the National Association of Realtors (NAR) predicts that the number of sales of existing single-family homes will increase by 5.8 percent in 2015 with the median price rising by 5.2 percent. Compared to the current D.C. climate, this is already an increase in the percent change from 2013 to 2014 (assuming an average over 4.2 percent growth through the year’s end). However, when shifting from the national market to the D.C. market, many analysts predict that the local market will be one of the top markets in the country for 2015 due in large part to the equity that has been built up through a market with limited inventory than comparably size metro areas.
Besides a greater growth in the number of properties sold, other indicators will likely continue to recover in 2015. Overall, 2014 saw a near 14 percent decrease in the average days on market for all properties (from 43 days in 2013 to 37 days in 2014). Due to a market that will likely surpass the national growth, it may be safe to assume this decrease in average days on market will continue. Furthermore, with a more balanced market between the buyer and the seller, we can expect much more equitable deal making across the board according to Coldwell Banker’s top agent James Braeu. This means good news for new buyers to the market as D.C. has often been associated much more with a seller’s market.
What about the individual, taste-specific market trends for real estate in D.C.? According to the MLS, the greatest appreciation for home purchases in the city has been outside of the downtown area. From the Southwest Waterfront to Cleveland Park to Hillcrest (the area with the greatest appreciation), home values are generally appreciating more outside of the traditional downtown neighborhoods (though this trend has been predicted for years because of a limited inventory in the most urban settings). Another predictor of this growth in a more suburban setting is the presence of a boomer generation upgrading from a 1-2 bedroom condo to a much more spacious single-family home. As predicted by Michael Marriott and Stanton Schnepp, two of Coldwell Banker’s top real estate agents, sellers are cashing in on their condominium’s equity and taking advantage of low interest rates in order to purchase a fee-simple house. Their new mortgage is normally equal in value to their condo when factoring in the cost normally associated with a condo fee.
Now, what about paying for your next home? One standout in 2014 was truly the drop in interest rates. From January of this year, rates were averaging at or around 4.3 percent. Over the course of the year, the national interest rate has dropped for most to at or below 4 percent. For 2015, rates are predicted to increase sometime in the next six months and continue this cycle for the next two years. Thus, for buyers hoping to lock in a great low rate on a mortgage, the time to buy is truly in 2015.
In summary, perhaps it is somewhat safe to have optimism for the 2015 real estate market when compared to our mild 2014. With the D.C. area among many analysts’ top markets for 2015, the area should see above-average growth throughout the calendar year compared to a somewhat average 2014.
This article first appeared in the Washington Blade. Tim Savoy is a real estate agent with Coldwell Banker Residential Brokerage, Dupont Circle. Reach him at 202-400-0534 or timothy.savoy@cbmove.com.
Written by Tim Savoy
Buying a home in the winter may not be your impression of the best bet on the right time to buy. Cold weather, holiday travel, and much needed time off from work as well as ringing in the new year can often sway a buyer to waiting until the spring. For some, waiting until the spring seems logical because you may believe there is more to look at or you just do not like touring houses when there is ice and snow on the ground. However, buying in the winter poses its own unique strengths that the other seasons cannot boast: motivated sellers, faster loan approvals and a greater potential to negotiate price.
To begin, competition scares off a lot of buyers in the marketplace. Many times, agents may describe the city (especially within D.C.’s most competitive neighborhoods) as a seller’s market — that is, a market where the seller can dictate prices for the buyer much more than a market where inventory sits for a longer period and the buyer has the upper hand. Throughout the winter, this trend is flipped and the lack of buyers in the market causes much less competition for the buyer in purchasing property.
Sure, the inventory does take a dip in the winter, but not as dramatically as you may believe. In December 2013, the change in new condos on the market decreased from around 645 new units in November to 550 units in December. Thus, new listing inventory dropped by around 15 percent from November to December 2013. This drop is not as dramatic as some buyers may expect. Thus, there is still a lot of property to see during the winter.
In winter months, sellers are much more motivated to move inventory off the market. For some winter sellers, especially sellers whose property has sat on the market for a while, a serious buyer may be able to get away with a property at a significantly lower cost to the buyer. This mental game of tying up loose ends on the seller’s side pushes for some great deals for the buyer.
Regardless of when you buy, you should be working with services, mainly your real estate agent and your loan officer, that provide a great experience. In the winter, when business slows for both of these industries, you may get even more attention from these services when buying. For mortgages, loan approval may be faster than the rest of the year in winter as the volume of loans being processed by the lender is lower. Moreover, an offer that shows a quicker turnaround to closing may allow for additional leverage in the contract for items such as inspections, closing cost assistance or even price.
Finally, let’s end on the highest of notes: buying in the winter allows a buyer to negotiate a better deal. Think of it this way: in a market with motivated sellers and a lower supply of buyers, a seller is more than likely to negotiate price much more than a market with a greater number of buyers. Moreover, for properties that have sat on the market for months, a seller may likely want to negotiate a price that feels right to close by the end of the year.
To sum it up, buying a home in the winter is a great opportunity to take advantage of a slower season. In all, less competition, motivated sellers, faster loan processing and a greater chance of negotiating the list price are all reasons you should buy now in the winter instead of waiting for the spring.
This article first appeared in the Washington Blade. Tim Savoy is a real estate agent with Coldwell Banker Residential Brokerage, Dupont Circle. Reach him at 202-400-0534 or timothy.savoy@cbmove.com.
Written by Tim Savoy
“I can’t afford the down payment.”
“I have no idea where to start.”
“My income is above the threshold to qualify for first-time buyers programs.”
“There is absolutely no way I can buy while single and have college debt still.”
Every day, I hear the same excuses from clients who want to purchase their first home. These excuses, while valid for some, are myths in the buying process.
The reasons to purchase over renting are discussed frequently. In the long run, buying is more cost-effective than renting (by about 35 percent in D.C.). For any buyer who lives in their property as their main residence, the Homestead exemption lowers their assessed tax value by $70,200. Not only is purchasing cheaper by the month, but it also delivers annual returns.
Let’s state the obvious: Buying a home can be a scary process for anyone, let alone purchasing for the first time. Another reality, while many do purchase with cash, not everyone has the liquidity to make a first purchase in cash. For many first-time buyers, a majority of life savings goes toward a down payment of 20 percent to avoid a less desirable loan product. For many, the words private mortgage insurance (PMI) causes fear. However, many do not realize that your PMI on a purchase with less than 20 percent down can be built into the rate of your loan. Moreover, PMI is tax-deductible when your homeowner’s adjusted gross income (AGI) is less than $100,000, and still deductible, though reduced, when above this threshold.
Purchasing in D.C. and the surrounding areas for the first time does have its incentives. For example, DC Open Doors is a great opportunity for first-time buyers to receive a great loan while making a low down payment. On the surface, the program is simple, you can qualify if you make up to $123,395 a year, a much higher ceiling than the average first-time buyer may expect. Moreover, the maximum loan amount is $417,000, easily allowing a first-time buyer to purchase a variety of housing across the city. Even better, DC Open Doors has some products with the option of down payment forgiveness with 20 percent of your down payment forgiven each year for five years.
Perhaps a program like DC Open Doors isn’t the right product for you to finance your first home. Many lenders have products tailored to buyers who are hoping to make a low down payment. For example, one of my preferred lenders at First Home Mortgage, David Toaff, assists his clients with loan products that provide a maximum $625,500 loan with only 5 percent down. Moreover, the same lender can provide a loan of $850,000 with just 10 percent down. The takeaway message here is that financing is possible at all levels of income and price points without the industry standard 20 percent down.
In all honesty, purchasing real estate relies heavily on relationships. For a first-time buyer, find a lender who specializes in working with first purchases. Many look first to their bank, many times a national or international financial institution, to finance their purchase; however, sometimes the best lender isn’t always the one you bank with. Instead, look to a more local mortgage brokerage (in fact, feel free to call David with First Home at 610-348-3772).
Finally, there is nothing wrong with searching in the long-term. Yes, mortgage rates are lower now than they have been in a year, and we do not know when this trend will reverse (have no doubt, rates will have to rise eventually). Regardless of your timeline, take the first steps in the buying process; find a lender and real estate agent you can trust. I can promise you will not regret the decision to purchase your first home.
This article first appeared in the Washington Blade. Tim Savoy is a real estate agent with Coldwell Banker Residential Brokerage, Dupont Circle. Reach him at 202-400-0534 or timothy.savoy@cbmove.com.
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The annual H Street Festival takes place this SATURDAY featuring local artists,
artisans, food and more! [link]- In the mood for a soiree? MPA Hosts their annual artfest Soiree and Luck of the
Draw on TUESDAY from 7:00-9:00pm [link] - 5×5 project continues with Digging for Nomuments on the Waterfront, an
interactive performance piece this SATURDAY. [link] - On SATURDAY take the hike out to Mt. Rainer for the MAS studio visits with
Alonzo Davis, Dorothy Fall, and Alec Simpson [link] - Closing this SUNDAY, Artisphere shows Gina Matchitt’s “Being There”, a brilliant
exploration of tourist culture [link]
- Art 17 opens Art Enables TONIGHT at 6:30 pm featuring emerging artists with
developmental disabilities in the Nation’s Capital. [link] - Whiskey Delta Charlie featuring the work of James Kerns opens FRIDAY at
7:00pm at Hierarchy with some awesome new work [link] - Venture down south to Honfleur Gallery on FRIDAY for Selin Balci’s exploration
of living beings in her work from 6:00 – 9:00pm [link] - If you’re interested in heading out of town a bit, artdc presents Tag You’re It,
an exploration of figurative art. Opening SATURDAY from 11:00am-5:00pm. [link] - The annual 17th St Festival is this SATURDAY.
An awesome opportunity to see local creative artists and more! [link]
- The 5×5 Project kicks off this weekend with several events but don’t miss the
opening reception on FRIDAY from 6:30-8:30 PM. A city wide art extravaganza
that goes through the fall! [link] - HOME (again) and AIDS Unanswered open SATURDAY at Arlington Arts Center
featuring 6 artists answering and responding to questions of their “home” and
the AIDS crisis [link] - TWO FOR ONE: AU opens two fall exhibitions SATURDAY “Readymade 100” and
“Some Uses of Photography” from 6:00-9:00pm [link] - Brentwood Arts Exchange opens “Axis” SATURDAY at 5:00 pm. An exhibition
challenging the center or connective core of things, people, ideas and art! [link]
Check out this video from RBI about the DC Market in June. More detailed stats are in the chart below.
Washington DC Market Statistics – June 2014
Let’s face it. Summer in DC can be brutally hot. The DC InsideOut Team has compiled some totally awesome ways to chill out around the District.
Cannonball!!
Take a dip at one of DC’s public pools (FREE for all DC residents) or visit one of the city’s hotel pools with day passes available. Looking for a pool party? Saturday & Sundays Capitol Skyline Hotel in SE will make you feel like you’re on vacation in South Beach. Check out the pool at the Rooftop Deck at The Embassy Row Hotel, just 1/2 block from Dupont Circle and offers lovely skyline views of the city. The Washington Plaza boasts a poolside bar, free wifi and season passes are available. The Liason Capitol Hill has an amazing rooftop pool and lounge where you can grab a drink or something to eat while you relax.
For a more family friendly atmosphere, check out the local public pools: Banneker Pool in Petworth, East Potomac Pool at Hains Point, Francis Pool in the heart of West End or Volta Park Pool right off Wisconsin Avenue in Georgetown.
Chill Out with a Scoop
Enjoy an icy cold treat! Head over to Union Market and check out the delicious Trickling Springs Creamery. Their ice cream is made from dairy provided by local farmers. Thomas Sweet in Georgetown has their signature blend in where you can choose toppings to be blended right into your ice cream or if you’re more health conscious, try their fat-free frozen yogurt. Larry’s Ice Cream in Dupont is known for the best homemade ice cream and if that’s not enough they have tasty cupcakes too! Craving Gelato? Dolcezza Gelato & Coffee has locations throughout the District, the newest in Logan on 14th & P. Try the unique handmade flavors such as Chocolate Mexicano and Champagne Mango. Looking for a icy treat that won’t make you feel guilty after? Head over to Mr. Yogato in Dupont. Their yummy all natural frozen yogurt can be enjoyed with healthy toppings.
Cool Off While Soaking in Some Culture
DC Museums crank up the A/C, so it’s a perfect way to cool off, get out of the scorching sun and soak in some culture instead! The best part, most of them are FREE! Check out Van Gogh at the National Gallery of Art, American Cool at the National Portrait Gallery in Chinatown or any of the amazing Smithsonian Museums down on The Mall.
Hang by the Water
The Yards Park in Navy Yard has spectacular views of the Anacostia River, a splash pool perfect pre or post Nats game fun. The Georgetown Waterfront Park, is right along the Potomac River and offers over 10 acres of space with beautiful views, as well as a water fountain, boat & kayak rentals, great restaurants and bars where you can people watch and check out the yachts and others boats dock.
Cool Off While Catching a Flick
Another great way to beat the heat is to catch a movie. Movie theatres are a great place to hide out from the sun and heat and stay cool in the A/C! There’s the historic Avalon Theatre in Chevy Chase, the Uptown Theatre in Cleveland Park, Regal Gallery Place in the heart of Chinatown or Lowes Georgetown by the Georgetown Waterfront.
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HAVE NO FEAR to allow yourself to love a piece of artwork when you experience one and add it to your life and home! …It’s so important to have beautiful, original artworks in your life. As a full-time professional artist and the Art Curator for Vastu on 14th street, and Art 17 at Coldwell Banker Residential Brokerage, Dupont on 17th Street, Brian Petro selects artwork that compliments the Vastu collection and the environments for which the work is acquired, and supports Coldwell Banker Dupont’s vision to increase visibility of artwork to the local community. From his years of creating his own bodies of artwork, personally acquiring other artist’s work for his personal collection, and visiting public and private collections during his travels, Brian knows a lot about art collecting and offers some tips:
- Visit museums and local shows and art openings to get a feel of the style that feels right for you. Allow your artwork to show your life experience and interests, however happy or morose they may be.
- If you like something, if it “feels right,” if it makes you pause… don’t rationalize to deeply why… accept that you do. Our visceral, gut instinct tells us that a piece is “speaking” to us. You’ll have plenty of time to rediscover and love the many reason day after day on your walls as you grow as a person, and your insight in life continues to develop.
- Visit artists’ studios to meet them in person and experience the environment in which the art work was/is created. With a 20-40 minute visit you can find out so much about their artwork. You will see many more, and a wider range of, pieces in a studio than in any gallery show, and you really get to learn and understand the methods and meanings of the artist’s purpose.
- Ask friends who are art collectors or patrons about which artists they think are truly dedicated to their career, the quality of their product, and conduct their business in a professional manner.
- Buy because the work “feels right” to you, but also… think about the possible investment value of artwork. Not all artist’s work will become prime for future auctioning for immense post-mortem value, but it may be. It’s sad, but true…When the artist kicks it, oftentimes, value increases.
- Buy a more pieces than you can display. Keep some pieces stored and every few months re-arrange your collection around the house. This is a great way to get a fresh look without additional renovation charges.
- Buy to be a Patron of the Arts! It is so important to realize that by collecting artwork, you are allowing artists to do what they do… create news ideas, educate the world, offer new experience to the viewers, and take people on journeys only able to be afforded by the fertile mind of an artist. The world benefits by the ideas and actions of artists, but sadly, many artists work through life struggling to house and feed themselves to do what they do. By buying, you help keep the world fresh and interesting for all by supporting the existence of artistic minds and abilities.
- Buy to help share the important messages an artist expresses that you wish to imbue to others. You can assist others to see your important values and ideas through work that educates continually upon view.
Brian welcomes visitors to his studio smack in the heart of 14th and U off the lower showroom of Vastu (1829 14th Street) all the time by appointment to view his artwork, or just discuss art in general. Simply call him at (202) 270-7352, or email him at brianpetroartist@yahoo.com to schedule a time convenient for you and your friends. Also search “Brian Petro Artist” on YouTube.com to see a film short on him and his philosophies or Google him to see a range of his impact in the world of art.
Office – 1938 15th Street, NW, Washington, DC, 20009
Studio – 1829 14th Street, NW, Washington, DC, 20009 (off lower showroom of Vastu)
Search “Brian Petro Artist” on YouTube.com
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