valentinosdcpulse: February 2010

Nearly two years have passed since Congress passed the controversial $700,000 billion Bailout Bill, which was delivered with enough blame and finger pointing to make every American's stomach turn. Realtors, brokers, lenders, and investors across the country were invested as long time friends of the industry Freddie Mac and Fannie Mae became center participants in this heated Capitol Hill debate and bailout.

The government bailout was originally aimed at making mortgages easier to obtain and afford for the homebuyers in America. At the time, this was welcome news to most on the front line of home buying and selling across the US. But as the past two years have unfolded, many in the real estate market have been left with the same questions and doubts that many other taxpayers have.

By the beginning of 2010, national headlines were screaming "Housing Still Needs a Lifeline".  But now, the number of taxpayers questioning the bailout has grown. Many within the real estate and finance industries felt it in the pit of their stomachs when they heard that on the eve of December 24^th 2009, the US Treasury Department uncapped the credit line for both agencies.

Realtors, brokers, borrowers and lenders alike were left reaching for a bottle of Pepto Bismol when hearing that this latest bailout came only hours after the companies said that their chief executives would be paid up to $6 million on an annualized basis for 2009. Furthermore according to the NY Daily News, in addition to the CEO pay, 10 additional executives at the two companies are eligible collectively for $30.1 million in compensation for 2009. 

By early Feb. 2010, HousingWire stepped in to offer this report on TARP. Meanwhile, with the 2011 budget at hand, the Obama administration stands steadfast behind the bailout pledging to back the troubled mortgage finance giants regardless of the size of their losses.

Also in early February, FoxBusiness released the article:  "White House Projects Lower Losses in Fannie, Freddie; Analysts Skeptical". Obama's Administration holds an optimistic outlook, while other analysts and opposition predict a bleaker outlook. Meanwhile other government plans are forcing honest citizens who could make reasonable mortgage payments seek the shelter of short sales or bankruptcy leaving them without homes. Many really don't get the reasoning behind such policies. Others are left asking what happened to the $35 billion designated to modifying bad mortgages with 800,000 still awaiting results.

If this isn't enough to think about, look at this new can of worms opened up by Congressman Barney Frank. In this USA Today article Barney Frank, chairman of the House Financial Services Committee, is now calling for the whole secondary mortgage market system to be scrapped and to come up with a new one.

Based on the blogs they write, many on the front line of real estate sales don't seem to reflect the views of this drastic move. Obviously something needs to be done, but surprisingly this legislation actually has quite a bit of support up on the Hill. Please step in and give your opinion on this overwhelming subject. What are the rest of you thinking right now?

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Expect Rachel Valentino, DC area expert to be on top of the hottest topics. If you are in the market for a new home in the DC area, don't let the media news scare you off, Rachel will help you explore all the options still available to you. The door that opens for you just may put you into your next home.

If you are looking for a new home in an up and coming neighborhood, then H Street Corridor may be just the place for you. But you may want to move quickly, as this is a neighborhood that's making a comeback to its memorable status. History tells us that some of Martin Luther King's fondest family moments were spent participating in the H Street Halloween Day parades in the late 40s. After years of decline, H Street is making its comeback to sidewalks full of people and smiling merchants.

So far, recent years have seen new small businesses, bars, restaurants, art galleries, and home renovations up and down the corridor. The District is committed to investing in small businesses in the area and it shows. H Street is transforming into a unique neighborhood that blends the historic DC with the new. The wide array of new small businesses is impressive. Here you will find unique bars and restaurants housed in historic buildings along with eclectic shops and family owned businesses. In addition, there is currently more than a billion dollars in new development on the way on H Street. Download Brochure. People are visiting again and noting that H Street is a place that's changing.

Every day, new businesses move in, new construction begins, and new neighbors move in. If timing is everything, then the time to get into this neighborhood is now. This is still considered an area where young families can buy a new home. Currently, parts of H Street are being considered for historic district status, but prices are still reasonable, and one can still find vintage homes, especially rowhomes, in need of rehab for sale. There are also new additions to H Street like the Renee; if you are in the market for a reasonably priced condo, this may be for you.

Although currently H Street is an area in transition, within 5 years  H Street's official renovation/ beautification plan will be complete and the streetcars will be up and running. Also currently underway is the new 8th and H Street NE development with mixed use and ground level retail that will run from 8^th-10^th Street. This certainly is an area to keep your eye on!

More new developments in the area include:

Washington Real Estate Partners Project (600 blk of H St - South side)
Mixed-use project that includes 234 residential units, 500 parking spaces and ground-floor retail.

Capitol Place (200 blk of H St - South side)
Dreyfus Development's mixed use project with over 400,000 sq ft of retail, 300 condos, 380 parking spaces

Union Place - Loree Grand (200 blk of K St - North side)
Will house 30 artists in residence at 3rd & K Sts NE and will include over 200 residential units, a roof garden, a courtyard, a gym and ground floor retail with occupancy in March or April.

Near H Street: Capitol Hill Condos: The Station (old police station) (525 9th Street)
Design approved by ANC6A in September, targeted completion by end of 2010 with construction starting in February.

If you want to be part of this now trendy neighborhood, don't dally! Contact Rachel Valentino today. You will want to be in your new home when this area really takes off. Whether you are interested in condo living or a vintage historic home - DC expert Rachel Valentino can help you find the right home for you in one of DC's most exciting, dynamic, yet still affordable areas - H Street.

HOT NEWS: Believe in the unexpected. The Floridian, 118-unit luxury condominium located right in the middle of vibrant U Street Corridor just announced a spectacular Grand Opening Sales Event soon. Contact Rachel Valentino  today to register or learn more. With spectacular sweeping views, flawless finishes and lowered prices you won't believe, you won't want to miss this event. 1 bedrooms are starting at a remarkably low $333,000 or from $392,000 for a 2 Bedroom so expect them to go fast. Timing is everything, don't miss out! Contact Rachel for more details before it's too late. 

While the rest of Washington DC sleeps, there are a couple of notable neighborhoods that come alive at night. U Street is one such neighborhood where you can actually feel its history and the diverse beat of the music as this neighborhood shines each night in the cultural spotlight. "Funky", "Cool", "Ultra Urban" - these are just a few of the terms being used to describe one of DC's hottest condo markets well known for Ben's Chili Bowl and the Lincoln Theatre - U Street.

U Street has been praised in the New York Times, The Boston Globe, and Marie Claire to name only a few. Clearly, U Street is one of the hottest addresses in DC. Other metropolitan areas around the country are modeling U Street as a pure and simple example of Urban Renaissance. Steeped with history this beautiful neighborhood offers a rocking nightlife, the best in art galleries, the ultimate in restaurants and shopping, and is still known as one of the elite spots for jazz and blues music in the country.

U Street is no longer set apart from the rest of DC; today the green and yellow metro stops right in the middle of the neighborhood. And this Urban Renaissance beginning in the 90s after decades of neglect shows no signs of slowing down as it gathers speed. Rising from the ashes of the riots following Martin Luther King's assassination, the boarded up buildings and community neglect have been transformed into one of the most glorious of the DC Historic Districts. U Street Corridor has blossomed into a growing community of artists, boutiques, chic urbanites and nightlife seekers.

As is true of any great Urban Renaissance, here history, art, and architecture has been preserved and blended with the new. The greater U Street Historic District extends roughly from 16^th Street on the west to 7^th street on the east and from S Street on the south to Florida Ave on the north and includes over 1500 historic buildings. Year round both visitors and residents enjoy the fascinating history of the U Street area by walking City Within a City: Greater U Street Heritage Trail. There is also the African American Heritage Trail to explore and enjoy.

On all sides of U Street, the grid of streets is defined by a preserved collection of 19^th century residential row houses along with churches and corner stores. Then, during the recent transformation starting in the 90's, numerous luxury condominiums were built like Union Row and the Ellington giving fresh life to the neglected area. Today, nearly 10,000 new condos and apartments have been added to the U Street real estate landscape in the past decade. Hold on as the Floridian opens condo sales Feb 25 2010 and new life continues in U Street.

Rachel Valentino is on top of the best deals in the U Street area. Contact her now to get registered for the Floridian's Spectacular Grand Opening Event. Whether you are interested in a newer condo or a vintage row house, Rachel is standing by ready to help you achieve your homeownership goals. Be a part of this exciting neighborhood, put U into U Street!

There is a lot of buzz surrounding the perceived potential shortage of condos in the DC market. A couple of sources agree, as it stands today, there will likely be a shortage of new condos in the DC Metro area within the next 12-18 months. That is because right now, mirroring the economic conditions of the past few years, many projects have been put on hold and we just aren't seeing the number of new planned projects on the table. Some of the few that are going forward in the DC area aren't scheduled to deliver until 2012 and even 2013.

But one of the beauties of living in America is that we have a capitalistic system that is based on supply and demand. Therefore even one of the most read current reports on the DC Condo market, put out by partners Urban Turf and McWilliams/Ballard, titled their 4^th part: "The Upcoming Condo Shortage (Maybe)". Here in America, a high demand, is never left untended long. In other words, if the demand becomes high enough, suppliers will find a way to deliver the product, usually finding creative new and faster ways to deliver.

 Many of the newer constructions had been planned in the Metro area, along the beltway around the Alexandria and Arlington VA areas called the Dulles Corridor. That is because of the new jobs, especially in the technology fields expected to come to the area. Again, once the jobs are slated and confirmed, it is expected that builders will be clamoring to find ways to deliver new condos as quickly as possible. This will also put many in the construction industry in the market for at the very least "temporary" housing in the DC area.

The McWilliams/Ballard 2010 report also notes that the DC is the strongest condo market in the region. It is also expected to be on of the most active markets in the near term. That seems reasonable, just consider DC neighborhoods that make condo buyers drool, like U Street, a buzzing and very vibrant community. We will take a look at some of these upcoming and hottest DC condo neighborhoods like U and H Streets upcoming articles.

Another consideration is that this report is looking at new construction. We can't forget that many potential sellers of current condos that have been riding out this stormy economy. It is expected that as the economic recover takes hold, we will see more sellers putting their current condos on the market. Winter has also been notorious for slower sales and DC is experiencing a record-breaking winter.  There are also the foreclosed properties held by banks, the "shadow inventory" that still has not hit the market in large numbers. All these points combine to add additional opportunities for condo buying in DC in the near future.

Overall, the DC condo market remains positive. DC retains one of the lowest vacancy rates in the country among large metropolitan areas. The solid and expanding job market will continue to bring new residents to the area. Combined with the the ever growing great reasons to chose condo living - there are certainly ways to find a condo in DC, even in today's market.

But DC condos are being moved quickly, so you will want to start by teaming up with a professional Realtor® who is experienced and you can trust. Turn to Rachel Valentino who will help you form a plan putting you into the condo of your dreams. Expect her to be on top of the DC area condo market and the creative financing options open to condo buyers in the area. Turn to the best, contact her today - let her help you.

America is watching as huge numbers of properties are entering the foreclosure system but far fewer are leaving. What has resulted is a huge backlog of unsold homes and other distressed properties owned and being held by financial institutions. It is these properties held in limbo that are called the "Shadow Inventory". They are being called "Shadow" because they are properties not listed in the statistics compiled by The National Association of Realtors, The National Association of Home Builders nor the US Dept of Commerce.

No longer even questioned as a myth, "Shadow Inventory" is creating quite a stir. Speculation is running rampant and it is no wonder why. The US real estate market hasn't experienced such a phenomenon at this level before. So even the top experts in the financial, banking and real estate markets can't agree on what will happen nor to what degree.

At best, it can be said that it is a very complex situation. Banks claim to be trying to save the economy while not having to sell properties at huge losses. Meanwhile ,some economists are accuse  banks of trying to artificially control supply and demand, which is leading to legislation debates over whether or not there may be unfair and deceptive practices going on.

Buyers are searching and demanding information. They are raising questions such as "Where is this excess inventory?", "When will the next wave of this inventory hit the market?", "How large is this inventory?", "Will this inventory cause a decline in market prices?", and "How can offer my home for sale without a loss in this market?".

One can see why so many people may be getting frustrated and impatient for answers as real estate agents are left reeling as they try to come up with real answers. They, too, are searching for answers on what to expect in the upcoming months and years as these homes hit the real estate market. The top Realtors are staying on top of what the experts and legislators are saying while keeping current with the constantly changing homebuyer guidelines.

Meanwhile, there is some good news to report. Fannie Mae is currently implementing the Deed for Lease^TM Program under which qualifying homeowners facing foreclosure will be able to remain in their homes by signing a lease in connection with the voluntary transfer of the property deed back to the lender. Click here for more information. Most experts do agree that it is in the best public interest to try to Americans in their homes during this time of economic recovery.

Rachel Valentino is a respected and accomplished Realtor in the Washington DC real estate market. Log on to her website, the Atlantic Coast Connection, to learn more about her and view available properties or contact her to discuss your selling opportunities. You can count on her to be on top of the hottest topics and give you sound advise on real estate subjects.