Potomac Yard | Del Ray | Old Town Alexandria Real Estate News

March 7, 2012

NAR Video Explaining The FHA Increase That Will Take Effect April 1 2012

NAR Video Explaining The FHA Increase That Will Take Effect April 1 2012

In a recent blog post, we brought you information on the changes to the FHA costs that will be taking effect starting April 1.  The National Association of Realtors has produced a video which explains the changes, and why they are being implented.

Posted in Buyers, FHA, News
March 5, 2012

Alexandria VA Homebuyers Will Pay More After April 1 With FHA Loans

Alexandria VA Homebuyers Will Pay More After April 1 With FHA Loans

  Time is money.  And if you're looking at homes for sale in Alexandria VA, and will be buying with an FHA loan, then expect to pay more after April 1.  Cindy Small of Union Mortgage Group provides the following update on the fee increases for FHA loans and what they mean for buyers in terms of closing costs and monthly payments.

FHA is raising mortgage insurance dramatically and considering several other changes. 

Homebuyers who act now can beat the increase, by indentifying a home and having a written accepted purchase contract.  There are two dates (April 1st and June 1st) and two changes (up front mortgage insurance which is collected at closing & annual mortgage insurance increases) that you need to be aware of .

 1st Change Effective ON APRIL 1ST,  2012

 

The Up Front Mortgage Insurance Premium (UFMIP) will be increased from 1 percent to 1.75 percent of the base loan amount…regardless of the amortization term or LTV (loan-to-value) ratio. FHA will continue to permit financing of UFMIP into the loan amount.  

What does that mean if I'm buying a home now?  How will that affect my out of pocket costs at closing?
Let’s use two examples…one is a $300,000 purchase and the other a $500,000 purchase.  Both are with 3.5% as the down payment… 

$300,000 Purchase Price                                         $500,000 Purchase Price
  - 10,500 @3.5% down                                               -17,500 @3.5% down
$289,500 UFMIP      1% = $2,895                            $482,500 UFMIP      1% = $4,825
  New UFMIP 1.75% = $5,066                           New UFMIP 1.75% = $8,750

           

2nd Change Effective ON April 1st

 The Temporary Payroll Tax Cut Continuation Act of 2011 requires FHA to increase the annual MIP it collects by 0.10 percent. This change is effective for case numbers assigned on or after April 1st.

 What does this mean? A 'case number' is assigned to your loan once you have received an accepted offer, and your lender begins processing your loan and preparing it for underwriting.  This usually happens within 2-3 days after the lender has received your signed purchase offer.

Currently the annual MIP or mortgage insurance premium (what we often refer to as the “Monthly MI”) on an FHA loan depends upon the down payment amount.  Below is the current vs. what it will become on April 1st.

                     Again, these changes are effective for case numbers assigned on or after April 1st

 

**ADDITIONAL CHANGE TO JUMBO FHA ON JUNE 1ST **

 

FHA is also exercising its statutory authority to add an additional 0.25 percent to mortgages exceeding $625,500. This change is effective for case numbers assigned on or after June 1, 2012.

What does this mean?
Let’s us two different examples…one is a $300,000 purchase and the other a $700,000 purchase with 3.5% down.

$300,000 Purchase Price                                         $700,000 Purchase Price
  - 10,500 @3.5% down                                               -24,500 @3.5% down
$289,500 Base Loan Amount                                    $675,500 Base Loan Amount   
        New UFMIP 1.75% = $5,066                                    New UFMIP 1.75% = $11,821
 $294,566 Loan Amount with UFMIP financed          $687,321 Loan Amount with UFMIP  financed
1.25% Mo. MIP = $3,682/12 = $307 per mo.             1.50% Mo. MIP = $10,310/12 = $859 per mo.

Posted in Buyers, News
March 1, 2012

Alexandria VA Homebuyer Education Class - March 10 2012

Alexandria VA Homebuyer Education Class - March 10 2012

If you are looking to buy a home within the next 3-6 months, then you'll find a lot of helpful information at the Alexandria VA Homebuyer Class that will be held Saturday, March 10 from 10:00 AM to 12 NOON, at the Charles Houston Recreation Center in Old Town Alexandria.  Come and learn about the Alexandria City Office of Housing programs, grants for first-time buyers, and the top things you can do right now to be in the best position to buy a home.

See the Google map below for the direction to the Charles Houston Recreation Center, located at 905 Wythe Street, Alexandria, VA 22314.  Closest metro is Braddock Road station on the blue and yellow lines.


View Larger Map
Representatives from the Alexandria City Office of Housing will be there, in addition to local lenders.  This class is free and open to the public, however seating is limited, so please click here to register.

Alexandria Homebuyer Class Registration

 

Posted in Buyers
March 1, 2012

Another Condo For Sale In Palazzo At Park Center Under Contract

 Another Condo For Sale In Palazzo At Park Center Under Contract

Palazzo at Park Center Condos For Sale -  Alexandria VA listing agent Tamara Inzunza has listed another condo for sale at the Palazzo at Park Center, that has just gone under contract!  This ground level unit offered two bedrooms and one full bath.  Interior features included wood laminate flooring, an updated kitchen with stainless steel appliances and granite countertops, and palladian windows.  The exterior has two balconies, one off of the living room, and the second off of bedroom #2.  Amenities at the Palazzo at Park Center include an outdoor pool, fitness center, and clubhouse.  This unit conveys with one underground parking space.

 

Condos For Sale Palazzo         Alexandria Condos For Sale
Palazzo At Park Center Photo Tour

 

Feb. 15, 2012

Northern Virginia Real Estate Market Report for January 2012 - Video

Northern Virginia Real Estate Market Report for January 2012 - Video

 

Houses are being snapped up quickly.  There are officially more buyers than there are sellers, so in case you didn't get the memo...we're in a sellers market.

Posted in Market Reports, Videos
Jan. 31, 2012

Tam's Tuesday Tip - What Makes You Click

Tam's Tuesday Tip - What Makes You Click

Please join me in helping my future sellers.  Will you tell me, "What Makes You Click?" when you're looking at Alexandria VA homes for sale online?  Inquiring sellers really want to know.  Watch my quick video below and comment here or on my Facebook page.

The first 10 comments, names will be entered into a drawing for a $50 gift card to the Cheesecake Factory.

                               

Posted in Buyers, Sellers
Jan. 22, 2012

Northern Virginia Home Sales Stats for December 2011 - We're In A Sellers Market

Northern Virginia Home Sales Stats for December 2011 -
We're In A Sellers Market

National doom and gloom?  Who knew that Northern Virginia was in the middle of a sellers market?  According to the real estate sales statistics for December 2011, that's the real deal.  Here's the video:

Posted in Market Reports
Nov. 29, 2011

Alexandria VA Real Estate - Are There Any Black Friday Deals?

Alexandria VA Real Estate - Are There Any Black Friday Deals?

Undoubtedly your email inbox has been flooded with Black Friday and Cyber Monday deals.  And according to news reports, it's actually been a record setter.  But what about real estate?  Are there ever any 'Black Friday' deals when it comes to buying houses?

I'm working with a couple of buyers right now who would say so.  Scenario #1: My buyer found a 'steal of a deal' on a foreclosure.  It was a 2BR/2BA condo in the building where he wants.  This home was priced to sell.  My buyer went out of town with the intention of submitting an offer upon his return.  Not only was the condo under contract, but so were four others out of the seven that we saw!  File this one under  'the one that got away'.  Scenario #2: My buyer found a short sale condo that had already had multiple offers.  After submitting an offer, he was disappointed only to learn that the seller selected a cash offer that was lower.

Here in Northern Virginia, we have multiple cycles in our real estate market.  We have the traditional spring market, where historically sellers are able to get the most for their home, but that's also when buyers usually compete the most.  There's also the 'post-Father's Day market'.  This is the time after school ends and families take a vacation, then decide to beef up their home search in order to be settled in before school starts.  And finally, there's the holiday market.  That's the market that we are in now.  This is the market where you will most likely find 'HAVE TO SELL' sellers.  You'll also face some competition among other buyers because the market will include buyers who want to be in their homes before Thanksgiving, before Christmas, or before December 31 for tax purposes.

Home affordability is at an all time low in Northern Virginia.  Not only will your pre-approved dollar go farther than it's gone in the past five years, but with seller concessions (paid closing costs and home warranties), there are deals in place that will be contingent upon you closing before December 31.

You may want to keep an eye out of the Fannie Mae foreclosures.  Did you know that you can purchase a Fannie Mae foreclosure with as little as $500?  Here are the newest foreclosures that have hit the market in Alexandria, are you ready to go house shopping yet?

 

Posted in Buyers, Foreclosures
Nov. 12, 2011

Alexandria (City) Va Real Estate Sales and Market Report for October 2011

Alexandria (City) Va Real Estate Sales and Market Report for October 2011

For the month of October 2011, there were 138 homes that sold in Alexandria City, with sales totaling $59,725,362.  The median sales price for homes was $385,500 and the average sold price was $432,792.  On average homes stayed on the market for 67 days and were sold at 95.1% of their asking price.

Mouse over the interactive chart below and you'll see that sales in October 2011 came back from a three month decline.  In July there were 186 homes sold, in August 166, and in September there were 124 homes that sold.  Distressed sales (Alexandria foreclosures and short sales) continue to play a minimal role in the overall market.  In October, there were only 13 foreclosures that sold, and 9 short sales.

What was the effect of the median sales price for homes in Alexandria City for October 2011?  Since April, the median sales price of homes has been teeter-tottering.  It been up one month, down the next.  In May, the median sales price peaked at $493,000; in October, the median sales price was down to $385,500.

Did homes in Alexandria City stay on the market longer in October 2011?  Aleaxandria VA homesellers have reason to smile.  The average days on the market continue to improve.  After the spike in August at 80 days, September's numbers improved to 73 days, and in October came down to 67 days.

 

Did Alexandria City homeowners just give their properties away in October 2011? Traditional homeowners didn't, but in transactions that involved the banks, the buyers were able to negotiate the prices down.  In October, home sellers received 95.10% of their original asking price.  Properties that were bank owned foreclosures got 93.32% of the original asking price, and short sales were sold at 89.37% of the original asking price.  This supports that the 'deals' are still in the Alexandria short sales and foreclosures.

 

 

 

 

Posted in Market Reports
Nov. 9, 2011

Open Houses For Bucknell Manor - November 13

Open Houses For Bucknell Manor - November 13 - 6913 Kenyon Drive, Alexandria VA 22307

Bucknell Manor Homes For Sale - Come see this pristine four level duplex that has been completely renovated this Sunday, November 13 from 1-4 PM.  This move-in ready home offers hardwood floors, a new kitchen with extended island, stainless steel appliances, and maple cabinets.  Three generous sized bedrooms, three full baths, and a finished basement with recreation room, full bath, and front loading washer and dryer.

Posted in Open House