This mris report was gathered from sales and contract data during the month of November. This covers all of Washington, DC. There was a mad rush in November!  I’m attributing this to the initial expiration date for the tax credit, which was supposed to end at the end of November.  Activity is up across the board but, as usual, most activity was in the price range of $300k-$600k with not much going on in the luxury bracket.  Even though average sales price is lower by 13% compared to last year, activity has jumped to nearly 8% more than October’s sales volume.  Interestingly, most properties are getting close to what their asking price is when compared to last year.  Compared to last month, more people were willing to pay more for properties.   Interest rates were still in the high 4’s or low 5’s at the most and inventory was plentiful.  Most properties didn’t stay on the market for more than 30 days which indicates that demand was up.  This is a clear sign that buyers are taking advantage of the favorable market conditions.

Conventional, FHA, and cash financing were major sources of funds for purchase.  One thing I noted here was that there were 810 properties under contract for the month of October.  This is HUGE considering that there are only 575,000 residents in DC!  Wow!

Clearly, Washington, DC is experiencing a robust real estate market.  On top of the great rates and well-priced properties, buyers were inspired to move forward with their plans to purchase because of the $8,000 first-time homebuyer tax credit.  It has now been extended to the end of April 2010 which will help the market keep its momentum.

Check out the report and let us know if you have any questions about your neighborhood.  We’re happy to provide you with custom neighborhood reports. In the meantime, we hope that you find this information useful.

A note of thanks to Kate Reichert and Andrew Kohn, who participated with me in the Rebuilding Together project on Saturday April 25th, 2009. The house was located at 524 14th St. NE in DC’s Capitol Hill neighborhood. It was a two level Victorian home with three bedrooms and one full bath. Minnie, the 71 year old owner, was as sweet as can be. Her home had been uncared for since her husband passed away and as a result, it needed to be cleaned up and repaired.

Together with the crew organized by GCAAR, we took charge and cleaned her kitchen, repaired appliances, repaired her utility room, painted exterior window trims, planted flowers in her front yard, cleared out her back yard and bedrooms (which were FULL of unneeded items), repaired her toilet and cleaned the bathroom, installed grab-bars, painted the second floor hallway and bedroom and, overall, created a more functional, clean and organized home for her.

It was truly a wonderful experience to not only bond with other realtors in the area who care about their communities, but also to see how our work together made and will continue to make a positive impact on the owner’s quality of life. Thank you again for your participation. I look forward to the next opportunity to share in this wonderful experience!

Washington, D.C., traditionally takes a back seat to world cities like London, New York and Tokyo when it comes to real estate investment.

That’s likely to change.

Thanks to a proposed $1 trillion wave government spending, investors are flocking to D.C. for opportunities in the commercial and residential real estate markets. All these new programs will need offices, after all, and their employees will need places to live.

This year, Washington leapfrogged London for the first-place ranking in the world’s best cities for real estate investment. But don’t count out the world’s financial capitals just yet–even with massive financial troubles in London and New York, those cities finished second and third, respectively. Why? It’s the appeal of long-term stability, and fears that emerging countries are going to take a harder hit

Behind the Numbers
Forbes’ rankings come from the Association of Foreign Investors in Real Estate, a research association that tracks where member investors are finding the best opportunities around the world. AFIRE surveys its 200 members, who collectively hold $700 billion in cross-border real estate.

Here’s a list of top ten best places to invest in real estate:

courtesy: Forbes.com

In today’s market, becoming a seller means you’re initiated in a group that’s labeled as being at the bottom of the real estate food-chain. There are way too many sellers and, as a result, the inventory has become saturated. Funny thing is there are sellers who are savvy enough to know what the buyers are looking for: Everything from a great location, great price, and a great house . That’s right. Buyers want it all and sellers have to deliver on this expectation.

So here’s my advice to sellers thinking of listing their property for sale:

1) Do your homework. Go to as many open houses in your neighborhood as possible and get a sense of how people are “packaging” their house.

2) Talk to at least two real estate agents who know your neighborhood and its inventory. It doesn’t hurt to ask whether or not the agents are currently working with buyers looking for a similar property as yours.

3) Don’t be greedy! In this market, it will not pay off to make this first impression in the buyer’s mind. Believe me, they’ve done their research and will know right off the bat whether or not you’ve priced your home right. So be VERY careful not to over-price. In fact, research has shown that homes priced competitively or just a bit below the average sell at a faster pace than those priced right at market or above it by a few percentage points.

Welcome to the Pricing Game!

4) Be a perfectionist with your decor. De-clutter as much as possible, de-personalize as much as possible and remember that less is always more when it comes to staging your house. Don’t get too creative and don’t customize anything so as to turn off the masses. Think of a hotel room and make sure people can feel at home the minute they walk into your home.

5) It is scientifically proven that you literally have less than 10 seconds to capture a buyer’s heart. Take the time to really pay close attention to the exterior as well as things like the door, main entry and the main room being the focal point of the home. Scent is another big deal. Stay away from over-scenting your place. In fact, keep it as neutral and “clean” smelling as possible.

6) It might be helpful to get a home inspection before you list your home. That way, you can avoid any hurdles should a buyer choose to have a home inspection. Getting these items fixed will play a big part in helping the buyer feel at ease with their decision in that they’re not about to invest in a money pit. You may also consider giving the buyer a home warranty, which is insurance for the systems and appliances of the home. Typically, they average at $400 and it’s paid at closing. Whatever you can do to communicate to the buyer that they’re buying the best and most put-together home will help.

6) When you get an offer from a buyer, make sure they’re serious. There are far too many wishy-washy buyers out there who, even after submitting an offer, tend to change their minds. Make sure that the buyer is qualified for the loan by speaking directly with the lender, make sure that their earnest deposit is sizable and be careful with too many contingencies. That could be a sign that they want a way out and they want it easy. The more full-proof a contract is, the less likely it is that you’re dealing with a fickle buyer.

7) Clean, clean, clean. You’ve moved your things out to your new place and it’s time to turn in the keys for one final round of inspections, called the pre-settlement walk-through. This is when the buyer and his/her agent do an inspection of the place, make sure the place is clean and ready for move-in. Far too often, and especially after a long and arduous day of moving, sellers forget to clean the house. This could cost you at settlement so hire someone if you can’t do it yourself.

By following this simple to-do list, you can make the transaction and easy and smooth-sailing one. Keep in mind that things do happen and sometimes, no matter how much you’ve done, it still takes longer than you had expected. All of this is in line with the uncertain market, but so much of that depends on your location and local economy. Sellers are at the bottom of this food chain at the moment, but you can climb your way up if all of the components - location, price, and house - are right on.

I’ve been obsessing lately about modular homes. There’s something very efficient about doing it this way. First of all, the house comes in several sections and, via a crane, they’re put together on site. Electrical and plumbing is done next as well as interior finishes, and you’re DONE! So, if you have a piece of land in mind somewhere, you may want to consider going with a modular home. It truly eradicates so much of the headache involved in building a home from scratch. Knowing who to work with is crucial and architects like Resolution 4 have all of the resources to make the process go as smoothly as possible with permits and various other contractors. For about $200/sqft you can construct a beautifully crafted modular home, material and labor included. Good luck finding the right patch of land : )

Check out the photos below and see why modular homes are the new trend in home construction and design:

We’re proud to unveil our premier video-podcast. Episode 1 features Adams Morgan. We’ll take a snapshot of bars, restaurant, businesses, architecture and real estate in Adams Morgan. Take a peek and come visit! Brought to you by Citylights Realty Group.