Archive for the 'Local Real Esate Sales Numbers & Things' Category
This Just In: VA Supreme Court To Northern Virginia: No New Taxes!!
February 29th, 2008 Categories: Around Arlington County, Local Real Esate Sales Numbers & Things, Outside The Beltway, Sellers
Today the Virginia Supreme Court ruled that the Northern Virginia Transportation Authority is unconstitutional. You can read the entire decision here.
The NVTA was created by the Virginia General Assembly earlier this year, to levy taxes for Northern Virginia transportation projects. I wrote about these increases in more detail back on July.
In an unanimous opinion, the court said that legislators improperly delegated taxing powers to the unelected members of the NVTA.
This decisions affects the recent increase in the grantors/transfer tax homeowners pay when they sell their homes, in addition to some other taxes that were increased in in January to help pay for the $300 million needed in bonds to finance planned transportation projects.
It’s still unclear what happens next. It’s also unclear whether people who have paid the higher grantor tax will be refunded. If you fall into this category, contact your state representative or your title company for more information. As of this afternoon – no one really knows.
But late this afternoon, Arlington County released a press release urging the Virginia General Assembly to “act quickly” to fund the project already planned.
In Arlington, these project are:
- Rosslyn Metro station access improvements
- Columbia Pike streetcar
- Crystal City/Potomac Yard transit improvements
- Columbia Pike improvements
- Re-alignment of existing roadway on Wilson Blvd
- Old Dominion Drive multi-modal improvements
- Lee Highway at Harrison Street improvements
More broadly, the other major Northern Virginia projects impacted by this decision are:
$28M for improvements to the Fairfax County Parkway
$15M to widen the Prince William Parkway from four lanes to six lanes between Hoadly Road & Old Bridge Road
$11M for improves bus service between the Braddock Road metro stop in Alexandria and the Crystal City/Potomac Yard corridor.
What’s not been said here is that Metro-to-Dulles project will have even more problems to deal with as the projects struggles to get started. Once again, the Northern Virginia commuter is left stranded by its government in Richmond.
People who relocate here from other parts of the country always ask me why there is no metro extending to areas where people really live in affordable neighborhoods. I always tell them– it’s because the capital of Virginia is in Richmond. And don’t you ever forget that.
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Arlington County Plans to Raise Your Property Tax: Time To Have Your Say
February 27th, 2008 Categories: Around Arlington County, Local Real Esate Sales Numbers & Things, Sellers
Mark your calendars for public hearing at the county.
WHEN: March 27, 2008 (Budget) March 29, 2008 (Tax rate)
TIME: 7 PM, scheduled (could be sooner if other agenda items end quickly)
WHERE: Room 307 #1 Courthouse Plaza, 2100 Clarendon BLVD.
What Are The County’s Plan:
1. Your Arlington 2008 real estate tax assessment increases 3.7% from your 2007 tax assessment.
2. Raise your tax rate to .838 per $100 of assessed value. A 6.2% increase over the 2007 tax rate of .789 per $100.
What Does This Mean To You?
Your real estate property tax is made of of two parts. The first is the value of your home (your tax assessment) which varies widely in a county made up of single family homes, townhomes and condo homes. The second, is the rate at which the county taxes that assessed value. Your property taxes is the major source of the local government’s revenue stream.
If the county goes forward to raise these rates, your 2008 property taxes will be going up. If you plan to attend the meeting & want to have a say, you’ll have to sign up before hand. Here are the county’s procedures on how to do that. You can even register online here. If you have any further questions: call the County Clerk’s office at 703–228–3130.
Copy of proposed resolution fixing real estate tax rate for CY 2008 is on file and available for review in Office of Clerk to County Board, Room 300, #1 Courthouse Plaza, 2100 Clarendon Boulevard, weekdays between 8 a.m. and 5 p.m. A copy of the county’s proposed budget- which is driving this tax increase can also be found on the county’s web site.
The Local Governments’ Dirty Little Secret
Most of the local municipalities in the area will be raising local real estate taxes in 2008. Many homeowners wonder how that can happen when they are seeing their neighbor’s home for sale sit on the market and ultimately sell for much less than they would have a few years ago and every night the news report about this falling real estate market.
Well– one of the residual effects of the current real estate market is that the local governments are getting less tax revenue. Every time there is a “short sale” property on the market in your neighborhood, that is one less home the local government will be able to tax. And every time that house for sale cuts its price, that is less tax money the local government will collect to support it’s local services.
Even if the local government cuts its budget, it will need to make up for that lost tax revenue somewhere- and that somewhere is mostly from the other homeowners who think that this down-turn in the real estate market is not about them. Because, after all, they are responsible and pay their mortgage on time and every month.
The local government loved the last real estate market when home prices where raising at 15–20% every year. It was a time when homeowners found their tax bill rise just as quickly. The local governments all found a way to use that money. Now it’s hard to stop spending that money.
The other dirty little secret is that most of the counties inside the beltway have shown a rise in average sales price of property. That’s right– a rise. We have such a spotty market– it changes zip code to zip code. Some zip code have seen increase, while others have seen decreases. But…on average, we have seen prices rise.
What’s a homeowner to do?
Our taxes increase in sellers market, our taxes increase in a buyers market. Maybe it is better to rent! Oh wait– rents have gone up more than 30% since 2004. Someone has to pay for a landlord’s tax increase.
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Is America Depressed?
January 23rd, 2008 Categories: Local Real Esate Sales Numbers & Things, Mortgages & Loans
I turned on the TV news on Tuesday morning to the news that the stock market was down 400 points and the Fed has cut the interest rate almost a whole point!
My first thought was: Our government is really scared.
This is the same administration that has been wearing rose colored glasses for the past year. They kept saying that the market will work itself out. It’s the hands off administration that thinks its only job is to solve the crisis in the Middle East- one that’s been going on for thousands of year. I never understood why every American president feels that they are going to be the one to solve a conflict that has been going on for centuries. (But that’s for another day.)
Then I remembered it’s an election year. It’s like a game of musical chairs for the party holding office in the White House when the music stops playing. They will be seen as the one left standing.
I am not a student of economics by any means. And every time I write about the mortgage “crisis” I do a lot of homework and research about what I’m writing. This time I’m just writing about what I see and feel.
I can’t help but wonder if the American public is depressed.
We’re tired of this current state of affairs. In the past few years everything we pay for has gone up in price: gas, food, taxes and health care. Everything except our paychecks. We feel like that hamster in the tread mill– working hard just to stay in place.
Our young men and women are overseas at war. We don’t know who to believe about what’s going on over there. We have sadly come to the realization that we are going to be there for a long time. Even if we still want it to end.
Then we start hearing these presidential candidates telling us about all our problems and how they are going to solve them. They talk about hope and change and new beginnings. We didn’t know we had it so bad until they kept reminding us.
We see our neighbors losing their homes because they didn’t understand what they were getting into and think: Am I next?
We hear about layoffs, and talk about recessions and hope that we can keep our jobs.
And it’s winter and cold and dark.
No wonder we’re depressed. But we can’t take prozac because we have no health insurance.
Now the government comes to the rescue with plans of stimulus packages and temporary tax relief to “jump start” the economy. Our legislators think that putting $200 in everyone’s pocket will solve our problems. Or that cutting interest rates is going to encourage people to buy a home. Or are they just worried about getting re-elected?
I think the American public is ready for their next president. We are ready for something new and bold and different. That’s what will get us out of our funk. Is it November yet?
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5 Reasons Why Bankers Should Never Sell Real Estate
January 8th, 2008 Categories: Buyers, Local Real Esate Sales Numbers & Things, Mortgages & Loans
The first week of 2008 has come and gone and I find myself busy with work. Which surprises me because it’s Janaury for gosh sakes. No one likes to buy real estate in January. But that’s really not what’s happening. There are people out there buying real estate. I think it’s smart to buy real estate in January in a cold state. Just like it’s good to buy real estate in August in Florida. Turns out there is little competition with other buyers.
Now, you might be thinking– what competition? There are no buyers out there anyway. Well– I have learned the secret rule of real estate: As soon as you want a property– so does someone else. If you are someone planning to buy real estate, don’t wait forever: there are other buyers out there.
I don’t know what is going to happen in the DC real estate market in 2008. I can only speculate. But as someone who works in the business everyday– I don’t see many changes in this market.
- Interest rates are still reasonably low: still around 6%
- Inventory of homes is good: there is a lot to chose from
- Sellers still want to sell their homes: people want to get on with their lives
So: what are your plans for your life in 2008? Is this the year you take that step to advance it? or is it just going to be more of the same. Come on, open the door to the rest of your life.
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3Q07 Arlington Sales: 1,831 Reasons Why Arlington Beats the National Trend
November 20th, 2007 Categories: Around Arlington County, Ballston, Buyers, Clarendon, Columbia Pike, Courthouse, Crystal City, East Falls Church, Local Real Esate Sales Numbers & Things, Nauck, Pentagon City, Real Estate News, Rossyln, Sellers, Shirlington, Virginia Square
I haven’t been known to publish much Arlington real estate sales data on this blog. Mostly because I’m still testing the best way to present it. So bear with me while I give you some numbers. Sooner or later I’ll find a format that I like.
And don’t worry– I’m not going to list 1,831 lines of data. But– you know what that number is? It’s a way to get your attention. NVAR released it’s 3Q07 sales data. They publish all sorts of interesting and not so interesting stuff. It depends on your point of view. If you want to see it all– by county for the metropolitan area, by zip code, I encourage you to visit their website to get your number fix.
But, if you don’t have the time and want to know the Arlington sales for 3Q07, stick around.
Note– these numbers does not discriminate between condos, townhomes and single family homes.
1,831 – the number of homes still on the market 9.30.07 – the last day of the quarter.
45 – the average number of days on the market for all Arlington homes sold in the third quarter of 2007.
$571,900 - the average sales price for homes sold in Arlington.
95.9% is the average amount of money a person got in their sold price when compared to their original list price.
11.1% – the average increase– yes, I said increase, in the sales prices for Arlington homes sold in 3Q07 when compared to the 3Q06.
Now, these numbers are put together by economists employed by the Realtors Association. So you would expect a certain spin. Well, the data doesn’t spin. Sometimes my head spins when I have to look at all this data- but the data, in itself, doesn’t spin.
What does have spin– after all, we are in Washington, DC, where everything has spin; where the term spin doctor originated; where people make a very good business out of being Spin Drs, but I digress. What does have spin: the economists’ opinion. And what is their spin? That on a scale of 1–5 where 1 is a total buyer’s market and 5 is a total seller’s market, Arlington is a 3. Yes - it’s right in the middle.
I don’t depend on an economist’s opinion to tell me how the Arlington real estate market is running. After all– I’m in the middle of the market everyday. I know how I feel about the market. So I look at the data– toss is around in my head. Then I agree or disagree.
This month I agree.
Here’s why:
- I’ve been busy all year with people interested in buying Arlington real estate;
- All my appraisals for my sales have come in OVER the sales price;
- I have competed– yes competed– with other buyer agents for the same listing;
- Arlington unemployment is still under 2% (1.9% to be exact). That’s considered a worker’s shortage. So people are moving here with new jobs.
I spend a good amount of time trying to make this chart look pretty and fancy and use colors that match my blog. I just have to post it here. It is all the Arlington zip codes and the percent change of sales of 3Q07 sales when compared to 3Q06 sales.
This chart says that all the zip codes in Arlington, except for Shirlington, have seen an increase in the average sales price when you compare 3Q07 to 3Q06. Why Shirlington? After all– I write about Shirlington all the time and what a great place it is to live. Well I don’t have the answer for that right now- but I’m going to look a little deeper into it. I suspect it may have something to do with Fairlington sales, which make up the largest part of the sales.
Just in case you can’t read the chart- here are the data points:
- 22201: 11.79%
- 22202: 2.9%
- 22203: 2.72%
- 22204: 2.39%
- 22205: 12.65%
- 22206: -4.23%
- 22207: 17.26%
- 22209: 50.76%
- 22213: 3.65%
So– if you are waiting for the prices to drop in Arlington, maybe Arlington isn’t for you. Maybe you aren’t ready to buy. Maybe it’s a lot of things.
But I can tell you this– it isn’t because the real estate market is bad in Arlington. The data doesn’t lie.
| Discussion: 8 Comments »
Let’s Take a Real Look At Interest Rates
November 13th, 2007 Categories: Buyers, Local Real Esate Sales Numbers & Things, Mortgages & Loans, Real Estate News
A few days ago I wrote a post on the history of interest rates over the last 30 years. I talked about trends and fluctuations. The chart from that post showed the trends in mortgage interest rates over the past 30 years have been in a steady decline and are now leveling of.
While it’s easy to look back over time to see that this is one of the best time to buy real estate, most people don’t realize that there is also a best time of YEAR to buy real estate.
To prove my point, I used Freddie Mac data from 2006 & 2007. I charted the monthly average for both years (Nov & Dec 07 are null points) and found that in 2007, interest rates have actually been lower for most of the year when compared to 2006.
What I found interesting is that in both years, interest rates peaked in July for that year and then decreased for the remaining year.
What does this all mean? If you are most concerned about the interest rate of your next mortgage- don’t wait to buy in the spring, buy now.
Take a browse through the MLS to see what’s on the market and email me with your questions. Even better- sign up for your own email alerts for new listings!
| Discussion: 3 Comments »
You May Qualify To Save $600 on Your Arlington County Property Taxes
July 25th, 2007 Categories: Around Arlington County, Local Real Esate Sales Numbers & Things, Real Estate News
The Arlington County Board is continuing its Grant Programs for another year- saving certain property owners some money on their annual property taxes. There are two different programs and you may qualify for either one but not both.
With the recent raise in property taxes over the past 5 years, this is a great program for those who qualify.
The Homeowner Grant Program
The Homeowner Grant Program provides a $600 grant plus $75 for each dependent if you qualify. Homeowners are eligible if:
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- Combined household income does not exceed $77,407
- Assets do not exceed $340,000 (doe not include your home & retirement accounts)
- All owners reside in the home as their sole residence, and
- They own and live in their Arlington home as of December 31st 2006.
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The Tax grant is not automatic and you have to apply by filing an application by DECEMBER 31, 2007.
The Real Estate Tax Relief Program
The Real Estate Tax Relief Program reduces or eliminates payment of real estate taxes for homeowners who are 65 or older or permanently disabled. Homeowners may qualify if:
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All homeowners (excluding spouse) are 65 or older or permanently disabled
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Household income does not exceed $95,515
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Assets do not exceed $540,000 (doe not include your home)
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All owners reside in the home as their sole residence, and
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They own and live in their Arlington home as of December 31st, 1006.
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The tax relief is also not automatic and you must apply by filing an application by AUGUST 15, 2007.
For more information, you can contact Arlington’s Dept of Human Services
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- by calling 703–228–1350, or
- visit in person at the County’s offices at 3033 Wilson Blvd. Suite 300A or,
- visit their web site Arlington Tax Relief.
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These are two different programs with TWO DIFFERENT DEADLINES. The people that work for the county are very helpful. Don’t hesitate to call or visit them to ask for help with the application.
| Discussion: 3 Comments »
Selling Your Home in Virginia Is Going To Get More Expensive
July 16th, 2007 Categories: Commuting, Local Real Esate Sales Numbers & Things, Real Estate News, Sellers
Last week the Northern Virginia Transportation Authority (NVTA) voted to increase seven taxes in Northern Virginia to raise $300 million in tax revenues for local transportation projects.
The most important tax for residents selling their home is an increase in the Grantor’s Tax from $1 per $1,000 of your sales price to $5 per $1,000 of your sales price. The other taxes relate to vehicle registration, new car tax and various taxes on cars. Here are the all tax increases:
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40 cents per $100 increase in the real estate Grantor’s tax
2 percent increase in the rental car tax
2 percent increase in the hotel/motel occupancy tax
$10 increase in the vehicle safety inspection fee
1 percent initial vehicle registration fee (for new car purchases or those moving into the region)
5 percent sales tax on auto repairs
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$10 regional auto registration fee
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This new tax is slated to take effect January 1, 2008. It will be challenged in court– so stay tuned!
What is the Grantor’s Tax?
The Grantor’s Tax or Transfer Tax is the tax a seller pays to the county at closing. It currently is $1/$1,000 of the sales price of your home. For the average Arlington home– $739,000 the tax will increase from $739 to $3,695. It is a one time tax and only paid when you sell your home.
Why Did NVTA Raise the Tax?
Governor Kaine, as part of his legislative agenda, promoted a new transportation bill – the first in 21 years. The 21 year debate continued in the Virginia General Assembly on whether to increase taxes to raise funding for transportation projects. With most of the debate coming from the delegates outside the areas where transportation are critical (i.e, Northern Virginia and the Hampton Roads area) the bill was once again doomed. As a compromise, the General Assembly passed authority to the NVTA to raise local taxes for their own road projects. Board members from Loudon County and Manassas are questioning the General Assembly’s authority to pass its ability to raise taxes to the NVTA and may be taking it to court.
What Is the NVTA?
The NVTA was created as part of the transportation plan passed by the General Assembly and signed into law by Gov. Kaine. It is a 14–member panel made up of nine elected officials from the Northern Virginia jurisdiction, two members appointed by the House of Delegates, one appointed the Senate and two by the governor.
Arlington County Board Member Christopher Zimmerman is Arlington’s designated official on the panel and it’s chairman.
The purpose of this panel is to identify transportation projects in the Northern Virginia region and raise up to $300M/yr in tax revenue to fund its project. The idea here is causation taxing– tax the people who are living with the problem. Only they should pay for the issue– not the people in the whole state. Maybe its time for Northern Virginia to follow the lead from West Virginia and split from Richmond?
Good News/Bad News
The good news is that the politicians in Richmond have moved forward in addressing the issue of our congested roads in Northern Virginia. I commend Governor Kaine for working out a compromise that our past governors didn’t have the backbone to do.
The bad news is that only the local area is paying for it. We here in Northern Virginia are so suffocated with the traffic gridlock that we are almost grateful our elected officials are finally going to do something that most of us are willing to accept this extra tax burden while the rest of the state’s residents escape any changes. The traffic in Northern Virginia effects everything we do– our whole quality of life. The NVTA has managed to fine a way to raise $300M in tax revenue without raising daily taxes like the sales tax, gas tax or income tax.
Where is the Money Going?
$300 million is a lot of money. The large projects sited to by funded with this money is short. But it’s a start:
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- $28M for improvements to the Fairfax County Parkway
- $15M to widen the Prince William Parkway from four lanes to six lanes between Hoadly Road & Old Bridge Road
- $11M for improves bus service between the Braddock Road metro stop in Alexandria and the Crystal City/Potomac Yard corridor
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I am a big fan of mass transit– and if the politicians don’t focus on increasing the metro line or the VRE– our transportation issues will continue no matter how wide our road are.
What Does This Mean to Me?
If you are selling your home in Northern Virginia– you can save some money if you close before January 1, 2008. It’s important to price is aggressively to sell before the end of the year.
If you are buying a home in Northern Virginia– and can close before January 1, 2008– it’s a negotiating tool for offer.
This isn’t over– so stay tuned.
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