Comments (0)

By Kim, June 18, 2010

This report covers Alexandria, Arlington, Fairfax County and the towns within.

A total of 1,957 homes sold in May 2010, an increase of almost 9% from May 2009 home sales of 1,803.

Active listings decreased by about 4% from last year, with 7,710 active listings in May, compared with 8,050 homes available in May 2009. The average days on market (DOM) (for sold homes) decreased by 47% to 40 days, compared with 76 days in May 2009.

Sales prices rose by about 6% compared with last year. The average sales price this May was $460,828, compared with last May’s average of $433,257.? ?The median sales price – usually a more accurate indicator – was $404,000, which is an increase of almost 8% compared with May 2009’s median price of $375,000.

The number of pending home sales decreased by 28% with 1,901 sales pending compared to 2,637 in May 2009. This was an expected result of contract signings pulled into April by the tax credits, which expired April 30.

My take on the market in the area is that it’s still strong, driven by the ridiculously low interest rates (under 5% fixed, and 3.5% for 5/1 ARMs) which look to be with us for at least the next couple of months as signs of inflation remain low. If you’re on the fence about buying, I’d say it’s time to jump.

Comments (0)

By Kim, May 12, 2010

Here are the April 2010 home sales activity for Northern Virginia – including Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton:

A total of 1,793 homes sold, 16% more than April 2009 home sales of 1,544 and the 21stth consecutive month of higher year-over-year sales. And for the 25th straight month, the number of pending home sales increased over the same period as the year before – 12% this month.

Active listings increased only sightly from last year, with 8,327 active listings in April, compared with 8,234 homes available in April 2009. The  “inventory,” as we real estate people refer to homes available for sale, is less than five months’ worth of homes. The industry generally considers anything under six months’ inventory to represent a “sellers’ market,” although I think it’s more balanced.

The average days on market (DOM) for homes in decreased to 45 days, compared with 85 days a year ago. More importantly for most sellers, more than 70% of homes sold went under contract in less than 30 days.

The average sales price in April rose by 12% from last year, to $455,686, while the median price rose 9% to $390,000. The year-to-date increase in average prices is on the order of 12%.

Now that the federal tax rebate programs have ended, let’s see where the market goes in May and June, usually the prime time for home sales. I would expect actual sales (closings) to go up, but I have no idea what will happen with pending sales. Will buyers keep on coming?

Comments (2)

By Kim, May 11, 2010

I’m sure all of you denizens of the Springfield, Virginia area are eager for news of what’s going on with the big project to redevelop Springfield Mall into a bustling multipurpose, mixed-use retail/hotel/office/residential complex, as advertised starting in about 2006.

And I wish I could tell you. I’ve been trying to keep up with this project, which is so critical to the future of the area, but . . . it’s . . . taking . . . a . . . lot . . . of . . . time.

My last post on the subject, about three months ago, included information from Supervisor Jeff McKay’s office to the effect that construction on Phase One, including a new food court, movie theater and indoor renovations, should begin in April or May. Not happening. I was there yesterday and  the only renovations to be seen are a small bit of torn up floor tiles, and a single set of the old off-white railings repainted grey, outside the interior Macy’s entrance upstairs. I’m told this work is preparatory to a test of some minor work planned for the rest of the mall interior.

McKay’s office remains confident that the project is on track because the various permit applications and meetings are continuing. The project received County rezoning approval last July, but McKay’s office says the various permitting requirements for a project of this magnitude are quite time-consuming.

The mall’s owner, Vornado Realty Trust, appears to be in strong financial condition despite the current state of the commercial real estate market. They are making a profit – unlike General Growth, the owner of Landmark Mall, who also had big plans but just went through the largest bankruptcy in US history.

However, Vornado has just this spring defaulted on mortgages for at least three projects – Springfield Mall ($164 million), High Point (NC) Merchandise Mart ($217 million) and The Cannery in San Francisco ($18 million). It is widely assumed that these defaults are strategic, designed to force the renegotiation of the mortgages for Vornado’s benefit, and that they want to continue to hold, manage and renovate the properties more or less as originally planned. That would make hardball business sense, I suppose, but it’s not the kind of dealing that would make me pleased to have Vornado as a major player in my town.

Update 5/12/2010:  A scenario for your consideration – Vornado’s mortgage on the Mall is nonrecourse debt, meaning Vornado is not liable for making its lenders whole if the property is worth less than the mortgage. This is different from residential mortgages in most places, where the lender can file a judgment against you if you default, and recover losses from other assets you might have or acquire.

So, commercial property goes into general decline (which it has), plus Vornado “manages” the property in such a way as to make it less valuable – i.e., by losing most of the tenants, which seems to have been accomplished. (Remember, the anchor stores – Target, Macy’s Penney’s – are not tenants; they own their stores.) Then, Vornado defaults on it’s now much-less-valuable property – or threatens to. The lender, faced with renegotiating the debt or taking a possibly even bigger loss through foreclosure and resale, is now over a barrel – even if it forecloses and sells the property to the highest bidder, the highest bidder could still be Vornado or some shell company they own.

Hmmm . . . .

More news as I get it.

Comments (0)

By Kim, April 29, 2010

Landsdowne is a community of 619 homes — a mix of classically styled single family dwellings and three different sizes and styles of townhomes. Builders included Pulte Homes and Richmond American Homes. Landsdowne is located 3 miles south of Springfield Mall and 5.5 miles south of the Capital Beltway/Alexandria, convenient to Fort Belvoir, Kingstowne, Olde Towne Alexandria, and Springfield.

The community offers easy access to Interstates 395/495 and to the Franconia-Springfield and Van Dorn Street Metro stations. Bus service is also available in the community. Landsdowne residents enjoy an easy commute to all regional employment centers. Landsdowne offers a swimming pool, tennis and basketball courts, several tot lots, a multi use court, and our walking path. Many beautiful park style seating areas are located throughout the community.

View Landsdowne in a larger map

Comments (0)

By Kim, April 29, 2010

Island Creek is a planned community of single-family homes, town homes and condominiums in southeastern Fairfax County, Virginia. Located off Beulah Street, Island Creek is less than 3 miles from the Franconia-Springfield metro station and Fort Belvoir. Island Creek’s amenities include a community pool, 4 tennis courts, several basketball courts and children’s play areas conveniently located throughout the community. Island Creek Elementary School is located within walking distance of the community. The Springfield and Landmark Malls, the Kingstown Library and post office, two day care centers, schools and three (soon to be four) major food stores are all within 10 minutes driving distance.

The Kingstowne Towne Center houses a Safeway, a movie theatre, Community Bank, Macaroni Grill, Chipotle, several restaurants, Panera Bread, Wolf Camera, T.J. Maxx, Home Goods and World Market. Across the street next to the post office are a Toys-R-Us, Kohls, Walmart, and La-Z-Boy. A mile south on Beulah Road is the Landsdowne Center with several good shops and restaurants, and a Wegmans supermarket is under construction (est completion 2012).

The tract of land that Island Creek is built on was part of the Hunter Tract – 1000  acres of land granted to John Thomas before 1678 and one of the first Royal Patents in Fairfax County. The land grant was adjacent to the Long Branch creek and the whole general area was referred to as Island Creek in 1694, possibly due to its location within Accotink, Dogue and Long Branch creeks.

Daniel McCarty purchased the site  in the early 18th century. The land is situated very near the ruins of the ancient Truro Parish Glebe, later becoming Pohick Church. The land was originally surveyed by John West. Some of the other 18th century landowners in adjacent areas were James Whaley, Richard Chichester, William Fairfax, Charles Green and Thomas Ousley.

In an 1878 survey, the local residents were Samuel Nevitt, Fred Graves, E. Cash, George Wiley and Mrs. Lamoyne. The present tract is very near the old Long Branch Station on the Alexandria and Fredericksburg Railroad. Many of the street names within the community are also based on these historic references.

View island Creek in a larger map

Comments (0)

By Kim, April 29, 2010

Amberleigh is a tree-lined community of nearly 500 town homes in Fairfax County, Virginia, between Springfield and Kingstowne. The community has easy access to Interstates I-95, I-395, I-495 and the Fairfax County Parkway, as well a ten minute walk to Washington’s Metrorail System, and the Virginia Railway Express, providing an easy commute to the Washington area’s major employment centers.

Although convenient to town, Amberleigh is nestled back in a wooded area, giving the community a small town feel. Amberleigh is an ideal location to live for professionals in the big city as well as families with small children. The area is a quiet and comfortable setting to relax after a hard days work as well as a great park-filled place to raise children.

View Amberleigh in a larger map

Comments (0)

By Kim, April 9, 2010

The Springfield Connection reported today that the Fairfax County Board of Supervisors approved a motion from Supervisor Jeff McKay (D-Lee) at the board’s March 23 meeting to expedite the public hearing process for a proffered condition amendment filed by the Kingstowne Residential Owners Corporation (KROC). The amendment calls for the county to assume control of the stormwater facilities within the Kingstowne Community.

“Kingstowne, because of how and when it was built, is an anomaly in the county as far as stormwater is concerned,” McKay said. “It is very expensive for the HOA, and in turn for the residents. I am glad I was able to work with the county and the community on a solution. This will go a long way in protecting the residents of Kingstowne.”

The motion sought to speed up the public process for the amendment so that a decision could be reached quickly after a long and drawn-out process. According to KROC President Kathleen Snyder, the process to change the current setup began more than four years ago, but in reality, this is a problem that was nearly three decades in the making. Snyder said that construction on the Kingstowne community began 25 years ago, and at the time, stormwater management ponds were only beginning to be built, so the homeowners association took care of the ponds. However, because the community is so large and sprawling, it took nearly 15 years to complete construction. As a result, the size and scope of the community changed drastically while county policy on stormwater ponds remained the same and the now massive community was on its own with the ponds.

The main issue for KROC’s Snyder is that all Fairfax County residents pay for the maintenance of stormwater retention ponds through a $0.02 allotment from real estate taxes. But Kingstowne’s residents were being taxed twice, she said, as area residents were paying county taxes on the ponds while simultaneously paying HOA fees to maintain them, in addition to private insurance costs. The system was not only unfair because of the double taxation, Snyder said, but also because high HOA fees could keep new residents out and affect the quality of life for current ones.

The ponds in Kingstowne are also taking on water from other neighborhoods that are not within the Kingstowne community. This means that while being taxed twice for the same service, the community is also paying for the management of water that is not even theirs. KROC paid for engineering studies to be performed on the ponds to prove this to the county.

After four years research, KROC was finally able to submit the application for the proffered condition amendment March 1. According too McKay, the Lee District Land Use Committee vetted, approved and recommended the plan for board approval, and per tradition, McKay agreed to the decision that the committee made. The public hearing before the Planning Commission for the amendment is currently set for April 29, and before McKay’s motion, no public hearing before the Board of Supervisors was scheduled. However, the hearing is now slated for May 11.

Comments (4)

By Kim, February 2, 2010

I always tell my clients to be careful what they wish for when they get excited about a home with “no HOA!”  (homeowners’ association). I’ve seen many neighborhoods with incredibly ugly remodeling jobs, disgustingly messy and unkempt yards, and all kinds of commercial vehicles on the streets, including taxis and limos. Now Fairfax County has done something to at least help with the parked vehicle problems.

Yesterday (Feb 1) changes to Section 82-5-7 of the Fairfax County Code, which prohibits parking of commercial vehicles on streets in residential districts, became effective. The changes better define “commercial vehicles” and should improve parking enforcement of large/commercial vehicles parking on residential streets. (Parking in private driveways is not regulated by the County, but may be covered by homeowners’ or condominium owners’ rules or covenants.)

Here is a summary of the changes:

• All taxicabs and limousines must be licensed and registered in the Commonwealth of Virginia as a taxicab or limousine, and only one may be parked by each household.
• “Commercial vehicles”  include:
  • Any vehicle licensed as a common or contract carrier or limousine (except as above).
  • Vehicles that exceed any of these size and weight limits:
    • 21 feet long, or
    • 8 feet high including appurtenances (e.g. ladders), or
    • 8 1/2 feet wide, or
    • weighing 12,000 pounds.
    • Vehicles exempted from these size and weight limits are: commercial vehicles used by public service companies (including cable), vehicles for propane gas service, watercraft or motor homes, school buses, vehicles driven by or used for transporting persons with disabilities, moving vans (for 48 hours). These vehicles can park in a residential area unless restricted elsewhere in the Code, e.g., boats and motor homes are not allowed to park in areas that are Community Parking Districts.
  • Vehicles carrying commercial freight in plain view.
  • Trailers or semitrailers except camper, boat or single axle utility.
  • Any vehicle with 3 or more axles.
• Where a service road is adjacent to a residentially zoned area, parking restrictions apply to the side of the service road that is adjacent to the residential area except as otherwise provided in section 82-5-37(5). This allows prohibiting commercial parking on that side of the street which is zoned for a use other than residential to further the residential character of the abutting community.

The restrictions do not apply to commercial vehicles when temporarily parked while performing work or service.

Useful Links:

• Approved Code Amendment
• Notable vehicles that exceed the new restrictions (some 2009 pickup truck body styles exceed the restrictions).
• Notable vehicles that do not exceed the new restrictions.
• Field Photos: Examples of vehicles that do and do not exceed the restrictions.