January 15th, 2010:
Builders Moving Toward Better Times
Lots of signs point to a recovery in the construction industry.
There are many new homes in Alexandria's Carlyle District.
With help from a federal tax break, both Lennar Corp. and KB Home posted fourth-quarter profits – the first time since 2007 that either has been in the black.
KB Home CEO Jeffrey Mezger said in a statement: “There are indications that housing market conditions may be stabilizing in some regions, reflecting, among other things, relatively high levels of affordability.”
Other signs that things are getting better:
- Residential investment increased 18.9 percent in the third quarter on a seasonally adjusted basis compared with the second quarter, according to the U.S. Commerce Department”s Bureau of Economic Analysis. It was the first increase in residential investment since the fourth quarter of 2005, the government said.
- Both KB Home and Lennar are buying land.
- As sales increase, both have reduced incentives they have been offering buyers.
- Mezger says KB is increasing prices.
If you’re looking for a newer home or condo in the Northern Virginia/Washington Metro area, you’ll want to check out this list of suggestions.
Source: The Los Angeles Times, Alejandro Lazo (01/13/2010)
30-Year Mortgage Rate Dips Slightly
Long-term mortgage interest fell for the
second-straight week as the 30-year fixed rate settled at an average of
5.06 percent compared to 5.09 percent a week ago, according to Freddie
Mac.
Other rates decreased as well: Fifteen-year
fixed loans dipped from 4.50 to 4.45 percent, and five-year ARMs sank
from 4.44 percent to 4.32 percent. However, rates for one-year ARMs
rose to 4.39 percent from 4.31 percent
Source: Chicago Sun-Times (01/15/2010)
Pending Home Sales Down from Surge but Higher than a Year Ago
Contract activity for pending home sales fell after a surge of activity in preceding months to beat the original deadline for the first-time home buyer tax credit but remains comfortably above a year ago, according to the National Association of Realtors(r).
The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in November, fell 16.0 percent to 96.0 from an upwardly revised 114.3 in October, but is 15.5 percent higher than November 2008 when it was 83.1.
Lawrence Yun, NAR chief economist, said a drop was expected. “It will be at least early spring before we see notable gains in sales activity as home buyers respond to the recently extended and expanded tax credit,” he said. “The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own. We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.”
Buyers who have a contract in place to purchase a primary residence by April 30, 2010, have until June 30, 2010, to finalize the transaction to qualify for the tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.
The PHSI in the Northeast dropped 25.7 percent to 74.4 in November but is 14.7 percent above a year ago. In the Midwest the index fell 25.7 percent to 82.0 but is 9.2 percent higher than November 2008. Pending home sales in the South fell 15.0 percent to an index of 97.8, but are 14.7 percent higher than a year ago. In the West the index declined 2.7 percent to 124.6 but is 21.4 percent above November 2008.
Yun projects an additional 900,000 first-time buyers will qualify for the extended tax credit in addition to about 2 million who have already purchased; 1.5 million repeat buyers also are expected to benefit from the credit.
“Many trade-up buyers, who have historically timed their purchase based on school-year considerations, will have to accelerate their buying plans if they need the tax credit to make a trade,” Yun said. Repeat buyers do not have to sell their existing home to qualify for the credit, but they must occupy the home they buy as their primary residence.
Yun added that mortgage interest rates cannot remain at rock-bottom levels for a sustained period and will likely inch higher in 2010. But the tax credit impact in the first half of the year and expected job growth impact in the second half will support home buying activity and absorb enough inventory to bring a rough balance between buyers and sellers. Home prices are expected to stabilize or even modestly rise as a result in 2010.
The National Association of Realtors(r), “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #
*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.
Existing-home sales for December will be reported January 25 and the next Pending Home Sales Index will be on February 2; release times are 10 a.m. EST.
Get Out and Do Something! Five Fun and Frugal Upcoming Events in Arlington, Virginia
Get out and do something! Even though it’s cold outside, there is always something to do in Arlington, Virginia. Below is a list of five fun, local, and free or low-cost events in Arlington that anyone can enjoy!
1) Children’s Theatre Festival
Event: Children’s Theatre Festival
Date/Time: Saturday, January 16, 11 am-5 pm
Location: Rosslyn Spectrum, 1611 N. Kent Street, Arlington, VA 22209
Event Description:
The Children’s Theatre Festival is a full day theatre event including exciting live performances, workshops, theatre activities and more. The theatre lobby will be filled with activities for children such as painting, drawing, and storytelling beginning at 11 am. There will be a performance of The Cat and the Seagull at 12 pm and again at 4pm. This theatre performance is based on The Story of the Seagull and the Cat Who Taught Her How to Fly, by Luis Sepulveda. At 1 pm there will be additional performances by Los Quetzalitos, the Children’s Mexican Dance Group, and Las Lunitas.
Contact and Other Info:
Admission to The Cat and the Seagull is $10.00. All other activities are free. Free Parking in the building garage. Food and drink will be available for sale throughout the festival. Call 703-548-3092 for more information or visit http://www.teatrodelaluna.org.
2) Painting Class for Beginners
Event: Painting Class for Beginners
Date/Time: Wednesday, January 20, 10 am – 12 pm
Location: Walter Reed Senior Center, 2909 16th Street South, Arlington, VA 22204
Event Description:
Learning how to paint is easier and more fun than ever! Longtime art teacher Blanche Kirchner is opening her painting class on Wednesday morning to help people who are new to the wonderful world of art creation and painting. Blanche will consult new artists on what materials they should bring and discuss the options of different media. This event will get anyone interested in art on the road to their own creative expression!
Contact and Other Info:
Cost is $24 for 4 sessions. Call Nelly Urbach at 703-228-0955 for more information. Sessions run Jan. 20 – Feb. 10 and Feb. 17 – March 10.
3) Comedy Club
Event: Comedy Club
Date/Time: Friday, January 22, 10:30 am – 11:30 am
Location: Aurora Hills Senior Center, 735 18th Street South, Arlington, VA 22202
Event Description:
Come to laugh and relive the classic comedy of times past at Aurora Hills. Guests will enjoy video and audio selections of The Honeymooners, I Love Lucy, Sid Caesar, Milton Berle, Bill Dana, and Burns and Allen. Later, guests can take a stab at sharing their own funny stories together. The event will be led by Mike Bloom, comedy book author and former write for Walt Disney pictures.
Contact and Other Info:
Cost is free. Contact Julie Albers at 703-228-5722 to register. The Comedy Club meets monthly on Fridays.
4) Under the Ice
Event: Under the Ice
Date/Time: Saturday, January 23, 2 pm-3 pm
Location: Gulf Branch Nature Center, 3608 N. Military Road, Arlington, VA 22207
Event Description:
Bring children ages 6 and up to a winter wonderland in the Gulf Branch Nature Center pond. Children will learn what’s lurking in that cold dark water and then go outside and discover what can be hauled up from its depths. The nature centers is nestled in lovely park setting and the event will be staffed with friendly and knowledgeable people who are there to help you and your family learn more about the great outdoors. This interactive event is an environmental education programs for both children and adults. Registration is required.
Contact and Other Info:
A fee of $3 will be due upon registration. Event is for children ages 6 and up, registered children only. Call 703-228-3403 or 703-228-4747 for more information .
5) Sudoku Mental Exercise Class
Event: Sudoku Mental Exercise Class
Date/Time: Wednesday, January 27, 1 pm – 3 pm
Location: Langston-Brown Senior Center, 2121 Culpeper Street. Arlington, VA 22207
Event Description:
Challenge yourself and learn to work Sudoku puzzles in your head using the systematic approach developed by instructor Nort Beckerman. This two-hour class will build brain function and cognitive abilities, including memory, while teaching strategies for solving Sudoku puzzles. The class is fun and stimulating. Guests must be registered for the event.
Contact and Other Info:
Cost is free. Contact Eva Mayor at 703-228-5321 to register for the event. .
