March 17th, 2010:
Sam Zell: Recovery Is Underway
Sam Zell, the billionaire investor who made his fortune in real estate, told Bloomberg News yesterday that he expects the U.S. housing market to start recovering at the end of 2010 and strengthen in the middle of 2011.
Zell, who according to the Forbes’ tally is the 237th richest person in the world, said, “Conditions are getting better, but there’s a lot of uncertainty. The real question is: Can confidence return enough so that what you call the green shoots can continue forward?”
Zell said he expects more turmoil in the commercial real estate business, pointing toward General Growth Properties Inc., the mall owner that is fighting a takeover, as an example.
Source: Bloomberg, Rita Nazareth (03/16/2010)
Did You Know: Value of Household Real Estate
By Danielle Hale, Research Economist
About Housing Units and Households
- After nine consecutive quarters of decline, the aggregate value of household real estate has increased for the third quarter in a row, though by a smaller amount than in the previous two quarters. The market value of household real estate as reported in the fourth quarter of 2009 is $16.6 trillion, up $890 billion since the first quarter according to Federal Reserve Flow of Funds data.
- While quarterly improvement is good news, residential real estate has yet to show year-over-year gains. The value of real estate is at a level last seen in 2003, meaning that many households have seen a substantial reduction in wealth from the 2006 peak.
- At its peak, the market value of residential real estate was $22.9 trillion. At that time, the replacement value of household real estate was $14.2 trillion as estimated by the Commerce Department. Current replacement value of household structures is estimated to be $13.3 trillion.
- These numbers are subject to revision. The Federal Reserve uses a weighted repeat-sales index of house prices to assess the market value of household real estate. Weighted repeat-sales price indexes help avoid measurement error found in a pure median price series which captures changes in the value of real estate but also changes in value if the types of properties for sale in one period are different than properties for sale in another period (i.e. larger or smaller; in better or worse locations; older or newer).
- One drawback of a weighted repeat-sales price index is that it can lead to substantial revision and these revisions can stretch back significantly to the past. In data released in December, figures for the aggregate value of household real estate changed, falling by as much as $2 trillion in 2009 and increasing by as much as $300 billion in 2004—nearly 2 percent. These revisions mean that the run-up in values and subsequent decline are even sharper than previously measured—according to this method.
Town of Vienna discusses Maple Ave. rezoning
The Vienna own Council will hold a work session at 8 p.m. Monday, March 22, at Town Hall to discuss mixed-Use zoning on Maple Avenue. These work sessions are open for the public to attend. Mixed-use zoning allows different types of uses (such as housing, commercial and office) to locate within the same area.
For more information, call the Planning and Zoning Department at 703-255-6341 or e-mail Planning and Zoning.
About the Tudor style
typical Tudor home
This architecture style was popular in the 1920s and 1930s and continues to be a mainstay in suburbs across the United States. The defining characteristics are half-timbering on bay windows and upper floors, and facades that are dominated by one or more steeply pitched cross gables. Patterned brick or stone walls are common, as are rounded doorways, multi-paned casement windows, and large stone chimneys.
A subtype of the Tudor Revival style is the Cotswold Cottage. With a sloping roof and a massive chimney at the front, a Cotswold Cottage may remind you of a picturesque storybook home.
illustration of a Tudor home
