Amazon recently announced their selection of Crystal City – Arlington, VA as the future home of one of their two additional headquarters. The news was met with delight and trepidation by the Northern Virginia and general Metro community.

Homeowners, naturally, had visions of dollar bills dancing through their heads as they anticipated accelerated appreciation of their homes. Commuters  feared traffic congestion beyond present levels. Developers envisioned windfall profits.

Increased employment, greater appreciation, and profits, oh my!

A few facts (as presented by NVAR and their panel of experts during their December 12 presentation on the “Amazon Effect” at George Mason Business):

• Amazon HQ2 will be located in Crystal City which is part of South Arlington. That areas has been renamed, National Landing.
• The HQ2 timeframe will be 16 years to complete the process.
• 25,000 employees (will be really 38,000 jobs) are expected.
• 75% of the effect will be “inside the Beltway.”
• The Washington, D.C. area is larger and denser than Seattle.
• The absorption rate is expected to be about 1% per year over the 16 years.
• The biggest bump in real estate values came to the Arlington area in early fall 2018.
• The arrival of Amazon does not increase the housing demand significantly over time.
• The residential markets with greatest impact will be Arlington and Alexandria.
• The average Amazon employee income is expected to be approximately $150,000
• The employees will flock to the best schools.
• The Amazon Effect will not only impact residential, but commercial properties, as well,
• Existing real estate problems of supply and affordability will remain.

The six experts all warned to guard against the “hype wave” and to be strategic.

The KEY: this will be a 16 year project, which according to the experts, will be absorbed within ordinary area growth.

The question asked almost daily, “How will this event impact our real estate value?” is best answered by, “The impact happened at the anticipation phase.”

Most art is delicate and potentially fragile. How you handle your art during and after a move can determine your future enjoyment of the piece(s) and their value.

For the past 20 years, we had hung a beautiful limited edition print on a wall in the basement. This was mostly because the wall was large enough for the piece and because we had tired of it in our every day living space. Several says ago, during a discussion about art and artists, I took a close look at the piece. I discovered some tiny black dots on the Japon paper.

The print, framed by conservation standards, was installed on an exterior below-grade wall. Regardless of the finish level of the wall, the structural cinder block must get moisture that was trapped by the art. SO now, mildew in the  paper of a pretty valuable piece of art.

Naturally, my first thought was to contact an art conservator and organize its restoration. This is where a whole new world of art services came alive. Art conservators do not conserve paper. They restore/clean paintings – oils, linen, canvas, and the like. Paper restorers handle prints on paper. Yes, the same experts that restore books, restore art prints.

You know that some art will appreciate over time. We just never know what piece(s) might become valuable in the future. Most people buy art for its aesthetic value and not so much for investment. However, sometimes artists gain in notoriety and if their work survives long enough in good condition, the value could increase.

If you want to both enjoy and preserve your art, handle it carefully and install it with consideration of potential moisture (even condensation that forms inside a sealed frame).

Should you need a conservator of antiques, paintings or paper, we have now amassed a list of conservators who can help and/or direct you to solving your. Some have performed work for us personally, others have been recommended and have significant credentials. Give us a call and we will gladly share our list.

(read this to the end – see for your self)

The news about the Federal Reserve and the Fed Funds Rate is often touted as a reason to anticipate increased mortgage interest rates. As with much of the media, “news” can be manipulated to stimulate emotional reactions from joy to fear. The fear in this case would be of increasing interest rates.

What actually happens when the “Fed” raises the ‘Fed Funds Rate’? Well, those rates apply to funds that banks borrow from the Federal Reserve for periods less than 90 days, but longer than one day. Raising the rate by .25% on banks does not necessarily affect mortgage rates at all.

The Federal Reserve serves an important function in the United States – insuring deposits from bank default (within established limits) and monitoring and controlling monetary policy in hopes of maintain a stable economy with limited fluctuation. Monetary policy is complex and very carefully monitored by financial institutions and corporations.

Borrowing money to purchase a home typically falls under the term, mortgage. Mortgages consist of two components – principal and interest. While we all know about principal, the interest component often seems like hocus pocus in a black box. Interest is the amount that lenders charge for the privilege of lending money.

Because mortgages are typically a long-term commitment on the part of the lender, economic projections are used to set prevailing interest rates. Lenders look at the risk of inflation and the potential opportunity cost of leaving their money at a set rate for a prolonged period of time.

Mortgage interest rates are typically affected by long term bond yields and the 10-year Treasury bills. Obviously, every aspect of the monetary markets trickle down to affect interest rates, however, mortgage rates are not as sensitive to the “Fed Rate” as they are to the Treasuries or Bond Yields.

Why does this information matter to you? You are barraged by offers, threats, and disinformation to act “quickly” to refinance or to buy now. Yet, the reality is that mortgage markets are more insulated than reflected in the news.

However . . . depending on your sensitivity to rate fluctuations, a small move in mortgage interest can affect mortgage qualification. The best solution is to work with a knowledgeable lender who can guide you with correct information with which you can make good decisions.

If you are thinking of buying or refinancing, we have an excellent list of lenders who have worked for our clients who produce loans on time and on budget. Call us today.

We invest in our agents and in our community

Whether performing in a production, providing gifts at Christmas, helping with therapeutic horseback riding, supporting alumni affairs or school sports, serving on boards, creating art for fundraising efforts, or writing for the local paper, our agents invest their time and hearts in helping to make our community a better place for everyone. Our community is great in size and scope; our involvement makes a difference.

Our recent newsletter spotlighted some of these remarkable efforts. Click to see the article –      Serving our community

We are passionate about the arts, sports, achievement, opportunities, and excellence. we lead by example.

If any of our passions match yours, please contact us and we will help you get involved.

The Washington, DC Metro real estate market is very vibrant this year. With excellent weather and attractive interest rates, buyers are finding their dream homes. If you are thinking of selling your house this season, the key consideration is setting the right price.

Would you like to have multiple offers? Set the right price.

Even a small percentage over the “right price” will cost you both time and money. This principle remains unchanged in any market.

Since 1986 we have been listing and selling properties in your area. Call us today to schedule your pricing appointment.

2008 – 2012 were financially stressful years in our real estate market. Short sales and foreclosures dominated our market in many areas. Many homeowners became tenants.

Don’t let your past experience rob you of homeownership opportunities today. If you experienced a derogatory credit event, you could now be eligible to finance the  purchase your own home once again. 

Contact us to see how you can get back into your own home. The link below is a useful summary.

 https://www.fanniemae.com/content/fact_sheet/derogatory-credit-event-fact-sheet.pdf