The numbers are in

An article from the Wall St. Journal that 's of interest:

Homes Sales Fell in December;Condo Market May Falter
By Joi Preciphs
Sales of existing homes fell in December to their lowest level in three months, but they still set a record for the year.
The National Association of Realtors said nationwide sales of previously owned homes fell 5.7% to an annual rate of 6.60 million last month from November's revised annual rate of 7.0 million. Analysts had projected a 6.87 million sales rate in the existing-home market, which includes single-family residences, condominiums, townhomes and co-ops.
The national median price for existing homes of all types in December was $211,000, down from an unrevised $215,000 in November, but up 10.5% from December 2004. The inventory of homes on the market increased slightly to a 5.1 months' supply last month, compared with 5.0 months in November.
The pattern was mixed regionally, with sales falling 11.4% in the West, 7.2% in the South, and 2.6% in the Midwest. Sales in the Northeast were unchanged.
Patrick Newport, U.S. economist at consulting firm Global Insight in Waltham, Mass., said in a statement that the movement of interest rates is cooling the housing market and will continue to do so in 2006.
"Interest rates have eased in recent weeks, but we are expecting them to drift back up over the first half of 2006," he said, adding that if the Federal Reserve raises interest rates two more times before pausing, the increases "will cool off the housing market and deflate many local housing bubbles."
Mr. Newport doesn't expect the market to collapse anytime soon. The first casualties might come in places like the condo market, where the inventory of unsold homes jumped 8% last month. Sales of existing condominiums and co-ops increased a modest 1.6% in December, according to the NAR report.
Financial institutions have been keeping a watchful eye on the condo market and in some cases have scaled back lending for new condo developments. "We see risk of a substantial condo-price decline in certain frothy markets, based on record high inventory levels and the recent rapid price appreciation in condos," said Banc of America Securities analyst Daniel Oppenheim.
Despite the apparent slowing, existing-home sales for the year reached 7.072 million units, setting their fifth successive annual record, the NAR said. Home prices still remain strong, despite some softening. Given these factors, NAR Chief Economist David Lereah said in a statement that there is a "soft landing in sight for the housing sector."
"The level of home-sales activity is now at a sustainable level, and is likely to pick up a bit in the months ahead," Mr. Lereah said, adding that he expects the 2006 housing market to "remain historically high but lower" than 2005.
The recent boost in mortgage applications might suggest a "partial rebound in sales is directly ahead," Banc of America Securities economist Gary Bigg said. Mortgage giant Freddie Mac said the average 30-year fixed-rate mortgage was 6.27% last month, down from November's 6.33%.

What's our market?

The housing market is changing. We're all hearing and reading about it and if you're buying or selling a home you're seeing it firsthand. At our sales meeting yesterday we talked about the changing market and what it all means. Here are some points:

• People are looking for value. They don't want to buy something they don't think is worth the price. If you have a house to sell, unless it is totally renovated and has some bells and whistles, if it's priced too high, it won't sell. I've seen that a lot. Renovations will be done poorly and the house will be priced high and sellers will expect to get top dollar. People know the difference between a good renovation and one that's just slapped together. If they don't think it's worth it, they won't buy it.
• Our current market has about three weeks worth of inventory.
• If you compare the number of active listings and the number of pending sales, if there are more pending than active, then we have a strong sellers market. If we have more active than pending, then we have a strong buyers market. From all indications, we are in a buyers market right now.
• If you live in Northern Virginia and you have a house to sell, it may sit longer than usual.

If you're getting ready to sell your home, think about what a buyer will want. Realtor Magazine has a list of renovation tips:

Tips for Selling a House That Won't Sell(January 24, 2006) -- Young buyers like a pretty house, so when a house won't sell, Mark Nash, author of 1001 Tips for Buying and Selling a Home, urges home sellers to make these simple cosmetic updates.
Expose hardwood floors and buff them until they shine. Nash, who sells homes in the Chicago area, says an increasing number of younger buyers dislike homes with wall-to-wall carpeting. ''It's amazing how often I hear from young clients who won't even look at a place unless it has hardwood floors,'' he says.
Remove antiquated furnishings. Many young buyers have eclectic tastes. Get rid of matched sets of look-alike furniture from the 70s and 80s then rearrange what's left to make the house feel more contemporary.
Take down your old draperies and light fixtures, including old-style track lightings. Nash says outdated lighting and heavy, elaborate draperies (the kind with swags and valances) are a turn-off to young buyers.
Remove wallpaper. Young buyers are unwilling to purchase any home that needs wallpaper removal it's just too daunting.
Repaint your walls. Nash encourages home sellers to stick with neutrals or calm earth tones, like a light sage green. Using bold tones can be very tricky, he cautions. "I call these commitment colors. Chances are good that your buyers won't like them as much as you do,'' he says.

Lots of stuff to take in and get a handle on I know. If you have a house to sell or you're thinking about buying, please give me a call or send me an e-mail. I can help you navigate the housing maze. Take care and make the most of your day. Remember you can rest when you die.

Three down and counting

The third week in January is fast approaching. Where does the time go? For the housing market this is the time when people really begin to think about making a move. The weather hasn't been too cold so more people are showing up at open houses and more people are actually out there looking again. The market is changing but that's a good thing. Here's what the Wall St. Journal has to say about it:

Home Buyers Negotiate PerksAs Housing Market Slows Down
By Danielle Reed From Dow Jones Newswires
In recent months, home buyers in some markets across the country have been able to do something they hadn't for years: haggle.
As the galloping housing market shows signs of slowing, certain areas of the country -- such as Boston's North Shore suburbs, the Washington, D.C. metro area, and parts of Arizona and Colorado -- are beginning to favor buyers who can negotiate a better price, or at least a few more perks.
"It's most definitely a buyer's market," says Lanse Robb, a real-estate agent with LandVest who specializes in the upper-end market on Boston's North Shore. There is "more inventory than buyers," he says. "Buyers dictate the terms, the price, and in more cases than not make very few offers. If they don't get a quick and decisive response, they move on."

What that means for you if you're buying is if you see a house you like, make an offer! If you're selling your house, be open to the offer you receive and don't take it as a personal attack on you and your home if the price isn't what you want. There's always room to haggle.

A normal year

The housing market continues to move at a fast pace, especially in this area. 2006 is expected to be a more normal year in real estate, however. Here's what the National Association of Realtors has to say about it (from Realtor Magazine):
The key word for the housing market in 2006 is balance, with a return to a more normal rate of price growth, according to the NATIONAL ASSOCIATION OF REALTORS®.David Lereah, NAR’s chief economist, says current trends in the housing sector are healthy. “We don’t need to break a record every year for the housing market to be good—in fact, cooling sales are necessary for the long-term health of this vital sector,” Lereah says. “A modest slowdown in home sales, coupled with improvements in housing inventory, means the market is in the process of normalization. That will help to bring balance between home buyers and sellers, yet sales will remain historically strong.”After setting a fifth consecutive annual record, projected to be 7.10 million units for 2005, existing-home sales are forecast to ease by 4.4 percent to 6.79 million this year, which would be the second highest on record. New-home sales, which should be a record 1.29 million for 2005, are expected to decline 6.0 percent to 1.21 million in 2006—that also would be the second best year in history. Total housing starts for 2005 are seen at 2.07 million units—the highest since setting a record 1972—with a 6.6 percent slowing to 1.94 million this year.

This is what I've been saying for a while now. The market is becoming more balanced. It's important for both buyers and sellers to understand that. What that means if you're a buyer, if you see a house you like, make an offer. If you're a seller, if you get an offer on your home, negoiate the price it it's not what you want. If your house has been on the market 60 days and you don't have an offer, the market is speaking to you by its silence. I've heard of houses being on the market for more than six months and an offer finally comes in and the seller is upset because the offer was $25,000 less than he wanted. This would be a prime example of a seller being so out of touch with the market that he is willing to let his house sit for months just to get the price. And he didn't even want to counter the offer. If I were that seller's Realtor, I'd fire him.
Saw a $2 million house yesterday. Tuesday is the day that Realtors go on house tours so we get to see all kinds of houses. I'm usually looking for specific clients but sometimes I just look to see what's out there. I wanted to see what a $2 million house looked like. This one hceilingsot cielings. It was hugh! That's really all I can say about it though because I wasn't very impressed. The monthly mortgage on that house is $14,000. If you're interested in buying it, call me. Also saw Chef Geoff's house in Georgetown. He's selling it and his mother is the agent. It's a beautiful home, very well decorated. It's over a million.
My website's up and ready. I'm still adding stuff to it but here's the address: www.angelajonesrealestate.com. Check it out and let me know what you think and what you'd like me to add to it. That's it for today. Enjoy your day.

In and Out

I saw something in the Wall St. Journal that I thought was interesting. If you're planning a home remodel in the near future, check this out. Some things that have been staples in the home remodeling business are on the way out. Here's the list according to the Wall St. Journal:

Sinks
WHAT MAY DIE: Above-counter sinks
WHAT'S NEXT: Wet surface, farm-style
OUT: Above-Counter Sink

Above-counter sinks (also known as vessel sinks) seemed like a good idea when they were introduced a decade ago in trendy bars and restaurants. The distinctive fixtures -- they look like bowls on a counter -- were a big departure from traditional sunken models. Consumers liked them so much they started installing them in home powder rooms and baths. American Standard plans to offer 26 above-counter styles in 2006, up from six in 2000.
But the more consumers experiment with these shapes, the more the sinks' downsides surface: The glass ones that look like mixing bowls show toothpaste, stray hair and water spots. The shallowest models splash. Taller versions don't, but are hard to clean, since the bottom of the sink is less accessible. And there's the confusion factor: Cheryl Fockler, a mother of two in Richmond, Va., says that when she updated her bathroom a few years ago with a crystal bowl set delicately on an antique dresser, her 6-year-old asked: "Where am I supposed to wash my hands?"
IN: Furniture Sink

Even makers say there are shortcomings. "If you are into practical design, you don't buy a vessel," says Mary Reid, vice president of advanced product development at Kohler.
Now, with prices coming down -- Lowe's sells a white ceramic above-counter sink for $98 from Decolav -- the industry, too, is fishing around for other expensive looks to drive up profits. Some options include "wet surface" sinks, where water runs over a plate-like slab (Kohler has one for about $2,000), farm-style sinks (think of a big, rectangular box set into your counter) or sinks set into furniture, mimicking desks or dressers (Waterworks has one that looks like a baby changing table for about $1,800).
Kitchen Countertops
WHAT MAY DIE: Matte stone
WHAT'S NEXT: Engineered compounds
Polished granite has been fashionable for awhile now, but in the last few years it has lost its luster. "It's all about, 'I don't want shiny,'" says Marvin Daniel, president and chief executive of Kitchen Designworks, a kitchen designer and remodeler in Richmond, Va. "Shiny is conspicuous consumption."
That has given rise to a more subtle countertop -- with surfaces that are sanded or honed for a matte appearance. At Poggenpohl U.S., honed granite counters represent 39% of granite-counter sales, up from about 7% in 2000, while polished granite is down to about 61% of granite sales, from 93% in 2000. Similarly, Joanne Hudson, the owner of a kitchen-design firm in Philadelphia, says honed countertops now represent about 80% of granite sales, up from about 5% five years ago, while shiny granite has slid to 20%.
The problem: Honed stone is generally softer and more porous than polished versions and can end up chipped or stained. "If you leave a glass of red wine or tomato juice on a honed counter, you've had it," says Lothar Birkenfeld, president of Poggenpohl U.S. So while retailers from Gracious Homes in New York to Home Depot's Expo Design Centers are marketing honed to their customers, some decorators are advising their clients to steer clear. "I tell people you need to understand this is going to stain, but they don't always hear what you're saying," says Mr. Daniel.
With kitchen-countertop sales relatively flat, makers are pushing alternatives. One newer option: engineered slabs made from a mixture of quartz and synthetic compounds that feel like stone and come in colors like lime green and cherry red. Makers say the slabs are practical because they are stain- and scratch-resistant, and at $50 to $80 per square foot, a lot cheaper than Italian marble. In Boston, Dalia Tamari, owner of a kitchen-design business, says engineered stone countertops account for 35% of the countertops she installs, up from nothing two years ago.
OUT: Glass Cabinet Doors

Kitchen Cabinets
WHAT MAY DIE: Glass doors
WHAT'S NEXT: Dark woods, smooth surfaces
Kitchen-cabinet sales were strong across the country this year, up about 15% from 2004, according to David Rothermel, president of StyleCraft, a custom-cabinet firm in Terre Hill, Pa. That was driven in part by the popularity of glass cabinet doors, which go well with contemporary kitchens, one of the strongest segments of the markets. In Mr. Rothermel's business, contemporary kitchen cabinets represent about 15% of total kitchen cabinet sales, up from about 5% three to five years ago. And homeowners like Carol Janes in Brentwood, Calif., say they've chosen them because it's "fun to see" pretty china and other decoratives.
IN: Solid Cabinet Doors

But many kitchen designers say the look is too high-maintenance (lots of fingerprints) and even slightly embarrassing -- especially for families with young children who need a place to hide sippy cups. "People invented cabinets for a reason -- to keep things dust-free and make them disappear," says Tom Newman, an architect in Culver City, Calif.
Susan Smart, a kitchen-design consultant with SieMatic Mobelwerke, the German kitchen maker, says the percentage of her clients asking for glass doors on cabinets has fallen to about 50%, down from about 70% a year ago. At Poggenpohl, seven out of 10 kitchens featured glass cabinet doors in 2002. But in the past two years, the glass has migrated from cabinets to counters and backsplashes.
Other trends in kitchen cabinets include smoother surfaces and a return to darker woods. Poggenpohl has added nearly a dozen lacquered colors to its line, in glossy, matte or satin surfaces, including red, French blue and light gray. StyleCraft, the Pennsylvania maker, is using more mahogany and a genetically engineered wood called Lyptus that looks like mahogany. Meanwhile, SieMatic is encouraging customers to keep things simple -- doors in medium-toned brown woods like pine and oak, with light washes or finishes to give the color more depth.
Televisions
WHAT MAY DIE: Built-in flat-panels
WHAT'S NEXT: Flat-panels on top of furniture
Your new flat-panel TV is a work of art, boasts a new ad for Panasonic's plasma TVs. "So why not frame it like one?"
Ads like this, and falling prices, have helped fuel a big run-up in sales of flat-panel TVs. But is mounting one on the wall really such a good idea? Certainly, it makes an expensive purchase even more costly. Panasonic's frames -- including black modern and traditional faux gold-leaf styles -- start at $400. (Panasonic says 30% of its large-screen television customers do a wall mount, up from 10% in 2004). Hiring a contractor and electrician to reconstruct your drywall and reroute wiring can mean hundreds or thousands more. Some installers are even rigging flat-panel TVs to descend from the ceiling with a push of a button.
But a few design experts warn homeowners away from such costly installations because most televisions get mounted in the wrong position. Mr. Rothermel, the StyleCraft president, says many are hung for straight-ahead viewing, which can be uncomfortable; others are positioned over a fireplace or as artwork, which is too high for most viewers. Plus, with a television stuck on the wall, it can be hard to rearrange your room.
But you should proceed with caution. "If you do too many built-ins around too much technology, which is changing every year, you are going to be outdated pretty fast," says Victoria Hagan, a New York interior designer. Her suggestion: Set your television on a piece of furniture to minimize the wires.
Tile Floors
WHAT MAY DIE: Tumbled stones
WHAT'S NEXT: Oversized tiles
In the past few years, tumbling, a process that gives floor stones a rustic, old feel, has become a mainstay of upscale tile firms. These makers push the look as unexpected -- bringing the outdoors inside -- and practical because their rough surfaces are less slippery than polished tiles.
But the tiles also have an impractical side: Because they're used to create a country feel, they're often installed with wide grout lines, which is hard to clean. What's more, now that more mainstream outlets like Lowe's are carrying tumbled wares, high-end tile stores are directing their clients to a more refined look. At Artistic Tile, a stone and mosaic importer based in Secaucus, N.J., tumbled stone accounted for 10% of sales in 2005, down from about 23% in 2001; the firm says demand is shifting to honed and polished styles.
One new look is oversized stone tiles, measuring 12 inches by 36 inches, instead of the traditional 12 inches by 12 inches. "It gives it a more substantial look," says David Meitus, a partner in Studium, a New York tile and stone importer. One caveat: Make sure the big sizes work in proportion to the rest of the room.

Let the fun begin!

Exactly one year ago I turned out the light in my office at 1201 F St. NW for the last time. I left my full time job with the National Federation of Independent Business and started my real estate career. I haven't looked back.

Had an open house yesterday at 1150 K St. It's a great new building downtown and if I had the $555,000 for a two bedroom, I might consider it. A few people came by and one person seemed interested in buying one of the units. We'll see. I have another open house today at my listing at 3468 24th St. SE Jan. is usually a slower month than Feb. or March but people are still out looking. 2005 was a good year for real estate and 2006 will be just as good. It may not set the records as in past years but it will still be a great year nonetheless. Real estate economists are predicting at least a 3.5% increase in home sales this year. That's pretty good. and if the unemployment rate continues to go down and the job market remains strong, home sales will continue to be strong. I read in Realtor Magazine yesterday that the rate of foreclosures may go up this year though. The reason: a lot of people bought homes a few years ago that they could only marginally afford and as interest rates go up and their payments go up, they are going to face losing their homes. More and more mortgages are late more than 30 days. It will be an interesting year.
My realtor association will release statistics on home sales in the DC area for 2005 soon and I'll post them here when I get them It should be interesting to look at.

What about those Redskins! It was an ugly win but a win nonetheless. The offense has got to at least show up for the game because if they keep playing the way they played yesterday, there's no way they will beat Seattle next Saturday. I don't think the Redskins will make it to the Super Bowl though. To do that they will have to win every game they play from now on and I don't think they have it in them, looking at how they played yesterday. Joe Gibbs does find a way to win though so it will be great to watch.

Anyway, my day it about to start so I'm going to sign off now. Enjoy the rest of yours.

So little time

I'm up early this morning, can't sleep for some reason. I have so much to do and I feel like there's so little time to do it all. I've got two open houses this weekend. One is at 1150 K St. NW which is a new condo building opening up downtown. It's not my listing but I'm sitting it for one of the top agents in the company. I actually sold one of the units in Oct. to clients who are planning to rent it out. It's a great building and if you have the money, it's a great location. One and two bedrooms run from the mid 400s to upper 500s. I'll be there Sat. from noon until 4. I'll be done just in time to get home to watch the Redskins fight off Tampa Bay. The other open house I have is Sunday at one of my listings, at 3468 24th St. SE. I'll be there 1-3 pm. I sold a house near by several months ago. It's in the Randle Heights neighborhood. This is the time of year when things are really busy in the real estate business. No, the market isn't cooling, it's not slowing down. I'm as busy as I've ever been.

I love referrals! I've had several clients come to me from referrals. If you know anyone ready to buy or sell a home, please pass their names on to me. I also give very nice referral gifts so keep that in mind.

Saw some really cool houses this week. The one that stands out in my mind is one on Q St. NW in Dupont. It was $1.8 million and the monthly payment will be $10,000. I don't know anyone who can make a $10,000 a month mortgage. It's a great house though. It had five fireplaces, beautiful hardwood floors, a great backyard and even an English basement. I wish I could afford it. In a few weeks I'm going to start sending out the best houses of the week, via e-mail. If you're interested in receiving it, let me know. There are a lot of great houses out there.
That's it for now, I need to begin my day. Enjoy the rest of yours and remember you can rest when you die.

What a year

Can you believe 2006 is here already? Where did 2005 go? This time last year I was getting ready to leave my PR job of 16 years and embark on a new career in real estate. My first official day as a full time real estate agent was Jan. 10, 2005. I assumed that things would be slow and I'd have plenty of time to get my systems in place and work on updating my database and all those other things they tell new agents to do. As it turned out, things weren't really all that slow and I've been going nonstop since. Not complaining, mind you just making an observation. My first full time year in real estate was actually pretty busy. I sold 10 houses in 2005. My goal for 2006 is to double that number. Right now I have two listings and several buyers ready to begin their search. Also last year I was able to get my Virginia license so now I'm licensed in all three jurisdictions. This year I'll be working on getting my GRI designation. GRI is Graduate of Real Estate Institute. It basically means I'll know a little bit more than the average real estate agent because I've taken advanced real estate classes and passed the test. There are three series of classes. I've passed one already and have the second and third coming up in March and April. It will be a busy year!

The real estate market continues to churn away. The market isn't cooling, it's just becoming more fair, more fair for buyers and sellers. I continue to get asked if the market is slowing down. No, people are still buying and selling homes. Prices are coming down obviously. If the price is too high to begin with, it will come down if the seller is interested in actually selling. Here's the thing that I believe sellers forget. If the house is an investment, it's like any other kind of investment, there are risks, there are ups and downs. It's all on paper anyway and you don't get the value until you sell. I think that the market is in great shape. Houses are sitting a little longer. The market always slows a bit this time of the year. It means that agents have to work harder though. I love it!

I haven't talked about politics in a while but there is too much happening for me not to say something. Is it really ok to listen in on the conversations of American citizens without a court order? Is it really ok to hand out gifts and favors in exchange for favorable votes on legislation? Was Marion Berry really allowing two young men to help him with his groceries, did they really rob him? Why are so many DC Council members running for mayor and totally ignoring the fact that baseball is good for the city's revenue coffers? They should stop playing politics and work out a deal and move on. Maryland is reaping the benefits of the Washington Redskins being in Landover now because DC politicians couldn't stop the ego play. If we're not careful, our so called leaders will return this city to the crappy place it was 10 years ago. I don't want to see that happened but I'm afraid that's where we're headed.

And speaking of the Redskins, I am thrilled to no end that they are finally in a playoff game for he first time in six years. It feels good especially since Dallas isn't going to the playoffs and Dallas lost it's last game of the season and we have a better record than they do and we beat them twice. Love it!