Friday, March 2, 2012

FHA MIP Changes April 1 2012Beginning April 1, 2012, the FHA is once again raising mortgage insurance premiums (MIP) on its newly-insured borrowers throughout Renton and the country.

It's the FHA's fourth such increase in the last two years.

Beginning April 1, 2012, upfront mortgage insurance premiums will be higher by 75 basis points, or 0.75%; and annual mortgage insurance premiums will be higher by 10 basis points per year, or 0.10%.

For borrowers with a loan size of $200,000, the new MIP will add $1,500 in one-time loan costs, plus an on-going, annual $200 increase in total mortgage insurance premiums paid.

All new FHA loans are subject to the increase -- purchases and refinances.

The FHA is increasing its mortgage insurance premiums because, as an entity, the FHA is insuring a much larger percentage of the U.S. mortgage market than ever before. 

In 2006, the FHA insured 2 percent of all purchase-money mortgages. In 2011, that figure jumped to 18 percent. Unfortunately, as the FHA has insured more loans, it's number of loans in default have climbed, too, forcing the FHA to boost its reserves.

Beginning April 1, 2012, the new FHA annual mortgage insurance premium schedule is as follows :

  • 15-year loan term, loan-to-value > 90% : 0.60% MIP per year
  • 15-year loan term, loan-to-value <= 90% : 0.35% MIP per year
  • 30-year loan term, loan-to-value > 95% : 1.25% MIP per year
  • 30-year loan term, loan-to-value <= 95% : 1.20% MIP per year

In order to calculate what your FHA annual mortgage insurance premium would be on a monthly basis, multiply your beginning loan size by your insurance premium in the chart above, then divide by 12.

In addition, for loans over $625,500, beginning June 1, 2012, there is an additional 25 basis point increase to annual MIP.

To avoid paying the new FHA mortgage insurance premiums, start your FHA mortgage application today. Existing FHA-insured homeowners will not be affected by the change.

Mortgage insurance premiums will not rise for loans already made.

N.S.P Ventures purchases 801 9th Street (J Street) Developer purchases the downtown office building built for and occupied by the U.S. Mint.

GMMB signs 46,000 s.f. lease at Washington Harbor (Costar) The "social problem solving company" moves to building on Georgetown waterfront, co-owned by Rockpoint Group and MRP Realty.

Housing construction expenditures rise in February (HousingWire) Spending on residential construction grew by 5.4% over last year, said the census bureau.

Banks are cutting exposure to troubled real estate loans
(Wall Street Journal) Commercial real estate mortgages that are more than 90 days past due have dropped from a high of 4.35% to 3.76%

Thursday, March 1, 2012

SELLER: Dick Clark
LOCATION: Malibu, CA
PRICE: $3,500,000
SIZE: 1 bedroom, 2 bathrooms

YOUR MAMAS NOTES: Ain't no doubt about it, puppies, Emmy-winning octogenarian Dick Clark is a Showbiz treasure and legend who—get ready for a lame and lazy segue way here—owns at least three iconic residences in the low-key but very costly and celebrity-packed coastal enclave of Malibu, CA.

In addition to two significant ocean front spreads—a bit more on those later—Mister Clark has long-owned a quite remote mountain top hideaway on the border between Los Angeles and Ventura counties that he spun on to the open market this week with a $3,500,000 asking price.

The younger children in our virtual midst probably don't have a God damn clue who Mister Clark is but we suggest they do themselves a favor and look him up on the interweb. There's no hyperbole, we don't think, in saying the man revolutionized the music and entertainment industries with his wildly popular and pop-culturally super-significant dance and music program American Bandstand. The show first aired in 1957 and continued for more than 30 years. Thirty years, children, is a long ass time and during that time just about everyone who was or would become anybody in the (pop) music world chatted with Mister Clark and performed on the program.

Truth be told, butter beans, it makes Your Mama a bit misty to think of American Bandstand. In our (long ago) youth the high-energy program provided a kind of televised life line to a far more cosmopolitan life than we knew in our beautiful but small and (back then) oppressively provincial home town. Watching American Bandstand as a hip-wiggling pre-teen in corduroy overalls gave us a heroin-like dose of the glamorous life we thought we wanted, one fully-stocked with lust-inducing lookers outfitted in fearless fashion statements gyrating wildly to new genres of modern music that parent-aged people often detested. What, we thought at the time, could be better than all that glittery nonsense?

Anyhoo, Mister Clark, who famously managed to maintain his youthful appearance well into his advanced years, also hosted several versions of the word association-based game show Pyramid, originally called The $10,000 Pyramid but had a name change when ten thousand dollars no longer seemed like a lot of money for a person to win on a game show.

Since 1972 Mister Clark has hosted the eponymous Dick Clark's New Year's Rockin' Eve (DCNYRE), a New Year's Eve music/variety extravaganza on which he continues to appear each year despite having a stroke in 2004. Since 2005, DCNYRE has been co-hosted by the meticulously manicured Ryan Seacrest, Mister Clark's unofficial Showbiz heir apparent who, like Mister Clark, first had success on the radio and, we can assure the children, will have a long, industrious and financially fruitful career as an entertainment industry tycoon who, like Mister Clark—awkward transition number two—will own a handful of architecturally idiosyncratic and discussion-worthy residences.

All you people out there who prefer their homes have a traditional vibe can move on to your next task because you are not likely to appreciate this little residential ditty which has an honest-to-goodness crafty-homemade quality and looks more like a white-washed cave hangout than it does a house with a lot of boring right angles.

Listing information shows Mister Clark's rather peculiar bedsit in the Malibu boondocks sits on 22.89 secluded acres accessed by a little traveled canyon road that twists up in to the rugged mountains off the Pacific Coast Highway. A hair pin left turn off the paved canyon road puts you on a snaking, dead-end dirt road used by just a couple other equally remote residences. A second hair pin turn off the dirt road swoops up to an unpaved motor court and detached, two-car carport.

A wide concrete walkway curves up through the indigenous desert-meets-seaside landscape to the low-profile abode, which at first glance looks like it was fashioned from papier mâché or carved out of a massive boulder. Listing information does not indicate the square footage—neither does the Ventura County Tax Man—but does show the open plan, hive-like home contains just 1 bedroom and 2 bathrooms.

Mister Clark's mountaintop spread is almost ludicrously remote, the sort of place where if you forget to buy milk, a tomato, toilet paper or lady-part necessities you simply make due with whatever might be at hand. It's about 22 miles and at least a half hour (without much traffic) to the Malibu Country Mart and Lumber Yard and another 12 or 15 miles and another half hour (without much traffic) to the Third Street Promenade in Santa Monica. Closer perhaps but not much more convenient are the Ventura County communities of Oxnard and Camarillo, each about 20 miles and a forty minute drive from Mister Clark's isolated hideaway.

Even for a solitary person like Your Mama who happily go days without speaking or seeing another person besides The Dr. Cooter and Fiona Trambeau who calls every day to let us know she's not passed out in the apartment of some unsavory character with whom she's gone home the night before, this is a think-about-it-twice sort of secluded that, despite the spectacular 360-degrees views and stunning scenery, borders on godforsaken. Just think of what it costs in gas alone to have a minimum wage girl drive out there every couple of days to keep the plants watered. Plus, three and a half million clams is a lot of dinero for a getaway where overnight guests will have to curl up on the curved sofa in the living room, pitch a tent in the back yard or fold themselves into the back seat of their car.

The multi-level living and entertaining spaces include an intimately-scaled living room with sheep's-wool colored wall-to-wall shag carpeting, the aforementioned, custom designed curved couch, a fireplace-like cubby for the telly, and a massive oval opening filled with geometrically installed frameless glass that brings in a distant but dynamic view of the Pacific Ocean. The ocean view is no less enticing from the adjoining dining room with sensually undulating ceiling and walls with built-in buffet along one side, more shag carpeting under foot, and a dining room table with chunky pedestal base encased in hand-stitched leather patchwork.

It's all very organic and strange and we're not afraid to say we swoon for it all...well, for most of it anyways. The kitchen, by our humble and utterly meaningless opinion, is a bit of a disaster. The series of port hole-like windows in the kitchen do provide magnificent vistas of the surrounding craggy mountains that would make doing the dishes an almost pleasurable experience but the rippling, drippy, and downright Dali-esque cabinets make Your Mama feel a bit queasy. We applaud the effort at stylistic consistency here but iffin we were to buy this property—and there is no chance we will buy this property—we'd have to rip that kitchen out and re-do in in a more sleek manner that would operate in a visual juxtaposition to the homes sometimes anatomical-looking interior architecture that swells, surges, swoops and hollows in the most unusual and delightfully unexpected manner.

The shag carpeting stretches into the lone bedroom adjacent to the living room that has wide, amoebic windows, a raised fireplace, lots of chaise-y chairs for lounging, and an almost cochlear bathroom with pebble tile floor, cantilevered vanities, and a party-sized jetted tub set into an undulating niche with the most dee-vine (and divine) view that stretches from mountain top to mountain top for as far as the eye and air quality will allow.

We regret to inform that children we know nothing about the architect and/or how house this house came to be. If anyone wants to enlighten Your Mama, be sure to give us a jangle on the email.

Mister Clark owns at least two other notable and well-located properties in Malibu. In the late 1970s Mister Clark acquired a funnel shaped parcel of property that narrows as it gets to the beach where there now exists an 8,688 square foot hexagonal-shaped house and swimming pool that sits so right on the sand that any closer would put it in the surf.

Real estate reports from 2002 reveal Mister Clark paid Pepperdine University "close to $15,000,000" for Gull's Way, an enviably sited 11-and-some acre bluff top estate above Latigo Beach. At the time Mister Clark picked the property up it included a 6,600 square foot main house, an 1,800 square foot guest house, caretaker's cottage, beach shack and extensive grounds with a pet cemetery. There is online evidence the property is sometimes leased out as a wedding and event venue. The property had been donated to Pepperdine by Luella "Billie" Ulrich who hoped they would utilize it as some sort of conference center but the high-priced college was unable to obtain the necessary permits and variances to do so.

listing photos: Everett Fenton Gidley for Coldwell Banker / Malibu Colony
The National Association of Realtors reports that existing home sales have hit a 21 month high in January 2012. A total of 8% more contracts were signed by agents during that 21 month period. NAR chief economist Lawrence Yun says job growth and rental rates are somewhat of a cause for this recent spike. He also suggests that once credit availability becomes more regular, home sales will see a significant increase, and home prices will as well. This will in turn reduce the amount of people who are currently upside down on their mortgages. Rising rental rates may be boosting home sales as well. With the cost or renting being so close to the cost of a monthly mortgage, many prospective tenants are being asked, or asking themselves, if they have ever considered buying to save money. Here in Florida, partly due to the attraction of warm weather and comfortable retirement options, rental prices have remained high. If rental options hold their value and mortgage rates remain at an all time low, we could definitely be in store for a boost in home sales and prices. Clear Capital research reports that home sale prices are up in the Tampa, St. Petersburg, and Clearwater metro areas compared to this time last year. Not only is our immediate surrounding area seeing a price increase, but for this quarter, it is one of the highest ranking recovering cities in the U.S., only behind Pittsburg and Rochester N.Y. Now that home prices are scooting upward and home inventory is at an eight year low, and volume of sales are up double digits, we can begin to see the light at the end of the tunnel getting bigger. Don’t let the time to buy pass you by.. SI Real Estate offers highly personalized, multilingual, full-spectrum real estate purchase and sales services. We are a boutique for sophisticated investors, select owners or renters who may be upgrading locally, or those making traditional relocations. We also provide turnkey landlord and tenant management. Blending comprehensive insight into the Tampa Bay area with international perspectives for a worldwide clientele, we like to think that “SI Real Estate is Global Real Estate in Every Way!”

Case-Shiller Index December 2011

Standard & Poors released its December 2011 Case-Shiller Index this week. The report is the most widely-cited, private-sector metric for the housing market. The index aims to measures change in home prices from month-to-month, and from year-to-year, in select U.S. cities and nationwide.

According to the report, between November and December 2011, home values fell within 18 of the Case-Shiller Index's 20 tracked markets; and through the 12 months leading up to December 2011, 19 of 20 tracked markets fell.

Only Detroit posted year-over-year gains, adding 0.50% since December 2010

Now, these statistics may look dire for the housing market, but it's important to remember that the Case-Shiller Index -- though widely-cited -- remains a flawed statistic for everyday buyers and sellers in Seattle. Rather, the monthly Case-Shiller Index is more appropriately applied by policy-makers and economists to macro-economic issues than by you and me for buy-or-sell decisions..

There are three ways in which Case-Shiller is flawed -- each tied to the way by which Case-Shiller Index is calculated.

The first reason why the Case-Shiller Index is flawed is that, although it's purported to be a "national" housing index, the index tracks just 20 cities nationwide. The United States, by comparison, houses more than 3,100 municipalities. The Case-Shiller Index is not a representative sample of the U.S. housing market.

And then, even within its tracked markets, Case-Shiller fails provide sufficient details to be useful.

Within each Case-Shiller Index city, there are innumerable "local markets", each with its own local economy. When home values are shown to be falling in Phoenix, for example, that doesn't mean that values are falling everywhere in Phoenix -- only in the aggregate. There are multiple neighborhoods in Phoenix in which home values improved in December.

The Case-Shiller Index doesn't capture that. 

As another reason to ignore the Case-Shiller Index, note that the Case-Shiller Index only includes home sale data for single-family, detached homes -- sales of condominiums and of multi-unit homes are specifically excluded. In some markets -- Chicago and New York, for example -- sales of these types can represent a large percentage of overall monthly sales.

Lastly, as a third reason to reduce the Case-Shiller Index's significance -- it's "old".

The Case-Shiller Index is published on a 60-day delay and includes sales contracts from even 60 days prior to that. In other words, the data used in this week's Case-Shiller Index dates back to October 2011.

Data from 5 months ago is of little relevance to buyers in WA today. Up-to-date and current information is what matters.

For actionable, real-time housing market data, therefore, look past the Case-Shiller Index. Look to your local real estate agent instead.


Construction on The JBG Companies' long-planned residential tower in Woodley Park, just east of the Marriott Wardman Park, is well underway with excavation nearly complete, and the project - formerly known as Wardman West - has been rebranded as 2700 Woodley.
Upon completion (delivery is anticipated in Q1 2014), the upscale David M. Schwarz Architects-designed tower will offer 211 rental residences. Ongoing speculation has centered on whether the project would be condos or apartments, and it turns out that developers have decided to go the "premier apartment community" route, a savvy decision considering the almost complete absence of new high-end rentals in the immediate area. Matthew R. Blocher, Senior Vice President at JBG, said a full-scale marketing campaign will launch in the fall. (Possibly from New York-based SeventhArt?)

A new rendering acquired by DCMud (top) shows a building structurally similar to the Esocoff-designed concept depicted in the earlier renderings (below, right), but with a vastly different, and more attractive facade. Whereas the previous design verged on minimalistic (if not outright post-Soviet Eastern Bloc), the new facade is more texturally interesting, and much more in keeping with the character of the nearby hotel.

While the 2700 Woodley tower will likely be successful, the building also represents something of a defeat for JBG. After buying the nearby Wardman Park hotel and its 16-acre parcel for $300 million in 2005, JBG and partner CIM planned to convert the hotel into residences, in addition to building the new tower. Marriott objected, the project stalled, and then the recession hit. The project lay dormant for some years before resurfacing in seemingly unrelated litigation between JBG and Marriott over a new Marriott hotel at the Washington Convention Center. After a JBG-affiliated entity filed suit to block construction at the Convention Center, a Marriott countersuit claimed JBG's suit was a mere tactic to force them to renegotiate regarding the Wardman Park hotel. JBG denied this, and eventually all suits were dropped.

Regardless of what it was really all about, the Marriott Wardman Park, the city's largest hotel, and onetime home to three former U.S. presidents (I'll buy you a drink if you can name all three without looking on Wikipedia), continues to operate, even as construction kicks into high gear just to the west.

Washington D.C. real estate development news

AREA Property Partners purchase EOS 21 in Alexandria, an 1180 apartment complex (Commercial Property Executive) The Van Dorn area apartment building sold for $192m.

Case-Schiller summary shows year ending on a "disappointing note" (Biz Journal) Prices were down 4% nationally, but the Washington D.C. area showed some of the top promise for long-term price appreciation.

Mortgage indicator drops in January (HousingWire) Mortgage insurers underwrote loans at a pace 23% below last January.

Developer plans Reston's tallest building (Washington Post) RTC Partnership plots a 23-story tower, replacing a smaller office building, despite high vacancies along Dulles toll corridor.

Maryland proposing cap on mortgage interest deduction
(Washington Post) Proposal would hit those that make more than $100k.