New: Fells Point Investment property for sale. Property features $72,000 per year gross income potential from 4 individual units located at 1924 and 1926 Fleet St. Properties consist of two commercial spaces as well as two apartments. Offered at 8% capitalization rate, roughly $160/sq. ft.

Mixed use buildings collectively consist of 4,290 sq. ft. +/- and all units have been fully updated. Some features include hardwood floors, exposed brick, central heat and air conditioning, ceiling fans, tile floors, spiral staircases, tubular skylights, appliances in both apartments, individual metering of utilities (combined water bills).

Apartments include a 2 bedroom/2 bath space and a 1 bedroom/1 bath space, both currently rented. The commercial spaces include a roughly 800 sq. ft. retail space occupied by a strong business - women’s clothing store with 5-year track record and 3-year lease at market. Second commercial space is fully rehabbed and features 1,650 sq. ft. Market rent of $2,500 (currently for lease and drawing interest).

Offered at: $685,000

We are pleased to note that one of our own commercial/retail properties is now available for sale. FULL DISCLOSURE: Blevins Wist Real Estate Principals are the owners of this space and are both licensed real estate agents.

For more information on this Fells Point commercial property for sale , please visit this page: View Listing

We are pleased to note that one of our own commercial/retail properties is now available for lease. FULL DISCLOSURE: Blevins Wist Real Estate Principals are the owners of this space and are both licensed real estate agents.

For more information on this Fells Point commercial space for lease , please visit this page: View Listing.

The property features a variety of amenities that are perfect for office space, a retail business or a service business. Past uses have included office space, retail and a wellness center. The property features a lobby with 18″ tiles, plenty of light coming into the lobby via glass doors and large windows, as well as a wide-open space in the middle of the property that can be used as it is for a common/retail area or divided into offices. There are also 3 separate rooms that can be used as offices, storage or more retail space, as well as 3 separate storage areas.

The space also features a kitchenette with a small refrigerator, sink with disposal and cabinets as well as a full bathroom with a shows in a separate room. Also featured are high ceilings, exposed brick and ductwork that give the space a “metro” feel and a great location for foot traffic and proximity to a wide variety of businesses and consumers in the area.

• Available: Immediately
• Lease Term: 1-3 years
• Monthly Rent: $2,500/month ($18.18/sq. ft.)
• Uses: Retail, commercial, office, service business

Despite news that new home sales rose in February, home builders are generally suffering along with the rest of the U.S. public and homeowners in the current climate. There are, however, encouraging signs that new home technologies and green designs are not being dismissed by homebuilders and, in fact, that such initiatives and new home “features” are driving builders’ profits.

A State of the Builder Technology Market Study was recently released by the Consumer Electronics Association (CEA) and found that most builders are moving strongly to continue offering home technology and green building options. 70% of builders, in fact, noted that technology was helping them maintain revenue that may have otherwise evaporated due to the economy, representing a 10% increase from last year.

Said Steve Koenig, the director of CEA:

Home technology is poised to take off as the economy and housing market improves. Builders are aware of the value of home technology and have increased their marketing efforts – suggesting builders are leaving no stone unturned to help move inventories while recognizing the importance of home technology for consumers.

Among the popular options being added by builders are multi-room audio and home theaters. At the same time, builders are increasingly paying more attention to green building, as over 60,000 buildres, remodelers and architects attended the New American Home 2009 at the recent International Builders’ Show in Las Vegas. The “New American Home” is one that features an array of energy efficiency initiatives including natural gas-powered heating and cooling, photovoltaic cells and solar water heating, Low E windows, advanced insulation and host of other additions that makes the homes consume almost zero electrical energy from “the grid.”

As someone who has spent more time with drywall than I actually have desired (yet not nearly so much as a professional), I can say that I’m not overly fond of the stuff. It’s a great invention, mind you, and certainly more effective and easy to use than plaster and lathe. But hanging it is a pain and finishing it requires a certain “artistic” touch that I seem to have in only fits and spurts. Ceiling are especially annoying to me.

With all that said, however, let me just say that drywall (or “Sheetrock” or gypsum board, or however you’d like to refer to it) is great stuff, especially when I don’t have to work with it. Lately, however, there have been some issues with certain shipments of Chinese-made drywall that contains strontium sulfide, which apparently smells like sulfur (rotten eggs) when exposed to modest amounts of moisture. U.S.-made drywall, on the other hand, contains none of the material and thus doesn’t have the same unfortunate smell.

The question now is whether the drywall in question is merely stinky, or if it also poses a health threat. Many homeowners in select states have complained about the stench of their drywall, but the verdict is out on whether it’s actually toxic. Said Florida toxicologist David Krause:

It’s not that we are saying it’s safe. We are moving forward on a much more detailed, in-depth study.

Some homeowners in Florida, Louisiana, North Carolina, Alabama and Washington have complained about respiratory problems which some are attributing to the drywall.

Fortunately, it doesn’t appear as though any of the “bad” drywall has made its way to Maryland and, if the stories are any indication, it won’t any time soon. For those considering a move to those relatively warmer climes, however, be aware of the issue, which reminds me vaguely of the failing of FRT plywood (Fire Retardant Treated) that was used ubiquitously in townhomes in the 1980s.

According to the National Association of Realtors, existing home sales jumped 5.1% nationwide in February, 2009, though prices were down 15.5% from the same month last year. Sales prices were unprecedented, falling to the same lows last seen in 1997, and economists are predicting that, nationwide, prices will probably fall well into 2009. Nicolas Retsinas, director of Harvard University’s Joint Center for Housing Studies, noted:

The four-letter word in the housing market is “jobs.” If you’re worried about having a job tomorrow, you’re not likely to buy a home now.

In Maryland, the news is generally better than the nationwide picture, and certainly better than “toxic” real estate markets in Florida, Nevada, California and Arizona. To offer a correlary to Retsinas’ notion of employment rates functioning as a fulcrum to the real estate market, consider that the national unemployment rate is 8.1%, while in Maryland the number is just 6.2%. That’s high, to be sure, but clearly better than the nationwide picture, with the Maryland real estate market following suit, just as Retsinas would predict.

Generally speaking, the increase in sales and decrease in sales prices is being fueled by bargain hunters, foreclosures and the sale of distressed properties. Credit is so tight that many who would have been qualified for a mortgage just a year ago and no longer in the running. Investors are being asked to put down as much as 50% on commercial properties and those applying for non-conforming loans must often put down 20% or more. Indications are that 45% of sales nationwide are coming from the “distressed” sub-market, which typically sell at a 20% discount. That, in turn, is depressing the market for sales across the board and, as noted, it’s typically brutal in select states.

The number of homes for sale on the market in Maryland should give an indication of how confident home sellers are in getting their price. Howard County real estate shows us that there are just over 1,500 properties listed in the Maryland MLS at present, while there are currently over 5,000 Baltimore City homes for sale. Those numbers will probably have to fall in order get supply and demand back into some semblance of equilibrium - a fact that is not exactly good news for real estate agents in Maryland.

Loan modification programs - all of which, until now, have focused on those who are delinquent - have been talked about ad nauseam on discussion boards and in the comments sections of blogs all across the real estate “blogosphere.” Many have become so fed up that they’re ready to dismiss the entire country as one where accountability is dead. I’ve actually been one of them, but today I learned about a new program that, somehow, I had been unaware of.

It’s called “Making Home Affordable” and, if what the website notes is true, it’s a loan modification or loan refinancing solution ONLY for those who are NOT behind on their payments. This one, at long last, is for the responsible people who are scrapping by despite being laid off, having a serious change in their financial situation and even those who purchased their home responsibly but got “caught” in the inflated prices of the middle of the decade.

Answer “yes” to the questions below, and you just may be eligible for assistance:

Is your home your primary residence?

Is the amount you owe on your first mortgage equal to or less than $729,750?

Are you having trouble paying your mortgage?
For example, have you had a significant increase in your mortgage payment OR reduction in your income since you got your current loan OR have you suffered a hardship that has increased your expenses (like medical bills)?

Did you get your current mortgage before January 1, 2009?

Is your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner’s association dues, if applicable) more than 31% of your current gross income?

So…there you have it. As of now, only the “servicer” of your loan can determine your true eligibility. As of April 4, 2009, however, those with loans that are owned or have been securitized with Fannie Mae can work with any Fannie-approved lender.

For those who didn’t hear of the news yesterday that the Federal Reserve plans on pumping $1.2 trillion in the U.S. economy, let me assure you that this is BIG news. It was no surprise that the Federal Open Market Committee kept the federal funds rate at .25%, and economists expect that rate to stay there for the remainder of 2009 and perhaps even into 2010.

The announcement that the Fed would buy $300 million to purchase long-term government bonds, however, raised eyebrows and encouraged enthusiasm at a time when such sentiment is in short supply. The Fed also announced that it would purchase an additional $750 billion in mortgage-backed securities that would be guaranteed by Fannie Mae and Freddie Mac.

As a student of economics in college, this would have been the type of news we spent an entire macro economics class discussing (or perhaps multiple classes). Government spending is nothing new, of course, but make no mistake, this is not “government spending” in any traditional sense. It’s more like “government investing,” both in the instruments themselves (10 year t-bonds and mortgage-backed securities) and in the U.S. economy.

The move to invest in the 10-year bonds is not unprecedented, but the last time it happened was in the 1960s (yes, over 40 years ago). That was before I was born, so forgive me if I’m a bit excited about what is *nearly* unprecedented.

For those not entirely in tune with credit and financial markets, the 10-year bond can be thought of as the bellwether for 30-year mortgage rates. The two don’t have a definitive spread, but the general concept is that they move in concert, for the most part. By purchasing such a huge chunk of 10-year treasuries, the Fed is driving up the price of the bonds which, in turn, drives down the yield (percentage rate). So, when those 10-year t-bonds go down (they dropped from 3.01% to 2.5% yesterday - the largest decrease in over 20 years), mortgage rates follow suit.

What’s that mean for Maryland real estate agents, mortgage brokers, home owners and would-be home buyers?

Well, for mortgage brokers, it means rates in Maryland have fallen to just about 4.5%, without points, for those with excellent credit. That rate may fall even further in the coming days, so those with decent credit (or better), will have every incentive to re-finance or buy a home. For agents, it means that more people (the smart ones) will be taking advantage of the combination of depressed prices and low rates (neither of which should be around for TOO much longer) and get what is perhaps the deal of a lifetime. For homeowners, it means they can refinance AND that the hit they’ve taken on their equity should return sooner rather than later.

What, then, is the downside to the Fed’s move?

Well, the dollar already declined fairly sharply against foreign currencies and fears of inflation have re-entered the picture. The Fed essentially “created” the money it’s using to make these investments, so in very basic terms, more money added to the economy = less value per dollar. Under normal circumstances, such a move may crush the economy, but prices have actually declined for some goods of late, which means that as long as the Fed takes its foot off the accelerator in good time, long-term inflation should not be a major concern. Balancing growth with inflation fears is, of course, always a concern, but that’s the Fed’s job (among other things).

Rep. Barney Frank (D-Mass.), who is chairman of the House Financial Services Committee, didn’t heed warnings by the Bush administration in 2003 when they said that something was amiss at Fannie Mae and Freddie Mac. He proved short-sighted again in 2005 when John McCain and others put forth a bill for stricter lending practices from the two mortgage giants.

Now, however, good ol’ Barney realizes that something’s not quite right, claiming that “the current model is broken.” Indeed, Mr. Frank, that’s what some of your colleagues in Congress and the previous vilified presidential administration were trying to tell you years ago. At that time, of course, Frank was in a relationship with a Fannie Mae executive and claimed that stricter lending practices would have made it difficult for “financially disadvantaged” folks to obtain financing for home purchase. Never mind that in this context “financially disadvantaged” means “most likely to default on mortgage payments.”

In what Frank likely hopes is a “better late than never” move, Frank spoke at a breakfast meeting recently hosted by the Center for American Progress where he asked all the federal housing-related organizations to forward their ideas for restructuring Fannie Mae and Freddie Mac.

There is no word yet on what the likely outcome with be of any restructuring, though some have suggested turning the two mortgage giants into cooperatives that would be owned by mortgage lenders.

Oddly, and quite unexpectedly, housing starts jumped in February, 2009, showing a 22.2% increase over January. Though the increase was welcome news in some corners, housing construction remains 47.3% off the mark from last year and most of the February gain came from the construction of apartments, which tend to be more volatile than construction of single family homes.

The bottom line is that the increase is more an anomaly than any truly good news, and for those taking the long view, an increase in housing construction (and therefore housing supply) isn’t really a good thing at all.

In Maryland, for example, the real estate market has been hit across the board, though the state’s homeowners are suffering less than their counterparts in such states as Florida, California and Arizona. Building more houses, of course, increases the available supply for would-be buyers (what few there seem to be), thus potentially driving down prices and forcing homeowners who wish to sell their homes to either wait longer to get an offer or lower their price.

That seems especially true for homeowners hoping to fetch $400,000+ for their homes, as that number seems to be a magic barrier, above which homes tend to linger on the market unless they are very competitively priced, and below which homes seem to be selling a bit quicker. I’ve also noticed that some markets seem to be not affected at all, which seems odd, but it really is true.

Townhomes for sale in Arbutus, for example, seem to be solidly within the $200,000 - $240,000 range still, though they are sitting on the market longer than during the real estate “boom.” Conversely, the $800,000 single family homes on the market in Ellicott City and Columbia seem to be languishing. This is all anecdotal - merely the result of my casual observation - but it seems to be holding true that there are “tiers” in Maryland real estate that are holding fast in terms of market pricing and liklihood of attaining a sale.

A report put forth by the Mortgage Asset Research Institute showed that mortgage fraud jumped 26% in 2008. While Rhode Island, Florida, Illinois and Georgia ranked first through fourth among the 50 states, Maryland came in at 5th on the list, a black mark against our state that, generally speaking, has weathered the real estate downturn better than most markets.

The data collected for the report came from mortgage lenders, bankers and insurers and indicated that most of the mortgage fraud incidents in Maryland were related to loan applications. Maryland had the highest percentage of tax and return and financial statement fraud incidents in the nation.