Loudoun County Real Estate Statistics and News

Winery Thursday in Loudoun County - Breaux Vineyards

2009-09-04T12:14:14-04:00

Another unbelievably nice day on Thursday forced us back out to another Loudoun County vineyard - Breaux Vineyards in Purcellville. With over 100 planted acres on a 404 acre estate, it is definitely one of the biggest vineyards in the area and the views are awesome. It reminded us a little of the views from the vineyards in Sonoma.

When we got to the vineyard, Alyssa was our host and she served up 14 different wines for our $10 tasting. Included on the list was a 2002 Merlot that was awesome. They also make a wine from the Italian Nebbiolo grape. One of the great things about going to the vineyards and wineries in this area is the diversity of wines being made. Last week it was a Chambourcin from Fabbioli.

The views were spectacular, the wines were excellent and the weather was incredible. Visiting the wineries in Loudoun County is a great way to spend an afternoon. If you would like to join us on our Thursday afternoon excursions, join our Facebook Group or drop me an email. We also welcome suggestions for a winery to visit in the coming weeks.

Quick Statistics for Loudoun County Real Estate

2009-09-02T12:01:45-04:00

Here are some statistics about the Loudoun County real estate market that I follow on a regular basis as well as some interesting trends that tell a lot about the current market conditions.

Current Inventory - 922

At the beginning of August this number went below 1000 for the first time in 3 years and it has continued to go down. At the start of the year, this number was 1256.

Homes sold since Jan 1 - 3125

This is the lowest number since 2000. Last year there were 3306 sold in the first 8 months. 2007 there were 3312. Contrary to what you read in the papers, home sales are not going up, they are just not going down very much. FYI, in 2005 5291 homes were sold between Jan and Aug.

Pending Home Sales - 1241

This is the number of homes under contract but have not yet settled. That means there is a backlog of over 3 months of homes waiting to close. This number has been growing due to the incredible length of time it takes a bank to approve short sales. 775 of the 1241 are short sales.

Percent of Sales that are Distressed - 38.2%

Of the homes that have sold in Loudoun County this year, 1117 have been classified as foreclosures or short sales. That number has stayed relatively constant throughout this year but the mix has shifted to more short sales as the year has progressed.

Short Sale Tax Implications for Homeowners

2009-08-30T14:41:06-04:00

One of the most asked questions I get from homeowners selling their homes short is regarding the tax implications of the short sale. Up until now I haven't had a very good answer or a direction to point a homeowner regarding this topic. Now I do.

The Internal Revenue Service publication that handles this exact situation is Publication 4681. The name of it is Cancelled Debts, Foreclosures, Repossessions and Abandonments. Although it doesn't say short sales, a short sale is a cancelled debt.

In a short sale of a house, the cancelled debt is the difference between what is owed and what the bank gets at settlement. When the bank agrees to this loss and the homeowner does not have to repay it, they will almost certainly report the cancelled debt to the IRS. The question is does the homeowner now have to report the cancelled debt as income on their tax return. Prior to 2007, the answer was yes but Congress changed the code and now the answer is a little more complex.

Here is an easy to understand explanation of what the publication says:

If the loans were the original loans on the property and the house is your primary residence, you do not have to claim the cancelled debt as income.

If you refinance the loans and used any excess money to improve the home (and you can prove it) than you do not have to claim the difference as income.

If you used your house as an ATM and took money out to buy a car, vacations, clothes, pay off other credit cards, etc, than you will have to claim the amount that you took out that wasn't used directly to improve the property as income.

If the house is not your primary residence, than you might have to claim it as income but that is much trickier and you should consult an accountant.

This is just an explanation of what the publication says and is not accounting or tax advice and you should always consult a tax professional if you have any questions.

But IRS Publication 4681 is definitely a publication you should consult concerning the tax implications of a short sale.

Wineries in Loudoun County - A Visit to Fabbioli Cellars

2009-08-28T13:42:29-04:00

One of the most appealing aspects of living in Loudoun County is the ability to jump in your car, drive 20 minutes and find yourself at one of over 25 wineries in Loudoun County. Yesterday was one of those days.

With a couple hours of free time, Heather (my better half) and I drove up Route 15 to Fabbioli Cellars. We had heard good things about their wines and wanted to sit for a tasting. For $5 we tried 8 different wines including a couple from the nearby 8 Chains North winery.

If you have never been to a tasting at one of Loudoun's wineries I would suggest going on a less busy day. We went on a Thursday and we got top notch service and tasted a couple of different wines that we probably wouldn't have had we showed up on a Saturday afternoon.

There is a great article in the Washington Post about just how friendly and accessible the wineries and the wine makers are. It also gives some really good tips on how to get the most from the experience.

A great resource for Loudoun County wineries and vineyards is the Loudoun County Visitors Center.

There are also some great blogs dedicated to wineries and vineyards like Cellar Blog, DC Wine Country Blog, and Virginia Wine Time.

And if you are on Facebook you can sign up for the Fabbioli Fan page and get updates on events and news.

Former Greenvest Land Bought Back for 42 Cents on the Dollar

2009-08-26T07:45:53-04:00

The finance company that loaned Greenvest $130 Million for the 4 parcels of land in Loudoun County was the highest bidder yesterday during an auction of the property. The 4 pieces of undeveloped land had a total of 4,123 acres and each piece was auctioned off separately.

According to reports, iStar Financial initiated the foreclosure proceedings and was willing to pay as much as $91 Million for the land. In the end its total bids added up to $69 Million. With a reported value of $165 Million, this means that no other party, investor or developer, was willing to pay more than 42 cents on the dollar for the land.

Of course, the "reported" value was an overly optimistic value set by someone who had no intention of buying the property. Most likely this was the county's assessed value for tax purposes. The $130 Million loan that Greenvest took out on the property was more than likely based on being able to rezone the land, a plan that was denied by the Loudoun County Supervisors and led directly to the auction.

iStar will now work to find a developer willing to by the parcels and try to recoup some or all of the $69 Million it has invested in the land. But in a hostile environment for developers that includes increased proffers, denied requests to rezone, tightened financing options and an overall weak economy, it will be a difficult sell to say the least.

Largest Private Land Owner in Loudoun County Being Foreclosed

2009-08-25T09:15:21-04:00

Over 4100 acres of land is going to be auctioned off today at the Leesburg courthouse barring any last minute bankruptcy by the current owner, Greenvest. Greenvest had tried to rezone much of their holdings to allow 15,000 new homes to be built several years ago but the county denied their request.

The loan on the property is currently $130 Million. County officials are watching closely to see if the land sells for less than the "market price" of $165 Million because this could have a significant impact on taxes in the near future.

One of the co-owners of Greenvest, Ahmad Abdul-Baki, was quoted in 2003 when asked about future growth and development trends, "You have to allow for dips and changes that slow down that equation...Otherwise you are a fool." How right you were Ahmad.

Underwater Mortgages - An Interview on Nightly Business Report

2009-08-19T08:29:53-04:00

A story that has been getting alot of media attention lately is the impact on homeowners of owing more on there homes than the home is worth. Usually referred to as being "underwater", this financial situation is becoming a serious problem throughout the country.

It has led directly to the explosion of short sales and voluntary foreclosures and indirectly to the drop in consumer sentiment and a pull back in the American consumer's appetite for spending.

I was lucky enough to interviewed by Stephanie Dhue of Nightly Business Report yesterday and the segment ran yesterday on PBS nationwide. It is the second segment in this video.

Here are several stories regarding underwater mortgages.

The report from Deutsche Bank thatunderwater mortgages will hit 48%. This was quoted in the NBR report.

An in depth report on the effect of underwater mortgages and foreclosures by CoreLogic.

Report that currently 1 out of every 4 mortgages in America is underwater.

Another Loudoun County Advertising Casualty - Radio Station WAGE 1200

2009-08-03T09:34:03-04:00

The drop in advertising by local businesses has claimed another casualty. Radio station WAGE 1200 based in Leesburg has suspended operations. The station tried several different formats and models in the last 4 years but local advertisers were turned off to the most recent syndication format. Word is they are going to come back with a bigger signal.

Along with the demise of the Loudoun Easterner at the end of July, Loudoun County has lost two hyper local advertising mediums over the last 2 weeks. This is a direct result of the contracting economy. And even in a somewhat recession proof area the DC metro, business is still very difficult and business owners are tightening their purse strings in reaction to the slowing activity. And as in most cases, advertising is one of the first areas to be reduced or cut out completely.

And with the cheap, very cheap, online advertising opportunities, it was only a matter of time before the more traditional businesses began to lose too much revenue to sustain their outdated business models.

Sign of the Times - RIP Loudoun Easterner

2009-07-30T17:37:12-04:00

I just found out that the Loudoun Easterner has ceased to exist. Ironically I found out while reading the Loudoun Independent. Started in 1968, it published its last paper on July 22.

The reason I started writing a blog was because of the deterioration in the effectiveness of print advertising. Local newspapers were a staple of any real estate advertising campaign and in Loudoun County the paper most people read for real estate ads was the Easterner. But that started to fall off in 2006. My old company, CC Sells, used to take out full page ads and sometimes 2 full pages when the market was hot.

But the writing was on the wall for print advertising and newspapers. The slowdown in real estate and the high cost forced us to look for more economical choices such as Google Adwords and other electronic advertising opportunities.

Subsequently I began writing this blog. Fortunately for me, blogs have become a great replacement for print advertising and I now have a separate website for my real estate company, CompleteHomeRE.com.

Oh well. Rest in Peace, Loudoun Easterner.

Real Estate News Aggregation Site - Realdiggity

2009-07-28T15:05:42-04:00

I have been working on an aggregation site called Realdiggity that pulls all the best and most timely real estate news together into one place. I have added a lot of rss feeds from the best of the real estate blogs and websites. But if there are some that you want me to add let me know.

I put a widget in the sidebar that you can use to get to the site as well. The great thing about this site is you can rank the stories much like social bookmarking sites like digg and reddit. You can add a story from a non-real estate site that has a real estate specific story by using the submit button.

Please use this site as a resource when dealing with topics regarding real estate. This includes buying, selling, loans, interest rates, foreclosures, short sales, etc. You don't have to sign up, but that would be cool too.