Author: ARLnow.com Sponsor

Ask Eli: Impact of Coronavirus on the Real Estate Market, Part 4

By ARLnow.com Sponsor

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: What has been the impact of the Coronavirus/COVID-19 on the real estate market?

Answer: I hope you and your families are healthy and finding some productive ways to remain safely at home. It’s been great to see so much carryout and delivery activity at local restaurants, I hope we can keep our favorite establishments in business.

I want to shout out the Sunday evening manager at the South Arlington Ledo Pizza for the way he was expressing constant, sincere appreciation to every employee hard at work and each customer who came in. It was refreshing to hear such positivity.

This week I’ll cover some real-time market updates and take a look at how past recessions have impacted real estate.

March 30 Stay At Home Order — Executive Order 55

Yesterday afternoon, Governor Northam announced EO 55, at Temporary Stay At Home Order due to COVID-19 to further discourage gatherings and personal contact.

There was an immediate concern across the real estate community that the new order effectively shut down all real estate operations, but soon after Northam’s announcement, the Northern Virginia Association of Realtors (NVAR) and the Virginia Association of Realtors (VAR) announced that under EO 55, real estate business may continue to operate using best practices for social distancing and other measures recommended by the CDC, as well as avoiding any gatherings of 10+ people. Here is a link to the official NVAR comments.

That means that as of this morning showings, inspections, appraisals, closings, lending and other activities critical to a real estate transaction are all still allowed in Virginia/Northern Virginia. Public Open Houses are strongly discouraged and many companies have suspended them.

Personally, I think showings are the most questionable activity because you can make a strong case in both directions. If somebody needs to find a home, it’s fair to say that they need to see the home in person before making an offer. On the flip side, somebody seeing five properties on a Saturday afternoon to prepare for a purchase 6 months from now should not be out on showings. There’s certainly a level of personal responsibility required here.

Arlington Market Update

It seems that much of the Arlington and Northern Virginia market has softened in the past week. This is based on further decreases in showing activity and the negotiations I’ve been directly involved in or aware of via colleagues. We won’t have actual price data available for another 3-4+ weeks when homes start closing that were placed under contract during the COVD-19 lockdown period.

New inventory continued to flow into the market, but was down from the previous week. A healthy 63 homes went under contract, showing that there are still buyers out there, but many of them are likely securing better terms than they would have a month ago, and facing much less competition.

Showing activity is unsurprisingly very low, with the average showings per listing dropping to 2.25 over the past week. With an average of about 15 showings before a ratified contract, expect average days on market to start increasing. However, the showings that are taking place tend to be to ready-buyers so it should take fewer showings than it used to for the right buyer to surface.

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Open Houses in Arlington This Weekend

By ARLnow.com Sponsor

Looking for a home? There are plenty of houses and condos open for viewing this weekend.

Check out the Arlington Realty website for a full list of homes for sale and open houses in Arlington. Here are a few highlights:

4925 Old Dominion Drive
6 BD/5 BA, 1 half bath single-family home
Agent: Optime Realty
Listed: $1,600,000
Open: Sunday 2-4 p.m.

 

421 N. Upton Court
4 BD/4 BA, 1 half bath villa/townhouse
Agent: Optime Realty
Listed: $1,035,000
Open: Virtual Tour/Sunday 2-4 p.m.

 

3625 10th Street N. #401
2 BD/2 BA, 1 half bath condo
Agent: Re/Max Allegiance
Listed: $890,000
Open: Sunday 11 a.m.-1:30 p.m.

 

2819-D S. Woodrow Street #4
2 BD/2 BA, 1 half bath condo
Agent: Redfin Corporation
Listed: $449,900
Open: Virtual Tour/Sunday 1-1:45 p.m., 2-2:45 p.m.

Your Beermonger: Lager in the Time of Corona

By ARLnow.com Sponsor

This sponsored column is written by Nick Anderson, beermonger at Arrowine (4508 Lee Highway). Sign up for Nick’s email newsletter and also receive exclusive discounts and offers.

This was supposed to be a column about beer this week.

Well, it’s always supposed to be about beer but this one was supposed to be about the Lager I just got at Arrowine from Únětický Pivovar in Únětice, Czech Republic.

The beer is stunning: a double-decoction mashed, open fermented, honey golden dream of a Lager featuring malts from the 500-year old Malthouse Kounice and hops from the Žatec region. My friends at B. United sent a pressure — and temperature-controlled tank over, brought it back, and kegged off of it quickly enough to get this unfiltered, unpasteurized gem to a few accounts all over the country — and Arrowine was fortunate enough to be one.

Not only that, but of 3,500L brought to the States, we got 60L worth in the form of a pair of 30L kegs.

Make no mistake, I’m enjoying the hell out of the beer. So are many of our clients at Arrowine (I don’t expect it to last much longer past the time this column is published). It just feels… wrong to focus on it, and it alone?

So: How are you?

We’re holding up okay. Every day is an adventure right now: new guidelines, new closings, new SOP, but we’re here. We’re making it work however we can. Every day we’re getting a little more dialed-in on how the shop’s going to run to get us to the other side of this. I’ve been bowled over by our clients.

I assume a couple of you are on here reading right now, so thank you thank you thank you for your support. Not only in terms of the business itself, but for how many of you have reached out just to ask how we’re doing. I’m not sure I can truly explain what that means to us.

Perhaps I don’t have to. We all have friends in the hospitality industry and have had to watch it be just wiped out by this seemingly overnight. There are so many bars, restaurants, and yes, breweries that are just hanging on for dear life right now and those are the ones that haven’t already folded.

There are dozens of people I know who are suddenly out of work, and many who are putting in Herculean efforts to keep their ship afloat. Over the coming — who knows, weeks, months? — I’m hoping to be able to bring you some of their stories, and let you know how you can support them.

For now, stay safe, and enjoy what you can when you can.

Just Listed in Arlington

By ARLnow.com Sponsor

Just Listed highlights Arlington properties that just came on the market within the past week. This feature is written and sponsored by Andors Real Estate Group.

Our local real estate market is adapting to the COVID-19 pandemic.

The Virginia housing market exhaled a huge sigh of relief on Monday when Governor Ralph Northam issued Executive Order 53. This allowed all aspects of the real estate industry to continue working to assist buyers and sellers with their housing needs.

Appraisers, home inspectors, title companies, real estate photographers and other closely aligned businesses that real estate agents rely on to help buyers and sellers can continue operating, and mortgage lenders are still funding loans.

Fannie Mae and Freddie Mac adopted new guidelines for appraisers, allowing “exterior only” reports, and also adopted electronic recording, something most states already use but which had not yet been fully embraced at the federal level. Title/settlement companies are able to conduct settlements remotely via eNotary software.

Lender concerns over liquidity to keep lending have mostly been alleviated as a result of moves by the Fed to buy an unlimited amount of mortgage-backed securities. Mortgage rates are higher (around 3.65%), moving away from the low bond yields that they typically move in line with. This difference is known as a “risk premium” for nervous investors, and it is likely to narrow in coming weeks as things presumably settle out more.

The Arlington housing market is still rocking and rolling as we conclude a busy, fast-paced March despite social distancing, coronavirus fears and stock market volatility. While many open houses are canceled, you can absolutely call me or my team to get you in to see any listing you are interested in. Additionally, we’re putting plenty of listings on the market as we head into the busiest buying and selling season of the year, spring!

We’re taking many steps to minimize risk and are prepared to conduct listing appointments virtually if desired. Additionally, we use electronic signature software to execute agreements and contracts, can use Zoom or FaceTime for things like inspections, walkthroughs and even showings. Rest assured, we’re fully prepared to market your home and get it sold for top dollar, even during social distancing requirements and virus fears.

There are currently 211 homes for sale in Arlington. 113 are detached homes, 25 are townhouses/semi-detached, and 73 are condos.

Median list price of available properties is $­­­1,009,950, while the average is $1,163,017. Sellers listed some 79 properties for sale this week. Buyers ratified 58 contracts, 39 of which were homes that had been on the market one week or less.

PICKS OF THE WEEK — The Andors Real Estate Group is proud to have Just Listed two lovely Arlington properties this week!

The first is a fantastic end unit town home located at 3322 2nd Street S., Arlington 22204. This 3 bed/3 bath town home has a large rear patio, spacious bedrooms and a completely open main floor with an inviting and functional kitchen boasting stainless appliances, abundant cabinetry and granite countertops.

The second is a stunning Crystal City/National Landing condo located in the Waterford House, 1200 Crystal Drive #213, Arlington 22202. This 3 bed/3 bath 1,772 sq. ft. condo comes with a garage parking space, floor-to-ceiling windows and a 51-foot balcony to watch the comings and goings, including planes landing at DCA.

Click here to search currently available Arlington real estate. Call the Andors Real Estate Group today at (703) 203-1117 to talk more about buying or selling Arlington real estate. Below are eight homes that are new this week that I think you might like to check out.

Boring Title: Industry Update

By ARLnow.com Sponsor

Title insurance is boring, but Allied Title & Escrow is here to decode the jargon and make it (somewhat) more interesting. This biweekly feature will explore the mundane (but very necessary!) world of title insurance while sharing interesting stories of two friends’ entrepreneurial careers.

We wanted to keep those interested in real estate updated on how the virus has affected our industry, so here is an update on all 3 states in this area.

Following recent updates regarding state shutdowns, we wanted to keep everybody informed on the effect of the mandates in each jurisdiction. Financial institutions, including banks and title companies have been deemed essential so we will continue to be able to close transactions for the foreseeable future. While we will be able to continue to conduct settlements there will certainly be challenges and changes in our policies and procedures moving forward.

In usual circumstances, to allow for eRecording, the title agent must physically scan and index documentation via a technology portal to the Clerk, and someone physically located at the Clerk’s office must be there to accept, Quality Control, and input the data into the Official Records.

It appears that in almost all local jurisdictions that the Clerk’s offices will continue to accept e-recordings even if the employees are forced to work remotely. Our title insurance underwriter has agreed to continue covering the “gap” periods from closing through recording, in the event recordings are delayed due to shutdowns.

In other good news, under Dodd Frank, “title/settlement services” are considered part of the “Financial Services” sector, making title insurance agencies “essential businesses” to remain functional in case of shutdowns/quarantines.

Regardless of this allowance, the significant challenge of physically CLOSING the transactions remains (meeting with clients face-to-face in a confined room to sign documents, touch paper, pens and potentially infect staff, agents, lenders, etc.). We are quickly adapting to the ever-changing environment by limiting closing time, parties allowed to attend closing, and we are able to send notaries to conduct closings at your home either outside on your patio or the Notary can wait outside while you sign in the comfort of your home as long as they can verify that you signed the documents.

You may also designate a Limited Power of Attorney for a representative from our Company to sign the settlement documents on your behalf. This still requires you to sign the power of attorney in the presence of a Notary, but limits your interaction to that single document.

The title insurance industry has traditionally been an overwhelmingly paper-based industry, and it is only in the recent stages of moving to paperless, digital and completely-online. Thankfully, we are, and have been since our inception, leading the charge towards technologically streamlining the entire closing process. We are set up for Remote Online Notarization (RON) through Notarize and we also offer Earnnest for the delivery of ACH Earnest Money Deposits from your phone or computer.

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Small Biz Focus: 5 Biz Tools to Survive a Pandemic

By ARLnow.com Sponsor
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This column is sponsored by BizLaunch, a division of Arlington Economic Development.

By Alex Held, BizLaunch

While we are experiencing unprecedented times, it’s important to know we are in this together and we will overcome this as a community.

In challenging times, small business owners wear many hats and keep changing hats as they work to retain their staff and fight the effects of COVID-19. Today Governor Northam’s executive order goes into effect limiting gatherings to less than 10, closure of dining areas such as restaurants (restaurants may still offer takeout and delivery) and closure of public access to recreational facilities such as theaters, fitness centers and more. It truly is an unprecedented day.

Representing almost a quarter of all employment (47,834 jobs) in Arlington County, small businesses have always served as an integral component of the local economy encompassing 92% of all business establishments. Not surprisingly to what we have encountered, many of the early responses to Arlington Economic Development’s recent business survey indicated small businesses are feeling the pain.

If you haven’t yet, please take AED’s COVID-19 business survey. For the small businesses wearing more hats, here are five tools to survive a pandemic:

  1. New Grant Opportunity — Arlington/Alexandria Layoff Aversion Program: Layoff aversion funds can be utilized to help maintain business operations. Such examples include cleaning/sanitation service, purchase of software or remote access supplies such as laptops, or the purchase of an online sales platform. Applications are accepted through March 27 at 5 p.m. with award notifications on March 30. For more information or to apply visit the Alexandria/Arlington Workforce Council or join our webinar on Thursday with the SBA and the workforce council.
  2. SBA Disaster Assistance: Arlington businesses can apply for SBA Economic Injury Disaster Loans in which qualified borrowers can receive up to $2 million for working capital. In addition, SBA is implementing automatic deferment on existing SBA Disaster Loans through end of 2020. To help businesses in applying for loans, BizLaunch in partnership with the SBA for an online webinar on Thursday to provide businesses a forum to ask questions and learn what documents are required.
  3. Unemployment Insurance: For businesses who have had to lay employees off because of the COVID-19 outbreak, Governor Northam has directed that the one week waiting period to receive benefits be suspended. For detailed instructions on how to apply for unemployment benefits visit the Virginia Employment Commission or join us on Thursday to hear from the Arlington Employment Center and the SBA.
  4. BizLaunch Resources: We’ve been curating and providing resources to help businesses on our website to provide you with easy access to information as well as information on the virus.
  5. Webinars: All of our webinars including those on emergency management and our most recent on maintaining sales during a pandemic are available online and can be used to reference. New topics will be announced in the coming days.

Most importantly the BizLaunch team is here for you. We’re taking appointments by Microsoft Teams or over the phone, and we are here to answer your questions or to provide you with the tools you need to support your business during these challenging times.

Sign up for our newsletter to receive information about upcoming topics and information about additional resources. We look forward in seeing everybody safe and healthy soon; however, in the meantime, please stay in touch with us and let us know how you and your business are coping during these unprecedented times.

Just Reduced Properties in Arlington

By ARLnow.com Sponsor

Each week, “Just Reduced” spotlights properties in Arlington County whose price have been cut over the previous week. The market summary is crafted by Arlington Realty, Inc. Maximize your real estate investment with the team by visiting www.arlingtonrealtyinc.com or calling 703-836-6000 today!

Please note: While Arlington Realty, Inc. provides this information for the community, it may not be the listing company of these homes.

We’ve seen quite an uptick of Just Reduced homes in recent weeks.

Riding an incredible wave of news, with Amazon’s local HQ2 announcement leading the charge, the Just Reduced options were few and far between in 2019.

Here in 2020, amid the COVID-19 crisis, the numbers are telling us that more folks are willing to budge in terms of preliminary pricing to get their homes officially sold.

You’re living the daily headlines and it likely goes without saying: These are incredibly volatile times.

It’s never been more important to fully understand the value of the property you possess or, perhaps, the investment you’re about to make.

That’s where we, Arlington Realty, Inc., can step in and provide professional guidance. We’ve weathered some storms throughout the decades, and we have no doubt that we’ll weather this one and come out stronger. But, for the time being, we’re here to help you make an informed decision.

And, now on to this week’s facts and figures:

As of March 16, there are 144 detached homes, 27 townhouses and 75 condos for sale throughout Arlington County. In total, 16 homes experienced a price reduction in the past week.

Please note that this is solely a selection of Just Reduced properties available in Arlington County. For a complete list of properties within your target budget and specifications, contact Arlington Realty, Inc.

El Pollo Rico Now Delivering for the First Time

By ARLnow.com Sponsor
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El Pollo Rico, the oldest Peruvian rotisserie joint in the country located in Arlington Virginia is now offering delivery!

Delivery is within a five mile radius — one dollar delivery fee per mile —  and costs less than Postmates or Grubhub.

Starting today, March 23, orders in D.C. must meet $15.00 order minimum.

Delivery hours for D.C.: 11 a.m.-9 p.m.

Delivery hours for Arlington: 11 a.m.-9:30 p.m.

Call (703)-522-3220 for more information! Follow along on Instagram @elpolloricoarl.

El Pollo Rico is located at 932 N. Kenmore Street Arlington, VA.

Ask Eli: Impact of Coronavirus on the Real Estate Market, Part 3

By ARLnow.com Sponsor

This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. Please submit your questions to him via email for response in future columns. Enjoy!

Question: What has been the impact of the Coronavirus/COVID-19 on the real estate market?

Answer: I hope you are all staying healthy and sane(ish). My wife and I are trying to wrap our heads around school being canceled through the end of the academic year… yay!

Over the last two weeks, my Coronavirus columns (one and two) have included mostly anecdotal evidence on the impact of COVID-19 on the real estate market, but now we’ve been in this for long enough that I can start using market data to measure the true effects. It will be at least a few more weeks before we can measure the effect on prices, but we can look at things like supply, showing activity and contract activity now.

What I’m Seeing/Hearing

This past weekend, most Open Houses were canceled and over the last week showing activity has dropped off dramatically. However, there are still plenty of active, motivated buyers making offers. What I’m seeing/hearing right now in the D.C. Metro market is that competition is down, prices haven’t taken much of a hit (yet), and new listings are still coming onto the market.

Mortgage rates had their most volatile week ever last week as investors basically stopped buying mortgages on the secondary market, but the Fed stepped in and has promised to stabilize the market until our economy (hopefully) returns to normal. Here are two (one and two) good reads on what happened last week to mortgages.

Impact On The D.C. Area Economy

While not real estate specific, I want to share the excellent work of Jeannette Chapman, Director of the Stephen S. Fuller Institute at our very own George Mason University, which takes an in-depth look at how Coronavirus is likely going to impact the D.C. area economy, based on current projections. Notably, they determine that the D.C. area will not be as insulated from this recession as the 2008 financial crisis. Be smart, be careful with your money folks.

While I’m slightly off the topic of real estate, I wanted to share a great website for tracking global and domestic COVID-19 data in real time, with helpful visuals. This website was shared with me by Arlington resident/Mom Elissa David, who owns the Unbroken Body to help Moms heal their bodies after pregnancy. She has temporarily turned her website into a resource for all of us parents who have suddenly become home school teachers!

Now let’s jump into some relevant real estate market data.

Market Data

SUPPLY

The number of new listings this past week in Arlington jumped 27% over the same week last year and 6% over two weeks ago. The D.C. Metro experienced less dramatic increases in new listings, but increases nonetheless.

Anecdotally, it seems many homeowners who were planning to sell in the next 4-8 weeks are accelerating their timeline, fearing the uncertainty of the future economy. A boost in inventory from motivated sellers while demand continues to fall (see below) could lead to a drop in prices in the near future.

Nationwide, the number of listings pulled off the market spiked over the past week.

Nationwide Data

SHOWINGS

The average number of showings per listing in Arlington (first chart) have dropped each of the last four weeks from 10.44 showings four weeks ago to 2.91 showings this past week.

Showings in Washington, D.C. have dropped by 41.4% compared to this time last year. The tool I have to generate this data only offers statewide info, so I chose to use Washington, D.C. (yes, I know it’s not a state) instead of Virginia because the Washington, D.C. market is much more reflective of Northern Virginia than the Virginia market. Showings are down 32.9% across North America.

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Legal Insider: OPM Disability Retirement Issues for Federal Employees

By ARLnow.com Sponsor

This is a sponsored column by attorneys John Berry and Kimberly Berry of Berry & Berry, PLLC, an employment and labor law firm located in Northern Virginia that specializes in federal employee, security clearance, retirement and private sector employee matters.

By Kimberly Berry

Our law firm handles many different types of federal retirement issues in our representation of federal employees.

One of the more common types of retirement cases that we often handle involves the representation of federal employees in the disability retirement process before various federal agencies and the Office of Personnel Management.

Federal employees filing for disability retirement are typically covered under the Federal Employees Retirement System or the Civil Service Retirement System.

Federal employees should consider the following questions before they pursue OPM disability retirement:

How serious are the federal employee’s medical issues and are they linked to the federal employee’s position description duties?

When making a disability retirement decision, keep in mind that OPM evaluates your continued ability to work with your medical condition in the context of the duties described in your position description. If the medical disability is not deemed serious enough, or not fully supported by medical documentation and evidence, and is not sufficiently linked to your inability to “usefully and efficiently” carry out your job duties, then OPM may deny the disability retirement application.

How long is the medical disability realistically expected to last?

OPM requires that a medical disability be expected to last at least one year in duration. When considering whether to file for disability retirement, it is important for you to consider the expected duration of your medical disability. Disabilities with known shorter duration could be problematic for you in the application process.

Can a federal employee survive on a reduced annuity?

If you are considering filing for OPM disability retirement, understand that this type of retirement usually provides you with a lower monthly retirement annuity in comparison to full retirement. As a result, we recommend that you obtain benefit estimates from your human resources representative and consult with a financial advisor about the impact of a potential reduced annuity prior to filing for disability retirement.

Are there modifications to a federal employee’s current position that can be made to allow the federal employee to continue to work?

Oftentimes a federal agency will work with you to provide you with a reasonable accommodation (i.e., change in duties, hours, telework or other adjustments) that can make your current position and medical condition workable. This can often be the best solution, even if it is only a short-term solution.

As a part of the disability retirement process, the federal agency is required to certify that it is unable to accommodate your disabling medical condition in your present position. The agency must also certify that it has considered you “for any vacant position in the same agency, at the same grade or pay level, and within the same commuting area, for which [you] qualified for reassignment.”

Do your medical professionals believe that you should not continue in your current position?

This is an important consideration when filing for disability retirement. In most cases, physicians will be open with their patients about whether it is a good idea to keep working in their current federal employment position.

There are at least two reasons to discuss a possible filing for OPM disability retirement with your treating medical provider(s). First, your health should be of primary importance and a consideration when determining whether continuing in a job hinders or impedes your recovery. Second, physicians and their medical opinions are necessary and, in fact, crucial in the disability retirement application process with OPM.

OPM will require a physician’s statement about your medical issues, and the physician’s statement can either make or break the outcome of your disability retirement application.

When considering OPM disability retirement, it is important to obtain the advice and representation of legal counsel. You can contact our law firm through www.retirementlaw.com, www.berrylegal.com, or by telephone at (703) 668-0070, to schedule a consultation to discuss your individual federal employment retirement matter. Please also visit and like us on Facebook or Twitter.

Rethink Energy: Program Update

By ARLnow.com Sponsor

This regularly-scheduled sponsored column is written by the Arlington Initiative to Rethink Energy team (AIRE). This county program helps you make smart energy decisions that save you money and leaves a lighter footprint on the environment.

We hope that everyone is hunkering down safely and practicing appropriate social distancing as detailed on the County COVID-19 webpage.

Given the rapidly unfolding events, the Rethink Energy team wanted to provide an update on our programs and events:

March 25 Community Celebration and Community Kickoff to 2050

The event has been cancelled until COVID-19 has run its course. If you previously RSVP’d for the event we will notify you once we set a new date. Thank you to the more than 100 Arlingtonians that RSVP’d for the event. If others are interested in the rescheduled event — please RSVP here.

Solar and Electric Vehicle Co-Op

The Co-op plans to launch again given strong community interest and participation. A virtual information session will be held in April. We will announce the info session and kickoff here on ARLnow in our April 4th post.

Green Home Certification Program

Despite COVID-19, we know that many are already looking to the future. Are you thinking of renovating your home? Please take a look at our free Green Home Choice Certification program page to learn more.

Stay safe, take care of each other, and let’s take it one day at a time. We’re all in this together!

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