Feature

Ask Eli: Impact of Coronavirus on the Real Estate Market

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: How will the threat of Coronavirus impact the real estate market in 2020?

Answer: I wasn’t planning to write this, it seems a little click-baity (now my “Trump’s Impact on Real Estate” column has some competition!), but I got the question four different times in under 24 hours last week so here I am writing about it.

Too Early To Know

Nobody knows how Coronavirus is going to impact the real estate market over the next month or the next ten months because we don’t know what the real impact of the virus will be on public health and markets. According to President Trump, it could disappear one day “like a miracle” and according to others, we could face a devastating pandemic.

Yesterday’s stock market closed down nearly 8% and this morning, the Futures were up almost 4%. Uncertainty slows the real estate market down and the only certainty right now is how uncertain the markets and public are about COVID-19. It’s hard to see how this type of uncertainty doesn’t create a drag on real estate across the country, the question is how long it will last.

Beyond the uncertainty, you have the very real impact of a sharp decline in investment/retirement accounts that many people use for down payments. With many accounts down double digits over the last two weeks, some buyers may reconsider their decision to sell stocks right now.

On the other hand, interest rates are historically low, hitting all-time lows last week and the real estate market across the greater D.C. Metro has been on fire since January so it’ll take a major shift in demand to slow things down as we head into peak buying season.

What I’ve Heard

So far, what I’m hearing from clients, colleagues and other industry partners (lenders, title, etc) is that buyers are hoping the Coronavirus slows the market down so they can have a better opportunity to buy, but there seems to be very few people actually pulling out of the market or reducing offers because of it.

Currently, buyers still seem more motivated by historically low rates and lack of buying opportunities than they are concerned that the likely impact of the virus. It seems that long-term confidence in local real estate is still a stronger influence on people’s decisions.

I think this mindset could change quickly, having broad negative effects on the local real estate market, if markets continue to tank, systematic failures in the market appear (e.g. Mortgage-backed Securities in 07-08), or people begin experiencing more direct effects of the virus like work/school closures or people they know testing positive.

This is an important change to watch for if you’re considering putting your home on the market in the coming weeks.

Don’t Overvalue Speculation

It’s important to distinguish between fact and speculation and not overvalue speculation. If you spend 30 minutes online today, you’ll be able to find an assortment of well-supported reasons why the markets is on the brink of another recession as well as well-supported reasons why everything will be just fine, with growth ahead.

Your decision should be rooted in things you can rely on like how long you can live happily in a home (nothing creates value like longer ownership periods) and what your best alternatives are to buying (renting, staying put) or selling (do you have a better utilization of your equity?).

Of course, you want to consider the national, regional and local economy as well as neighborhood trends, development pipelines and other factors that will influence appreciation/depreciation potential, but be careful not to overvalue speculation. 

If you’d like a question answered in my weekly column or to set-up an in-person meeting to discuss local real estate, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at www.EliResidential.com. Call me directly at (703) 539-2529.

Eli Tucker is a licensed Realtor in Virginia, Washington D.C., and Maryland with RLAH Real Estate, 4040 N. Fairfax Dr. #10C Arlington, VA 22203, (703) 390-9460.

Rosslyn Startup Reshaping AI for 5G Pulls $5 Million and Defense Industry Attention

By Vernon Miles

Sponsored by Monday Properties and written by ARLnow.com, Startup Monday is a weekly column that profiles Arlington-based startups and their founders, plus other local technology happenings. Monday Properties is proudly featuring a rare leasing opportunity at 1101 Wilson Blvd: 5 contiguous floors with exceptional views, building signage opportunity and brand new amenities. Enjoy all the perks of easy access and ample parking; a variety of food trucks at your front door; and enviable walkable amenities. Join YEXT and other leading tech companies at this vibrant location.

Rosslyn-based tech startup DeepSig recently raised $5 million to help develop artificial intelligence that can effectively integrate with 5G wireless systems.

“The additional funding will accelerate DeepSig’s AI and machine learning (ML) software development and deployment to improve performance and security while reducing power consumption and cost in 5G and other wireless systems,” the company said in a press release.

The company aims to build its AI from the ground up to focus around 5G coverage, rather than adapting decades-old algorithms. DeepSig says its software will be able to detect the local coverage conditions and “improve user data rates and dramatically reduce the amount of hardware and hence power.”

The new funding also shows that the company has caught the eye of some local military contractors, with some of the investment coming from Lockheed Martin Ventures, the venture arm of aerospace contractor Lockheed Martin.

“The advanced technology developed by DeepSig can optimize communications within a wide spectrum environment,” said Chris Moran, vice president and general manager of Lockheed Martin Ventures. “Applying deep learning and artificial intelligence to the application of real-time signal processing is an impressive capability. We are pleased to be a part of this endeavor and work to integrate the software into programs.”

Photo via @deepsignl/Twitter

Legal Insider: Self-Reporting Security Clearance Issues

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 John V. Berry, Esq.

Government contractors, federal employees and military personnel holding security clearances have a duty to self-report security issues that happen between investigations.

Not reporting timely security concerns can lead to a loss of one’s security clearance in itself. Unfortunately, there are often uncertain about self-reporting and when and how it applies to a clearance holder.

The Duty to Self Report

The duty to self-report was best defined by an administrative judge from the Defense Office of Hearings and Appeals (DOHA) in a 2001 case: “[I]t is the responsibility of security clearance holders to report events which negatively affect the status of the security clearance holder or the facility. [A]ny information… [which] reflects adversely on the integrity or character of a security clearance holder should be reported to security personnel to avoid compromising situations that make the security clearance holder vulnerable to coercion, exploitation, or duress.”

Examples of What Might be Reported

A reportable security concern is an incident that falls under one of the Adjudicative Guidelines contained in Security Executive Agent Directive 4 (SEAD 4). In most cases legal counsel should be consulted to determine how to self-report an issue. The following are just a few of the more common examples of security issues that could trigger a duty to self-report:

  • An individual uses illegal drugs (including the use of marijuana even in states or countries where legal locally). This can be a very complicated security concern given the intersection of criminal law and clearance law where legal advice will definitely be needed.
  • An individual is arrested. The timing and substance of reporting this incident will be important so legal advice will be needed.
  • An individual petitions for bankruptcy. Because filing for bankruptcy bears on financial considerations under SEAD 4, the individual should likely report the filing as soon as possible to his or her security officer.
  • An individual marries a foreign citizen. Because marrying a foreign citizen can raise foreign influence issues under SEAD 4, it most likely will trigger a duty to self-report.

When Should a Security Concern be Reported?

When an individual who holds a security clearance determines that a security concern requires self-reporting, it is important to do so as soon as timely as possible. The typical procedure for doing so is to notify one’s security officer of the security concern. The security officer may simply take note of the situation, report it or take other action.

The individual almost always feels embarrassed to self-report a security concern. However, not reporting an incident can lead to the loss of an individual’s security clearance. If an individual has questions about what should be reported, he or she should seek legal advice from an attorney experienced in security clearance law as soon as possible. There are risks to self-reporting, so it is important to seek legal counsel prior to doing so where possible.

Contact Us

If you are in need of legal representation or advice on the reporting of security clearance issues or any other security clearance matters, please contact our office at 703-668-0070 or through our contact page to schedule a consultation. Please also visit and like us on Facebook or Twitter.

Rethink Energy: Vote Today!

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.

The Virginia primary is over, but we aren’t here to talk politics.

Below is a poll that will help us help you. We can all take solace in knowing that these votes won’t define our country’s fate.

Let us know the top 4 event types you think the Rethink Energy program should focus on this year.

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:

1335 14th Street N.
3 BD/4 BA, 1 half bath villa/townhouse
Agent: Kv Realty
Listed: $1,998,888
Open: Saturday 2-4 p.m.

 

1819 N. Highland Street
3 BD/3 BA, 1 half bath single-family home
Agent: Prestige Realty, Llc
Listed: $1,450,000
Open: Sunday 2-4 p.m.

 

424 N. George Mason Drive
4 BD/3 BA, 2 half bath villa/townhouse
Agent: Compass
Listed: $1,049,000
Open: Sunday 1-4 p.m.

 

2319 N. Glebe Road
4 BD/3 BA, 1 half bath villa/townhouse
Agent: Re/Max Distinctive Real Estate, Inc
Listed: $869,000
Open: Sunday 1-4 p.m.

 

2628 N. Potomac Street
3 BD/2 BA single-family home
Agent: Optime Realty
Listed: $750,000
Open: Sunday 2-4 p.m.

 

1245 N. Pierce Street #1
2 BD/2 BA condo
Agent: Samson Properties
Listed: $625,000
Open: Sunday 1-4 p.m.

 

1200 Crystal Drive #514
2 BD/1 BA condo
Agent: Optime Realty
Listed: $499,900
Open: Sunday 2-4 p.m.

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.

Okay, so I know I’ve been talking about mortgage rates for the past couple weeks, but now they just hit ALL TIME record lows! The average for a 30-year fixed just hit 3.29%, and it’s very possible you can get lower than that, perhaps below 3%!

But enough about mortgage rates! Usually this low-rate environment would spur an uptick in purchases, and while that is true around the country, it is not true in Arlington as there is almost nothing to buy. We have a very unique and dynamic market here in Arlington!

There are currently 171 homes for sale in Arlington, 100 are detached homes, 11 are townhouses/semi-detached and 60 are condos.

Sellers listed some 68 properties for sale this week. Buyers ratified 46 contracts, 29 of which were homes that had been on the market one week or less.

Inventory has crept back up to about one month’s worth of inventory, up a bit from our low of ¾ month in February. This is something I’ll be watching closely as the spring market shifts into an even higher gear to see if this is a trend upward or just a brief slowdown in absorption of available properties. Ratifications on new listings are still quite strong — almost 50% of new inventory is being absorbed week over week.

Global market turmoil is on the minds of buyers and sellers alike, and we’re all curious how things will shake out. The rapid spreading of coronavirus cases and extreme fluctuations in stock markets have many wondering if we’re on the brink of a recession. While I can’t answer that definitively, what we’re still seeing here in Arlington is full speed ahead.

Remember, markets go up over long enough periods of time, but in the short term, they can either jump up sharply or decline similarly. The price of your home only matters on the day you sell it and should always be looked at as a long-term investment.

To help differentiate our current situation to that of the Great Recession a bit, we’re in much better shape than we were in 2007 and 2008. Mortgage lending is still much more restrictive and I’m seeing mostly very well qualified purchasers in the marketplace. I don’t see those who are stretched too thin and buying something they can’t afford.

Buying power is way up from pre-Great Recession. This is a result of already-low interest rates so buyers are also getting more home for their money. This presumably allows them to stay put for longer as they have more room to grow into it, which can have positive effects down the road — again, a home is supposed to be a long-term play.

Thanks for reading and enjoy your weekend! I’d love to hear from you in the comments below — let me know how I’m doing and if there is anything you would like to see covered in Just Listed.

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.

Statutes of Liberty: Client Spotlight — Our Client Became a U.S. Citizen Today!

By ARLnow.com Sponsor

This sponsored column is by James Montana, Esq. and Doran Shemin, Esq., practicing attorneys at Steelyard LLC, an immigration-focused law firm located in Arlington, Virginia. The legal information given here is general in nature. If you want legal advice, contact James for an appointment.

We frequently use this space to talk about changes in immigration law and the challenges that our clients face. Today, we want to go a bit off topic and spotlight a client who exemplifies why we love our work.

Ms. S., who was born in 1943, came to the United States legally in 1993 and has had a green card ever since. Ms. S. approached the Borromeo Legal Project, Inc., a nonprofit associated with St. Charles Borromeo Catholic Church in Clarendon, to ask for help in applying for citizenship. The Borromeo Legal Project provides free English tutoring and pro bono legal representation to clients in need.

As part of our commitment to pro bono service, we agreed to represent Ms. S. in her naturalization application.

Ordinarily, applicants for U.S. citizenship have to be able to speak, read and write basic English. Ms. S. was exempt from this requirement, based on her age and her long residency in the United States. Ms. S. is also starting to have memory issues, which affected her ability to take the U.S. history and civics exam.

Despite her memory challenges, Ms. S. studied the civics and American history questions diligently with the help of her supportive family. When we met to prepare for her interview, she was extremely nervous about the civics test. We submitted a medical exemption request which, if accepted, would have exempted her from the U.S. history and civics test.

On the day of the interview, we found out that her medical exemption request was denied, which meant that she would have to pass the history and civics test with the aid of a translator. Luckily, the U.S. Citizenship and Immigration Services officer spoke Spanish and conducted the entire interview in Spanish with Ms. S.

The officer was friendly and did everything she could to help Ms. S. feel comfortable. Ms. S. passed the civics exam and everyone in the room, including the officer, clapped and congratulated her. Ms. S. was so relieved that she began to cry. The rest of the interview went off without a hitch.

Today, Ms. S. is taking her oath to become a United States Citizen.

We are proud to work with the Borromeo Legal Project, proud of our work with Ms. S., and glad to share her story with you. If you know someone who has a green card and would be a good candidate for pro bono citizenship representation, please let us know, either directly or by referring them to the Borromeo Legal Project application page.

As always, be in touch with us directly if you need legal advice. If you have other sorts of questions, comment below. We love comments and will reply to all we can.

Small Biz Focus: Nominate Your Favorite SWaM Business — Deadline March 20

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

By Tara Palacios

What’s the Virginia SWaM Program you may ask yourself?

The SWaM Procurement Initiative was established to enhance business opportunities for small, women and minority-owned businesses and to ensure a level playing field for all small businesses in the Commonwealth of Virginia. SWaM is the acronym for Small, Women- and Minority-owned businesses. A SWaM vendor is a business that has been certified by the Virginia Department of Small Business and Supplier Diversity and is listed in the SWaM Vendor Directory.

How can I win a SWaMmy?

The Commonwealth of Virginia in partnership with Arlington Economic Development’s BizLaunch is honoring businesses who are certified small, micro, woman-owned, minority-owned and service- disabled veteran-owned *SWaM kicking-off Business Appreciation Month (BAM) May 2020.

The SWaMmy Awards celebrate the successes and the steadfast achievements of our diverse business community in Virginia — who reflect and support our government efforts each day. Year-over-year, small businesses play a fundamental part of our Virginia business ecosystem which is why we are honoring the best of the best.

We need your SWaMmy nominations by COB March 20

Is there a small, micro, woman-owned, minority-owned, or service-disabled veteran-owned business in your Virginia community you’d like to see honored? We cordially ask you share the nomination form with them today.

Simply click here and have the business fill out their personalized information on SurveyMonkey. Be as detailed as possible. We are seeking SWaM businesses in the Commonwealth that have made a direct contribution to their community as well positively growing, and have a unique story to tell.

The top five nominees in each category will be invited to attend the SWaMmy Awards in Richmond on May 4, at the Omni Richmond Hotel from 5-8 p.m. Small businesses are eligible to apply if they receive their SWaM certification by COB March 20.

Arlington Pet of the Week: Fergus

By ARLnow.com
1/3

Meet Arlington’s newest Pet of the Week, Fergus who is celebrating 10 years since being adopted.

Here is what Fergus’s owner has to say about life here in Arlington:

Fergus is a 10 year old diplodog who has lived in Jordan, the United Kingdom, and is moving to South Korea this summer.  When not making friends for the United States overseas, he calls Arlington home.

Fergus is happy dog who wears his heart on his collar — you never have to guess what he is feeling (hungry, usually hungry).  He loves hiking, swimming, traveling, eating, hiding bones from his cousin Samson, and eating.  He also likes to help around the house and is particularly adept at gardening (digging holes in the yard) and overseeing all food preparation and cleanup.  Dislikes include being woken up suddenly, skateboards/scooters, cats, and missed meals.

Fergus was adopted from Lost Dog and Cat Rescue Foundation 10 years ago this March.

Want your pet to be considered for the Arlington Pet of the Week? Email [email protected] with a 2-3 paragraph bio and at least 3-4 horizontally-oriented photos of your pet. Please don’t send vertical photos, they don’t fit in our photo galleries!

Each week’s winner receives a sample of dog or cat treats from our sponsor, Becky’s Pet Care, along with $100 in Becky’s Bucks. Becky’s Pet Care is the winner of eight consecutive Angie’s List Super Service Awards, the National Association of Professional Pet Sitters’ 2013 Business of the Year and a proud supporter of the Arlington County Pawsitively Prepared Campaign.

Becky’s Pet Care provides professional dog walking and pet sitting in Arlington and all of Northern Virginia, as well as PetPrep training courses for Pet Care, CPR and emergency preparedness.

Dominion Hills Mansion With a Curious History Could be Headed to Market

By Vernon Miles
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Rumor has it the Febrey-Lothrop House (6407 Wilson Blvd) — the home on a huge lot at the corner of Wilson Blvd and N. McKinley Road — could be headed to market soon.

The 9+ acre parcel, which includes the main house and two other side buildings, is one of the last large pieces of contiguous property of its kind in space-constrained Arlington.

Officials have recently been made aware that the property was for sale, according to Arlington County spokeswoman Jennifer Smith. The property is listed as a “generational” site in the county’s Parks Master Plan (page 162) — a place that could be potentially acquired and turned into a public park, although it’s just a block from Upton Hill Regional Park.

The county, with its need for land for schools and public facilities, might also consider it for other uses.

The house sits removed from the main road, near Seven Corners, on a long driveway. It’s an isolated, wooded retreat even though it’s just two miles down Wilson Blvd from the high rises of Ballston. The exterior of the house is in a disheveled state. Windows are broken, paint is peeling away from the side of the building, foxes drink from rainwater in the clogged pool.

The property’s financial value is in the large tract of mostly undeveloped land.

“In terms of development potential, the price (of around $30 million) is reasonable, as the land is already zoned for single-family homes and/or townhouses development,” local activist Suzanne Sundberg, who supports converting the property into a park and potentially a school, told ARLnow. “With so little undeveloped land in the county that comes on the market once in a blue moon, we cannot afford to be picky about location. Land is land.”

Sundberg noted that, should the property be developed as housing, it could stress already-crowded local schools.

“With the proposed upzoning of single-family neighborhoods, the property could hold 2, 3 or even 4 times as much housing as the current estimate [of] 67 townhouses,” she wrote.

The property also holds some sentimental value in its long and curious history of opulence.

“The expansive size of the property… with a number of domestic and agricultural outbuildings surrounded by mid-twentieth-century development, adds to the grandeur of the main dwelling,” an architectural survey of Arlington prepared in 2009 said.

The earliest records of the property show a house being built at the then-rural property in 1855. The original building, called Fairmount, no longer exists but later additions to the property were incorporated into the new structures.

The property was purchased by Alvin Lothrop — one of the founders of the Woodward and Lothrop department stores chain — in 1898. By 1907 the Fairmount building was destroyed and replaced with the colonial revival style home, inspired by George Washington’s Mount Vernon.

Lothrop died in 1912, and the family maintained the estate through the Second World War, when it was reportedly leased to Howard Hughes, according to Arlington Magazine. Among the guests entertained at the house were movie star Jane Russell.

After the war, the home was purchased by local real estate developer, socialite and expert horseman Randy Rouse. When Rouse purchased the property, most of the acreage was broken up to form the Dominion Hills neighborhood, though he kept the house and the surrounding property.

Rouse was briefly married to The Honeymooners star Audrey Meadows. The stress of her commute from Arlington up to New York on Fridays reportedly took a toll on their short-lived marriage, according to local historian Charlie Clark.

Rouse died in 2017 at the age of 100. The business Randolph Rouse Interprises is still listed as operating out of the building.

Map via Google Maps

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.

Amid an incredibly wild ride for the stock market, we have a nugget of stability to report on the local level.

At the end of February, the Arlington County Board voted to keep the real estate tax rate steady for the 2021 calendar year. This means that the tax rate will remain at $1.013 per $100 of assessed property value through 2021.

This marks a change compared to the last two years in which Arlington residents experienced tax rate hikes as a result of approved county budgets.

Particularly in the heart of tax season, it’s vital to have your finger on the pulse on anything and everything that could affect your bottom line both now and in the future. Also, if you’re in the market for a new home, the experts at Arlington Realty, Inc. are always ready and prepared to help you navigate the complexities.

And now on to this week’s Just Reduced facts and stats:

As of March 3, there are 116 detached homes, 12 townhouses and 62 condos for sale throughout Arlington County. In total, 5 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.

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