I have 2 words to say - wood stove.

Being historic home enthusiasts, many of my readers already have wood stoves and are enjoying the benefits of heating without the use of fossil fuels. This makes political sense and economical sense. We installed a Jotul wood stove this year and my family could not be happier. We are not yet deep into winter, but our goal is not to use our oil furnace at all. Nada! That means the several common rooms that benefit from the stove will be comfortable, while the upstairs bedrooms will remain chilly (perfect for sleeping). The last several weeks have been into the 30’s and our stove has risen to the task. We have also seen a change in our family behavior. We spend more time together around the stove in the evening, instead of in our private rooms. This is “living in the past” at its best. Looking beyond the lap top computers and the television, I can see my colonial family in front of the warm hearth - sewing & reading, and lovingly sharing the evening hours before bed.

This stove is one of the steps that my family has taken in our renewed efforts to tread more gently on the earth. The stove has evolved from its origins in the 18th century and is now quite efficient including catalytic filtering to reduce pollution. I would love your comments on this or any other vintage propositions. I am aware of other traditions and methods that have been lost to history that can benefit us today, but I would also be interested to learn more. In a global economic collapse (we must save money) and with an endangered environment (we must save the earth), there are lessons that we can learn from those that came before that can be healthy altrnatives and make alot of sense today.

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There was a time when the unique “one of a kind” nature of a historic home would add value to its appraisal, now I am afraid that era appears to be passing. Though historic homes are rarely subject to distress sales and people traditionally have purchased historic homes as long term residences, not short-term investments, the market for the later in this area may have finally brought the appraisal values of these vintage beauties down.  In a real estate market battered by a year of short sales, foreclosures and forced sales - following 3 years of price deterioration, the credit strapped banks are not only scrutinizing customers more carefully, they are increasingly critical of the property to be purchased. Until recently, there were enough truly unique homes sold that, in my experience, a case for comparables could be made when a willing seller and a qualified buyer agreed on a sales price. Mortgage lenders never liked the term “unique” when applied to a home they were contemplating lending money to purchase and appraisers usually struggled with comparables, but in my 6 years of specializing in historic home sales, I have never had a home not appraise, until now.

Mortgage lenders must now use “fire sale” home values to support the sale price of a rarely traded historic home. This has worked against contemporary home sales for quite a while, finally, in my opinion unfairly, the problem has caught up to the historic home market. Historic homes have always occupied their own market with only a passing nod to their youthful neighbors and subject to a very special and knowledgeable clientele. The irony is that a seller and knowledgeable buyer can agree on the value of one of these unique homes, but a hyper-risk weary mortgage lender will ultimately decide the deal.

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An extraordinary new listing in Savage Maryland. Beautifully Updated and Historically Preserved.  Offered at $1,999,900.       Facts & Photos VIRTUAL TOUR   Property Information Built in 1760, this grand “American Revolution Era” estate features significant historic detailing while catering to the comforts of 21st century living. This gated 6.7 Acre Historic Estate with Federal Style Mansion ws remodeled/restored in 2003. It is surrounded by mature trees, lucious gardens, expansive terraces, stone walls, a waterfall pond and backs to parkland.  There are 7 spacious bedrooms, 8 full & 2 half baths, and 2 are master suites w/FP’s. Modern upgrades include sprinkler, smoke detector system & 12 zone heat, and a “state of the art” gourmet kitchen. An in-law apartment, office, extensive storage space and a large laundry room (a 2nd laundry room is on the bedrooms level) occupy the basement level, while a grand foyer and staircase rise to the upper levels. This is a home full of nooks and cranny spaces, and includes rough in for an elevator. An incredible blend of history, beauty, comfort, architectural grade quality,  & technology, this is a home of rare distinction.  Detailed listing of upgrades and improvements Property History This extraordinary historic home was built by the Ridgelys of Howard County in 1760 on a tract of land called Harry’s Lott. The “plantation” changed hands several times, before being purchased by Joshua Barney at auction in 1809. He retained it until his death in 1818. More ownership history from the Historical Trust…  Early 20th c. photo & photo from 1945 Joshua Barney (1759-1818) Preview his biography Online A Biographical Memoir of the Late Commodore Joshua Barney Joshua Barney (1759-1818), American naval officer. Barney was born in Baltimore, Maryland. He left school at the age of ten and became a seaman in 1771. Early in the American War of Independence (1775-1783), he became a master’s mate on the sloop Hornet in Commodore Esek Hopkins’s squadron and distinguished himself in the capture of the island of New Providence in the West Indies. Barney was commissioned lieutenant in June 1776. He served on the sloops Wasp and Sachem and on the frigate Virginia. In April 1778 the Virginia was captured and Barney was tak en prisoner by the British. He was exchanged in August, after which he commanded a number of armed merchantmen. In 1780 the Saratoga, with Barney as first lieutenant, was captured by the Intrepid, and he spent nearly a year as a prisoner in Britain. Again released by the British, Barney was commander of the Hyder-Ally, an armed merchantman protecting a convoy, when it encountered and defeated the British frigate General Monk near Cape May, off the coast of New Jersey, in April 1782. Barney remained in the navy until May 1784, when he took up commerce and farming. In 1796 Barney returned to naval service, serving with distinction as chef de division (commodore) in the French navy until 1802. In the War of 1812 Barney was a successful commander of privateers. He joined the Maryland militia in 1814 at Bladensburg, Maryland, in its unsuccessful attempt to prevent the invading British from attacking Washington, D.C. Defeated after great resistance, Barney was wounded and captured. He died in Pittsburgh, Pennsylvania, in 1818. excerpted MSN EncartaResources for Joshua Barney Joshua Barney Sails Again! Commodore Joshua Barney’s Barge Color Painting of Commodore Joshua Barney Joshua Barney and the Star Spangled Banner Joshua Barney and the Battle of Bladensburg, War of 1812 The Hyder-Ally vs. the General Monk       National Register of Historic Places - Joshua Barney House

This information is deemed reliable, but not guaranteed.

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Last Friday was a very good day for real estate in the Washington DC area. On Friday, mortgage costs got cheaper in the DC area. The size of loans that can be guaranteed by Freddie Mac and Fannie Mae was raised to $729,750 (up from $417,000) in Montgomery, Frederick, Charles, Prince George’s & Calvert Counties (also DC & much of Northern VA) and raised to $560,000 in most other Maryland Counties.

There is more… Mortgages up to those amounts will now qualify for FHA insurance (up from $362,900).

What does this mean to home buyers & sellers? It is time to buy and sell. With any luck lenders will dust off the old and once unattainable jumbo loans, ease qualifying and lower the interest rate, so buyers, who have been waiting for the best time to buy a house, can get to the business of shrinking this inventory of unsold homes.

http://money.cnn.com/2008/03/06/real_estate/expensive_mortgages_get_cheaper/index.htm

What’s the catch? Well, the purpose of these changes is to stimulate home buying now, so the deal is only good until December 31, 2008. Yep. 9 months. That’s it. After that the unsold houses turn back into pumpkins and home buyers go back to dreaming of home ownership.

Can it get better than this? Yes.

Congress is nearing completion of a bill that would allow the FHA to provide safe loan alternatives to subprime mortgages and make homeownership more accessible.

http://money.cnn.com/2008/03/10/news/economy/fha_reform_upcoming/index.htm

This all bodes well for the DC area spring housing market.

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YouTube is one of the wonders (along with GOOGLE) of the times in which we live.

Thanks to YouTube.com, we can see things that were not possible several years ago - before amateur videographers roamed the earth documenting the everyday and the mundane. The theme of this selection is historic homes that have fallen from greatness to an abandoned and desparate state. There is hope for some, not for others, but all served as extraordinary vessels through which history has flowed.
  
On our website www.HistoricHomeTeam.com, we have begun a series based on the talents and hard work of those videographers who are documenting historic homes, restored mansions and Abandoned Treasures (see below or on our website). Select menu on the viewer to see all the video selections.

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There are so many historic home stories and so many proud historic home owners, this is an opportunity to CHAT about our historic homes. Tell us about your house, your improvements, your problems & disasters. Make us laugh. Make us feel sorry for you. Share your historic home philosophy. This is an open forum and civil discourse does not require signing in. Post your story or comment and let the hand hewn chips fall where they may…

Enter your thoughts below and click “Submit Comment”.

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     I know that this is my second blog this week about the positive aspects of this real estate market, but I am excited to read thoughtful and rational articles for a change in the national media. Those of us that are in it, have a different perspective from those who “report it”. Today’s Washington Post article by Kenneth Harney - Bits of Bad News Obscure A Big Truth About Wealth - echoes what most people in the business have been saying for over a year - yes, there has been an adjustment in home prices downward in the last year or so, but one has to be mindful that this pales next to the huge increase in the previous years. Harney begins his article - “With the daily bad news about the state of the housing market, it’s easy to lose sight of some larger economic realities: Despite declining prices in many markets, homeowners still control near-record equity holdings, just under $11 trillion.” He goes on to say, “The second-quarter equity number was down about $6 billion from the first quarter of the year but was $48 billion more than it was at the end of 2006.”  The numbers are large to be sure, but the proportions are not. As Harney continues, “in an $11 trillion marketplace, a $6 billion giveback in a cyclical correction is not a cause for panic.” In fact, it is extremely small .0005%. According to Standard & Poor’s Case/Schiller Home Index home prices in the Washngton DC area have more than doubled (over 100% increase) between 2001 and 2006, then dropped back 4.2% by August of 2007. Some areas are already showing price gains, but what if a housing market continues to show weakness, Harney is saying, “even 10 percent and larger average price drops in once-booming areas…have left owners with most of their paper gains intact.” If one focuses on the last year or so (as much of the media analysis has been), yes - the market does not present a pretty picture, but in the larger context, it is looking pretty darn good.  In fact, from 1997-2007, housing has beat stocks & bonds with an annual investment return of 10.93% (way ahead) and a volitility ranking of 2.07% (far lower). Harney concludes his article with - “The housing-price correction cycle continues in many — not all — parts of the country. It is sobering or painful for just about everybody except buyers. But in the absence of a recession or major capital-market crisis, the fact is that most homeowners’ equity stakes are intact, or even growing.”

      I believe that Mr. Harney has peeled away the bitter rind of speculation to which we are constantly exposed, inviting us to look into our own experience objectively with regard to the real estate market and assess if we are better off then when were before.  Think about it….if you purchased a DC area home in 2001 for $400,000 by investing $80,000 (20% down) and that house was then worth $800,000 in 2006, you made $320,000 on your original investment (not to mention the thousands in tax savings). What other market venue can make that kind of magic happen. If in 2007, your house is worth $720,000, then you made $240,000 over 6 years. The fact is a homeowner can expect substantial growth in their home investment, but it is a long term investment.

     The challenge for a seller is to appreciate the real estate market for what it is. He can still make a significant profit on the sale of his property, while being realistic about pricing, and then go on to purchase his next home benefiting from the low interest rates and large inventory. 

     The challenge for a buyer is to recognize that now is the time to invest in a home. It is a target rich environment, interest rates are historically low and many home sellers are pricing their properties attractively.

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