While D.C. is trying to figure out how the proposed 37 miles of streetcar routes will work to maximize the District’s transit connections and economic development, and the Fed is announcing that it has no plans to raise its interest rates any time soon (good news), the Federal Housing Finance Agency releases a report saying that housing prices in the Washington area posted the biggest year-over-year increase in the nation last quarter, jumping more than 10.5 percent. Wait! That’s a lot of good news in one paragraph. Can it be true?

Well yes. The FHFA report said that average prices in the Washington area were up 10.55 percent in the Q4 2009 compared to Q4 2008 (nationally they fell by 1.2%). Furthermore D.C. area prices were up 5.63 percent over Q3 2009.

It looks like KB Home saw this upward trend in the local market early and they decided to build their first development in the area since 2006. It is a new townhouse community in Alexandria, on Huntington Avenue near the Huntington Metro station, called Huntington Reserve, and it opens this weekend.

Huntington Reserve will include 85 townhouses, all being constructed as Energy Star compliant, with prices start in the high $400,000s and being primarily marketed toward first-time homebuyers.

If you are a first-time home buyer remember, there is still time to take advantage of the tax credit which expires on April 30th. Contact me to get the process started. If you were planning to buy soon it would be a shame to leave $8k on the table.

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