Will 2015 be the year of the first time home buyer?

There is a lot of talk about 2015 being the year that many millennials will choose to purchase their first home. The shock of the great recession and rising student loan debt has pushed back home ownership for many, but the effects of time and some policy changes are putting first time home buyers on better footing to finally have a home of their own.

Here are a few reasons why 2015 my be the year of the first time home buyer: 

Job growth is up. Many people who were without the steady income needed to purchase a home are finding themselves in full time employment. Making the choice of where to settle easier.

Securing a loan is getting easier. In addition to countless loan options for first time buyers, mortgage rates are still at historic lows and new programs from FMH and VHDA are providing more flexible down payment options that were available even a year ago. State legislatures are also trying to help as well with programs like Virginia's First Time Home Buyer's Savings Plan.

Rent rates continue to increase. Rent keeps going up at the fastest rate seen in years, making the decision to buy even more appealing to long time renters.

Interests rates are predicted to rise. Interest rates have been low for long enough that it's widely predicted that they will begin to creep back up starting mid 2015. Savvy home buyers who've been waiting for the right time are likely to recognize the opportunity to lock in to our current low rates.

Given these points, and because I am personally sitting on the oldest edge of the millinnial generation (so I have a front row seat as all friends go through this) this year I've decided to regularly host a free seminar for first time home buyers. It's a pretty casual event where a local lender and I will walk you through the 8 steps to the home loan and home buying process while answering questions from the attendees. Our goal is to make sure that everyone who is thinking of buying a home this year starts out on the right foot.  If you'd like to attend please visit my website for more info about the Free First Time Home Buyer Seminar.

Whats an "affordable townhouse" in Northern Virginia?

I get asked a lot about "affordable townhomes" in Northern Virginia. 

The smart first question is "Well my friend, what do you consider affordable?" Since that can be quite different from family to family, person to person. Each buyer is unique in their needs and wants with their new home purchase. 

My focus is largely in townhomes in the Fairfax County Parkway corridor of Northern Virginia from Centreville east to Lorton. I live in West Springfield and talk about Burke VA a lot too. 

As a thought exercise let's say you're looking to purchase a town house in NOVA and want to spend $300,000 or less. Here's an idea of what your options would look like right now: 

As you can see there are a few options in the Springfield/Burke area, but not many. You'd have MUCH more choice in your new home if you chose to consider Centreville in your search. 

But let's say that Burke is where you want to end up - an increase in your price opens up many more options in Burke. 

  

I hope that this was informative for anyone thinking about buying a town house in Northern VA. If you'd like to discuss this in depth I'd be happy to chat, give me a call 703-303-2889.