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.

New study shows rents increasing

Your rent keeps going up and it's not likely to change any time soon.

According to newly released data from the Bureau of Labor Statistics, rents are rising at the fastest pace in six years. Combined with vacancy rates at 20-year lows it is currently a "landlord's market" in American real estate with rent rates increasing faster than inflation.  

Builders are working on the demand side of the equation and more multifamily units are being built, however they will take time to be completed. Vacancy rates are projected to stay low for at least two years. 

Is it time for you to stop paying your landlords mortgage and start building equity in your own home? What questions are standing between you and home ownership? Attend my free class for first time home buyers to learn more. 

It's the most wonderful time of the year...

There are many reasons to buy or sell a house in the Winter.

"But winter is the slow time for real estate Nicole!"

      ...Exactly! :D

It's all relative, and slow does not mean non-existent. There are ALWAYS people in the market place - especially here in Northern Virginia. Fewer people in the market means fewer people who are competing with you - no matter if you are buying or selling. The market functions on supply and demand; lower competition can lead to successful transactions for both buyers and sellers. The people who are in the market this time of year are motivated ready to make it work so great transactions happen in the colder months.

Traditional 'wisdom' is that winter is a slightly better time for buyers, since they are less likely to be competing with other buyers - but data also shows that winter home sales in recent years have sold faster, with a increased chance of getting better than the asking price.

My take on this is that more often than not, those people who are in the winter market are taking a reasonable approach to the process. The Spring Fever can lead to unrealistic expectations on both sides, but in winter cooler heads often prevail.

No matter the time of year a home in good condition, priced correctly for the market, will sell quickly. No matter the time of year a buyer with great representation will be able to find the best home for them and negotiate a great contract for it.

If you'd like to talk more about Real Estate in Northern Virginia email me
nicoleduffey@kw.com

October 2014 Northern Virginia Housing Market Update

The median sales price DC Metro area is on the rise - October 2014 saw a 5.3% increase from last year. The number of closed sales fell slightly, but the reduction was from the distressed properties section of the market.

What that means for DC metro homeowners is a pretty balanced and stable market. Active listings are on the rise and have been increasing since the lows of the recession. This is good news as more homeowners find their property values sufficient to pay off their mortgages, and more houses for sale means more choices for buyers.

The median sales price of a home in Fairfax County was up 2.3% in October from last year.
October 2013   $440,000
October 2014   $450,000

If you've not been tracking the housing market since the recession (and who could blame you) we are back to a stable and more "normal" market. The foreclosures, short sales and bank owned properties are more or less gone (back down to pre-recession levels) and so the inventory we have is mostly healthy "normal" home owners selling and buying. The balancing has caused some investors to back out of the market for now, which is great news for more traditional home buyers who won't be as likely to compete with cash offers from investors.


Monthly Reminder: Real Estate is always a LOCAL market. Just because your home (or your dream home) is in the DC Metro area doesn't mean that this analysis will apply to that property in particular. If you'd like a detailed analysis of a particular neighborhood because you're thinking of buying or selling then give me a call or send me an email - I'm happy to help. 

nicole.duffey@gmail.com

703-303-2889

When should I talk to a Realtor?

You're thinking about the future.

There are thousands of reasons people buy and sell homes.

    Maybe your last child graduating from high school soon.
    Maybe you're getting married next spring.
    Maybe you're growing your family and know that you'll need more space.
    Maybe your dreams are coming true, or your heart is getting broken.

Trust me, as Realtors we have heard it all, and we are honored to be a part of your family's journey no matter where in your story you are.

When should you talk to someone about buying or selling? Even if you think you are years away from sitting at the closing table, if you have any questions about how to get there, there is no reason to not have them answered today. It doesn't hurt to ask.

You may find there are things you can start doing now to set yourself up for success.

Just drop me a line.

Nicole