Home Owner Tip: Save money by paying your mortgage off early

Buying a home is often the biggest financial choice most Americans will make in their lifetime. In addition to providing a stable secure place to live for years to come, your home is also a wealth building tool, as the equity in your home grows over the years. While your monthly mortgage payment is something you may "set and forget", taking steps to pay down your home loan faster can save you a lot of money in the long term. What it boils down to: make a habit of sending your lender more than the minimum amount. Finance Guru Dave Ramsey recommends a few simple ways to think about how you can pay down your mortgage more quickly in this blog post.

Northern Virginia Real Estate Market Update

The Northern VA market continues to improve as the median home price in Fairfax County was $461,00 for March 2015, up 2.8% from March 2014. The DC regional housing market is strong. The median sales price in March in the DC Metro Area was up to $400,000 - the highest March level we've seen since 2007. Interest rates remain stable and under 4% - helping buyers enter the market, and saving money for home owners who are ready to refinance. Personally, I’ve been seeing multiple offers in the past couple of weeks on properties that are priced right for their condition! Things are moving quickly this spring, as buyers and sellers have both turned out in force. Everyone’s been busy.

Home Owner Tip TLC for your HVAC

Now that the weather is getting nicer it's a good time to inspect the outdoor part of your unit and clear away any debris that may have rested there in our recent storms. Remember: Experts recommend that you have your HVAC system professionally inspected every fall and spring. 

You should also be replacing your air filter every 90 days. So if you've not replaced yet this year, you should add that to your to-do list for the first week of April. Not sure what size filter you need? Check your home inspection report, or do what I do: sneak a peak at the one currently in the unit and snap a quick photo of the size with your phone so you have it handy when you get to the hardware store.  
 

Northern Virginia Housing Market Update

The Northern VA market remains strong as the median home price in Fairfax County was $447,450 for February 2015, up 6.9% from February 2014.  

Townhouses on the rise: The percentage of sales in our region that that are townhomes is increasing, as are townhome prices. This may be a sign of a foretasted wave of first time home-buyers expected to enter the market this year.

Interest rates remain under 4% - helping buyers enter the market, and saving money for home owners who are ready to refinance. 

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