Northern Virginia Real Estate Podcast with Janet Gresh and the Gresh Group

According to the latest report from the US Census Bureau, more Americans chose purchasing a home over signing a lease to rent in the first quarter of 2017. This marks the first time since 2006 that the number of new homeowner households outpaced the number of new renter households.Of the 1.22 million new households that were formed in the first quarter, 854,000 were new-owner households making the jump straight to homeownership rather than renting first. Read more here. 

A recent report released by Down Payment Resource shows that 65% of first-time homebuyers purchased their homes with a down payment of 6% or less in the month of January.The trend continued through all buyers with a mortgage, as 62% made a down payment of less than 20%, which is consistent with findings from December. Read more here.

The National Association of Realtors recently released a study titled 'Social Benefits of Homeownership and Stable Housing.’ The study confirmed a long-standing belief of most Americans:“Owning a home embodies the promise of individual autonomy and is the aspiration of most American households. Homeownership allows households to accumulate wealth and social status, and is the basis for a number of positive social, economic, family and civic outcomes.”Today, we want to cover the section of the report that quoted several studies concentrating on the impact homeownership has on educational achievement. Here are some of the major findings on this issue revealed in the report:The decision to stay in school by teenage students is higher for those raised by home-owning parents compared to those in renter households.Parental homeownership in low-income neighborhoods has a positive impact on high school graduation.Though homeownership raises educational outcomes for children, neighborhood stability may have further enhanced the positive outcome.Children of homeowners tend to have higher levels of achievement in math and reading and fewer behavioral problems.Educational opportunities are more prevalent in neighborhoods with high rates of homeownership and community involvement.The average child of homeowners is significantly more likely to achieve a higher level of education and, thereby, a higher level of earnings.Bottom LinePeople often talk about the financial benefits of homeownership. As we can see, there are also social benefits of owning your own home.*The next two Thursdays, we will report the study’s findings on the impact homeownership has on civic participation and a family’s health.

The housing crisis is finally in the rear-view mirror as the real estate market moves down the road to a complete recovery. Home values are up. Home sales are up. Distressed sales (foreclosures and short sales) have fallen dramatically. It seems that 2017 will be the year that the housing market races forward again.However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. While buyer demand looks like it will remain strong throughout the winter, supply is not keeping up.Here are the thoughts of a few industry experts on the subject:National Association of Realtors“Total housing inventory at the end of December dropped 10.8%...which is the lowest level since NAR began tracking the supply of all housing types in 1999. Inventory has fallen year-over-year for 19 straight months and is at a 3.6-month supply at the current sales pace.”Jonathan Smoke, Chief Economist for Realtor.com“More than two-thirds of the markets are seeing less inventory now compared to a year ago.”Lawrence Yun, Chief Economist at NAR:“The dismal number of listings in the affordable price range is squeezing prospective first-time buyers the most. As a result, young households are missing out on the wealth gains most homeowners have accrued from the 41% cumulative rise in existing home prices since 2011.”Sam Khater, Deputy Chief Economist at CoreLogic“The lack of affordable supply is really driving up home prices.”Peter Muoio, Chief Economist at Auction.com“Tight housing inventory remains a constraining factor limiting stronger sales growth…We expect further price growth to entice more homeowners to list their homes, particularly as existing homeowners have greater equity.”Bottom Line If you are thinking of selling, now may be the time. Demand for your house will be strong at a time when there is very little competition. That could lead to a quick sale for a really good price.

Fannie Mae’s article, “What Consumers (Don’t) Know About Mortgage Qualification Criteria,” revealed that “only 5 to 16 percent of respondents know the correct ranges for key mortgage qualification criteria.”Myth #1: “I Need a 20% Down Payment”Fannie Mae’s survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 76% of Americans either don’t know (40%) or are misinformed (36%) about the minimum down payment required.Many believe that they need at least 20% down to buy their dream home, but many programs actually let buyers put down as little as 3%.Below are the results of a Digital Risk survey of Millennials who recently purchased a home.As you can see, 64.2% were able to purchase their home by putting down less than 20%, with 43.8% putting down less than 10%!Myth #2: “I need a 780 FICO Score or Higher to Buy”The survey revealed that 59% of Americans either don’t know (54%) or are misinformed (5%) about what FICO score is necessary to qualify.Many Americans believe a ‘good’ credit score is 780 or higher.To help debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans. As you can see below, 54.7% of approved mortgages had a credit score of 600-749.Bottom LineWhether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Your dream home may already be within your reach.

Selling your home? Get a free home value reportBuying a home? Search all homes for sale  As part of our commitment to customer service, we wanted to share with you a website we found that we think could be a great resource for any consumer. The website is www.reviews.com What they do on this site is review various products and industries, and they state that it’s unbiased research. We like that! We found reviews.com when looking at homeowner’s insurance. They did a review of 99 homeowners insurance companies and used the industry’s own rating standards to rank these companies. We think it’s a value to you as anyone buying or renting a home who is looking for homeowner’s insurance, HO6 insurance, or renter’s insurance. To learn more about homeowner's insurance specifically, check out this article. For all of your real estate needs from buying to selling please feel free to reach out with any questions.

Selling your home? Get a free home value reportBuying a home? Search all homes for sale  Today, we’ll address why it’s better to own rather than rent in Northern Virginia. The reality is, you have to live somewhere. You’re either submitting a monthly payment to a landlord or paying off a mortgage every month. It’s far better to pay off your own mortgage than someone else’s! A mortgage allows a tax deduction, and that savings is huge for you! Whenever I help a first-time home buyer, they’re always shocked and delighted to see the tax savings by deducting mortgage interest. It’s incredibly rewarding. Additionally, owning a home is a kind of forced savings. Since you have to either pay a mortgage or rent, a mortgage invests in interest and your principal. If you’re thinking about buying or selling a home in the surrounding area, reach out by phone or email! I'm delighted to serve your real estate needs and answer any questions you might have.

Selling your home? Get a free home value reportBuying a home? Search all homes for sale  Surprisingly, interest rates are still historically low. Many economic experts predicted interest rates would increase steadily through 2016. However, due to the combination of volatile economic reports and our falling stock market, we’ve actually seen interest rates decline. No one really knows what will happen next. What we do know is that rates are the lowest they have been since April of 2015. Many of the experts in the industry still expect interest rates will rise throughout 2016, but nobody knows for sure. Not the National Association of Realtors, nor Fannie Mae, nor Freddie Mac. What you need to know is that rates are incredibly low. Read more about it in this article here. If you’ve been thinking about buying or selling, now is the time to take action. If you have any questions, give me a call or send me an email. I would be happy to help you!

Looking to buy or sell a home in Northern Virginia? Click here to perform a full home search, or if you're thinking of selling your home,click here for a FREE Home Price  Evaluation so you know what buyers will pay for your home in today's market. You may also call us at (703) 636-3588 for a FREE home buying or selling consultation to answer any of your real estate questions. When you sell your home, you are likely going to hire an agent to help you sell your home because of their expertise. On the other hand, buyers need representation too, right?  Today we are going to talk about why you need a buyer specialist when you buy a home, especially here in Northern Virginia.  There are hundreds of reasons to use a buyer specialist. The main one being that you want somebody on your side of the transaction. You want somebody who can negotiate for you and look out for your best interest, just as the seller's agent is doing for them.  We at the Gresh Group know the Northern Virginia market and the inventory. We have over 300 fellow Keller Williams agents who work with us and are the first to let us know of great listings in the area. We also know how to make a winning offer and get you into the home you want. We have done countless hours of research on the market, and understand what price will get you the home you want.  Coming soon, we are going to be holding a FREE buyer specialist seminar right here at our office. This seminar will help you head in the right direction in terms of financially preparing to buy your home. This is a free event, open to everyone, and we would love to see you there.  Seminar Date: Tuesday, February 10th at 7pm RSVP: [email protected] you have any questions for us, don't hesitate to reach out to us via phone or email. We look forward to speaking with you!

Looking to buy or sell a home in Northern Virginia? Click here to perform a full home search, or if you're thinking of selling your home,click here for a FREE Home Price  Evaluation so you know what buyers will pay for your home in today's market. You may also call us at (703) 636-3588 for a FREE home buying or selling consultation to answer any of your real estate questions. Are you looking to list your home in the spring? If so, we need to talk now! I have said it before and will say it again, this time of year can actually be a GREAT time to sell if it works with your timeline. However, for those of you who absolutely need to wait until this next spring, NOW is the time to start talking with our team! Why?  - Upgrades/Projects:  Our team can guide you through possible upgrades, renovations, or repairs that you may need to make now. Making the right changes now can ensure you get the biggest bang for your buck. Also, many contractors are thirsty for work this time of year and they are more willing to negotiate on bids. Did I mention they are typically easier to book out on your calendar? Win-Win! - Understanding your financial position:  We will go through the numbers with you to see if it makes sense to sell now vs. the spring OR even at all. No matter your financial situation it is better for you to not lose ground when you’re thinking about listing your home. Let’s have those conversations now.  - Buyers start looking Jan. 1st:  Sellers beware! Contrary to popular belief, the weather outside does not deter serious buyers from looking. Buyers DO start calling our office to set up searches and get prepared for the spring market, if you have not started having conversations with us you’re behind the ball. One big reason – If you get into the market earlier we advertise your listing as a “pocket” or “coming soon” listing notifying other agents that hey, you’re looking for a buyer in the next 3 months. 98% of buyers begin their home search online … and guess what days in winter they are more likely to be searching online? You guessed it, snow-days! It is important for you to be informed and prepared no matter what the market or weather. Here at the Gresh Group, we value information and service which is why we provide a wealth of information to our clients. I would be happy to discuss your unique needs for selling and provide you with the most detailed information possible to gauge what’s best NOW for your future. Call me now at 703-636-3587.