We had a very exciting Friday for our Peak Team!! We received the award for #1 in Sales AND Volume at our brokerage, JP & Associates!!!
Thank you to our entire team for all your hard work and support. The first half of the year has had it’s challenges and you each kept your heads up and didn’t let it slow you down. For all of the homeowners and sellers that have trusted us with your business, THANK YOU!! We wouldn’t be the team we are without each of you!!
Here is to the next half of 2020!!
In June, the number of first-time homebuyers accounted for 35% of the existing homes sold, a trend that’s been building steadily throughout the year. According to the National Association of Realtors (NAR):
“The share of first-time buyers increased in March through June—right into the heart of the pandemic period and the surge in unemployment—and is now trending higher than the 29% to 32% average in past years since 2012.” (See graph below):
NAR continues to say:
“The major factor is, arguably, low mortgage rates. As of the week ended July 16, the 30-year fixed mortgage rate dropped to 2.98%. With rates so low that are locked in under a 30-year mortgage, the typical mortgage payment, estimated at $1,036, has fallen below the median rent, at $1,045. For potential home buyers who were thinking of purchasing a home anyway before the pandemic outbreak and who are likely to remain employed, the low mortgage rate may be the clincher.”
Clearly, historically low mortgage rates are encouraging many to buy. With the average mortgage payment now estimated at a lower monthly cost than renting, it’s a great time for first-time homebuyers to enter the market. According to the Q2 2020 Housing Trends Report from the National Association of Homebuilders (NAHB):
“Eighty-four percent of Gen Z’s planning to buy a home are first timers, compared to 68% of Millennials, 52% of Gen X’s, and 21% of Boomers. Looking at results by region shows that over 60% of prospective buyers in the Northeast and South are buying a home for the first time. The share is above 55% in the Midwest and West.”
There are, however, challenges for first-time buyers. A recent survey conducted by NeighborWorks America also notes that understanding the homebuying process may be the most significant barrier for many hopeful homeowners:
“Homeownership is a particular challenge for many, despite high levels of interest. Americans believe there are many benefits to homeownership and half of non-owners will seek information about the process in the next few years…a large share of non-owners say the process is too challenging and only a minority know where to find advice if they wanted it. And although many would seek the guidance of community and non-profit programs, only one in three non-owners are aware of such services.”
If you’re among the first-time homebuyers who feel the process is complicated, you’re not alone. If you’re not sure where to begin or you simply want help in figuring out how to save for a home, finding a trusted real estate advisor to work with is a critical step toward your success. A real estate professional can help you understand the process, review your current situation, and guide you with a plan to help you to feel confident when buying a home.
If you’re interested in purchasing a home and need help getting started, let’s connect today so you can take advantage of the support available to guide you through each step of the way.
Making the transition from renter to homeowner is certainly exciting, but it can be frightening as well. When you rent your dwelling and something goes wrong, all you need to do is pick up the phone and call the landlord. When you own your own home, you no longer have that luxury. When the toilet backs up at 2 in the morning or the roof starts leaking after a heavy rain, you have to take care of the problem on your own.
If you are new to home ownership, it is important to be prepared for anything and ready to take care of anything that might happen to your new dwelling. You hope that nothing goes wrong, but simply hoping for the best will not fix that leaky roof or fix the broken pipe in your basement.
No matter where you live or what kind of home you own, it is important to compile a list of local service and repair people. Having that list handy and using it when necessary is the best way to stop those little household emergencies from becoming major disasters.
Perhaps the most important number in your homeownership emergency book is the contact information of a local plumber. Look for a plumber that provides 24-hour emergency service, and always check ratings and references before adding the plumber to your list. A personal recommendation is always a good idea when selecting a plumber, so check with your neighbors to see who they have used in the past.
It is also important to have the number of a good electrician in your emergency kit. An electrical problem can put the safety of your family at risk, and knowing whom to turn to in times of trouble will give you real peace of mind. Again, it is important to look for a company that provides emergency service any time of the night or day.
You will also want to have the phone number of a good roofing contractor, especially if your home is an older one. You never know when a roof leak will start, and stopping it fast is the best way to stop the damage from spreading and putting your home at risk. Again, it is a good idea to ask your new neighbors for recommendations, and you should of course check references carefully.
Being a homeowner is a great way to live your own American dream, but it is important to recognize the responsibility of home ownership as well as its many benefits. Compiling a list of local contractors is your best defense against unforeseen problems, and the sooner you create that list the sooner you can start sleeping soundly in your brand new home.
