West Virginia: a Magnet for First Time Home Buyers

There’s 50 states in this great nation, and West Virginia is No. 1 for first-time home buyers.

During the past 10 years, first-time home buyers flooded the Mountain State. From 2003 to 2013, the amount of new first-time home buyers in West Virginia increased by more than 57 percent while foreclosures in 2015 remained low, holding at 0.01 percent.

Days ago, GoBankingRates conducted a nationwide survey and found the Mountain State to be most desirable. A number of factors make up the findings that place West Virginia above the rest.

Let’s take a look:

Low costs

The low costs of buying a home in West Virginia make it accessible and affordable for folks on a budget. The median sale price of a home in the Mountain State is $115,850, according to reports from Zillow. This translates to a $550 monthly payment for a 30-year mortgage. That’s almost 40 percent less than the monthly payment one can expect to endure for rent.

Helpful Resources

Strong and easily accessible public programs are available for first time home buyers in West Virginia. The West Virginia Housing Development Fund offers a special Homeownership Program that provides 100 percent financing for first-time home buyers who meet income requirements. The state also offers Down-Payment/Closing Cost Assistances programs.

Solid Market

West Virginia holds a resilient housing market, containing a plethora of homes for all styles, needs and budgets. A long winter has brought forth a healthy spring and summer for both home buyers and home sellers. Demand from home buyers continues to rise as interest rates continue to sink. Home values constantly rise, adding an extra incentive for those wishing to invest and build equity.

Spring has proven to be a success for not only West Virginia, but the national housing market. In May, 32 percent of home purchases were made by first-time home buyers, according to stats from the National Association of Realtors (NAR).

“This is an encouraging sign, stemming from strong job gains among young adults, less expensive mortgage insurance and lenders offering low down payment programs,” said Lawrence Yun, chief economist for NAR.

Yun believes, if current trends continue, the amount of first-time home buyers entering the market will rise even further.

By Justin Waybright and Chuck Boggs

First Time Home Buyers

The Market is Calling Your Name

So, you’ve just gotten married or planning to get married, start a family and begin your future, but there’s one thing missing…A home of your own.

Good news.  This Spring and Summer just happens to be great times to begin your hunt for that “perfect home.”

For years, the sketchy, up-and-down, predictable-yet-unpredictable housing market seems to have found its sweet spot.  First Time Home Buyers, are you ready for this?

Return on Your Investment

Home prices nationwide are expected to rise by 4.9% this year, according to stats from the National Association of Realtors (NAR).  Higher home prices are great for sellers, but not buyers.  You want to act now before prices rise.  Once you’ve purchased your home, if prices rise, hey, you’re good.  That just means your investment is yielding a return.

Zillow is forecasting an increase in houses and condos for sale this year as builders pick up the pace and more homeowners cash in on their rising equity

Field’s Ripe for the Harvest

It was a long winter, and now sellers are flooding the market to list their homes.  Who can blame them?  The sun is out, the grass is green and the flowers are sprouting.  It’s beautiful out there.  More than just the weather, we’re seeing a more confident outlook.

The number of flipped homes has dropped for the second year in a row, while the foreclosure rate is less than half of what it was two years ago. These are healthy signs for all of us.  With the numbers supporting them, expect to see more homes to choose from this spring and summer.

The American Dream to Become Reality

The percentage of first time home buyers on the market hit its lowest level in decades last year, at just 33% of sales vs. 40% historically.  However, according to a recent survey by BMO Harris Bank, 74% of Americans, ages 18 to 34, plan to buy a new home during the next five years.

No More Wars

Bidding wars should dwindle due to plenty of choices in your local markets.  If another potential buyer does make an offer on a house you’re interested in, simply move on to another house.  It’s always great to have a few options, anyway.

Time’s Running Out

It doesn’t take a rocket scientist to realize we’re it’s a great time to buy and sell.  Interest rates are under 4% for the popular 30-year fixed-term mortgage, compared to 4.34% last year at this time.

However, no good deed goes unpunished.  Representatives from the National Association of Realtors predict the rate for this typical home loan will rise to 4.7% by autumn and 5.3% by 2016.

Bottom-line: If you’ve been sitting on the sidelines, now may be the time to lace up the Nikes and get out on the field.  It’ll all be worth it when you turn the key in the door knob of the house of your dreams that you saved money on and are finally able to call “My Home.”

By Chuck Boggs, Jr.

Owner, Boggs & Associates