Rental costs are rising fast. Housing costs have dropped. And according to CNN Money, “2015 is the year when first-time home buyers make a comeback.” In the past five years high down payment demands and strict lending standards have made it difficult for first time home buyers to find a home. But this year all of that changes.
Millennials who are looking at purchasing their first home will be met with lower down payment mortgages, looser lending standards, and a wide selection of inventory to choose from.
Looser Lending Standards
The improved job market has things looking brighter for young home buyers already. But add this to the new lending guidelines and securing a home mortgage is practically in the bag. Fannie Mae and Freddie Mac have also started offering 3% down payment mortgages which will help new home buyers qualify for a home mortgage.
New home sales are expected to climb to 13% this year, while resale home sales are expected to increase 5%. Such a dramatic increase is expected to spark a chain reaction that will cause those who already own their home to sell and move up to a more expensive home.
There will be More Inventory
The production of smaller homes has increased among home builders as they get ready to meet the demand of first-time home buyers. Entry level home buyers will be able to buy quality homes from $120,000 to $150,000. See a few of our options below.
Homes will Become More Affordable
The influx of new homes on the market is expected to create a drop in home prices, which should improve affordability in metro communities.
Mortgage Rates will Rise Eventually
The direction of mortgage rates is often a difficult thing to predict, but in 2015 most economists expect rates to rise by a small percentage. The Federal Reserve announced in December that it would not raise the Federal Funds Rate until summer of 2015, or perhaps even later. Even so, mortgage rates are expected to peak around 4.75%, 5% at the highest, which is still a low rate historically speaking.
If you are looking for a great starter home, Prudential Beazley Real Estate has available real estate in several affordable neighborhoods.
Homes for Sale in Aiken, SC
Cornerstone is nestled near the historic downtown area of Aiken, South Carolina. The neighborhood features single story, two story, as well as townhomes in addition to highly rated schools, parks, and convenient shopping.
Gregg’s Mill recently opened their resort style swimming pool and a brand new entrance is on the way. 100% financing is available on these homes, which feature stunning amenities and large lots.
Homes for Sale in Augusta, GA
Hayne’s Station is Augusta’s newest, most sought-after community.The location is ideal, the homes are unique and elegant, the lots are beautiful, the amenities incredible!
Our neighborhood of Creek Bend is located in Grovetown, GA and features beautiful walking trails. A wide variety of floor plans with large lots are available, and Section III is now open.
Related: 10 Reasons You’ll Love Creek Bend
Southampton homes are extremely valuable, starting in the 130’s. These beautiful new homes offer close proximity to Fort Gordon, the Augusta Regional Airport, the outstanding Diamond Lakes Recreation and Community Center, and major traffic arteries.
Willow Oak Village
Willow Oak Village is a tranquil, friendly neighborhood with spacious homes and a variety of floorplans to choose from. Residents here can even enjoy the luxury of a resort style pool right in their very own neighborhood.