First Time Homebuyers – 2020 is YOUR year to purchase your HOME!

First Time Homebuyers – 2020 is YOUR year to purchase your HOME!

Let’s just say that the stars are aligning for first time homebuyers. Market forces are good as we are entering a more balanced market that we have not seen in years.  In addition, there is an abundance of programs to help the first time homebuyer get into that first home in 2020.

Let me explain why:

Low Downpayment Programs

There are VERY generous programs out there to help with qualifying the first time homebuyer for a purchase with a low downpayment.

    1. FHA loan program: A loan insured by the Federal Housing Administration. Good for those with low credit scores and little money saved for a down payment.  https://www.hud.gov/buying/loans
    2. USDA loan program: A loan program 100 percent guaranteed by the U.S. Department of Agriculture for lower-income borrowers in eligible rural areas.  https://www.rd.usda.gov/programs-services/single-family-housing-guaranteed-loan-program
    3. VA loan program: A loan backed by the U.S. Department of Veteran Affairs that allows no down payment for military personnel, veterans and their families.  https://benefits.va.gov/homeloans/
    4. Good Neighbor Next Door buyer aid program: A HUD program that provides housing aid for law enforcement officers, firefighters, emergency medical technicians and teachers.  https://www.hud.gov/program_offices/housing/sfh/reo/goodn/particip
    5. Fannie Mae or Freddie Mac loan program: Conventional loans backed by Fannie Mae or Freddie Mac require 3 percent down. Good for those with strong credit.
    6. HomePath ReadyBuyer Program: A program that provides 3 percent in closing cost assistance to first-time buyers. Must complete an educational course and buy a foreclosed Fannie Mae property.
    7. Energy-efficient mortgage program: Backed by FHA or VA loan programs and allows borrowers to combine the cost of energy-efficient upgrades onto a primary loan upfront.
    8. FHA Section 203(k) loan program: Borrow the funds needed to pay for home improvement projects and roll the costs into one FHA loan with your primary mortgage.

Downpayment Assistance Programs

On top of the low downpayment programs, there are actually programs that will grant the first time homebuyer part of the downpayment!

    1. Montana Neighborhood Lift – Down payment assistance up to $12,500 for service members. https://www.montanalift.org/
    2. Montana Board of Housing deferred or Bond Advantage Program can provide up to $10,000 https://housing.mt.gov/Homeownership/Lenders/Down-Payment-Assistance
    3. HRDC Road to Home offers up to $30,000 .  https://thehrdc.org/how-we-help/housing/down-payment-assistance/
    4. Dream Makers Grants for Veterans – Offers up to $5000 . https://www.penfed.org/learn/mortgage-programs-for-veterans
    5. There are also local and state programs that can help get you into a new home!

Other Positive Factors for First Time Homebuyers

  1. Prices in the SW Montana area are leveling off and slowing their rate of increase. See my blogs for up to date information on real estate trends!  https://movemetomontana.com/montana-blog-real-estate-trends
  2. Inventory is good and days it takes to sell a home has risen.  We are approaching a balanced market where everything is not weighted towards the seller.
  3. Mortgage rates themselves are quite reasonable and are actually down from a year ago.

Free Seminar for First Time Homebuyers

This is a lot of information to digest.  To help, a mortgage broker, Kari Francisco (NMLS #1123666) from First Security Bank and I will be presenting a Seminar with just about everything you need to know to  purchase your home in 2020.  The seminar will take place on February 8 from 10 am – 12 Noon at the Windermere office in Downtown Bozeman – 135 East Main street.  PLEASE RSVP to liz@windermere .com or on my contact form at https://movemetomontana.com/as space is limited.

Pictured home is in Belgrade – check it out on this link. https://www.windermere.com/listing/MT/Belgrade/1308-Fozzie-Lane-C-58714/100542204

Posted on January 15, 2020 at 12:10 am
Liz Nitz | Category: First time home buyer real estate, Real Estate in Montana | Tagged , , , , , , , ,

Belgrade 2019 Real Estate Trends

Belgrade 2019 Real Estate Trends

Belgrade December numbers are in!  Let’s take a look at the Belgrade real estate pricing trends of 2019, compare it to trends of previous years of 2017 and 2018 and  check the crystal ball for 2020.  The following numbers represent all sales in each category for each year and numbers are coming from the Big Sky MLS.

Median Sales Prices

First up are median sales prices.  I have divided these sales into Single family, Townhomes and Condos.  We see a not unexpected increase in median sold prices in all three of these categories BUT we also see a slowing rate of increase which is great news for buyers. This statistic bolsters the thought that the real estate market is becoming more balanced.

 

Median Price Per Square Foot

Second number I checked to confirm the median sales price slow down, was the median price per square foot. And I reached the same conclusion, that prices are indeed slowing their rate of increase.

 

Days On Market

To help round out the picture of the market conditions, I then took a look at days on market.  If days on market is a large number and homes are languishing on the market, then we would have certainly turned the corner to a buyer’s market.  But alas, this is not what I found and in fact, homes in all categories are still moving along at a good pace with a decrease in DOM actually found in the townhome category.

 

Looking Ahead to 2020

So what does this mean for Belgrade real estate pricing in 2020?  All indications currently point to a very similar year in 2020 as in 2019.  Mortgage rates are now very low (under 3.7% for conventional 30 year fixed!) which will make it attractive for people to consider a home purchase.  As seen below, Belgrade remains an attractive alternative to Bozeman and builders are building new homes, especially single family, as fast as they can.

Even with that though, there is still less than 3 months of inventory on the market.

I have attached a great listing that is representative of single family homes in Belgrade.  Thanks to Dina Emmert.  https://www.windermere.com/listing/MT/Belgrade/1547-Powers-59714/103416383

These numbers reflect sold pricing.  Remember that Montana is a non-disclosure state so only licensed realtors can access accurate data.  If you would like to dive deeper into market trends, please reach out and let’s have a conversation! Keep an eye on the blog at https://movemetomontana.com/  for more ongoing analysis. I hope you found this helpful – please pass it on!!

 

Posted on January 10, 2020 at 6:56 pm
Liz Nitz | Category: Real Estate in Montana | Tagged , , ,

Bozeman 2019 Real Estate Pricing Trends

Bozeman 2019 Real Estate Pricing Trends

Bozeman December numbers are in!  Let’s take a look at the Bozeman real estate pricing trends of 2019, compare it to trends of previous years of 2017 and 2018 and  check the crystal ball for 2020.  The following numbers represent all sales in each category for each year and numbers are coming from the Big Sky MLS.

Median Sales Prices

First up are median sales prices – I have divided these sales into Single family, Townhomes and Condos.  We see a not unexpected increase in median sold prices in all three of these categories BUT we also see a slowing rate of increase which is great news for buyers and bolsters the thought that the real estate market is becoming more balanced.

Median Price Per Square Foot

Second number I checked to confirm the median sales price slow down, was the median price per square foot. And I reached the same conclusion, that prices are indeed slowing their rate of increase.

Days On Market

To help round out the picture of the market conditions, I then took a look at days on market.  If days on market is a large number and homes are languishing on the market, then we would have certainly turned the corner to a buyer’s market.  But alas, this is not what I found and in fact, homes in all categories are still moving along at a good pace with a decrease in DOM actually found in the single family home category.

Looking Ahead to 2020

So what does this mean for Bozeman real estate pricing in 2020?  All indications currently point to a very similar year in 2020 as in 2019.  Mortgage rates are now very low (under 3.7% for conventional 30 year fixed!) which will make it attractive for people to consider a home purchase.  Movement to the Bozeman area is expected to continue at similar rates (about 1500 people a year) as in previous years.

 

These numbers reflect sold pricing.  Remember that Montana is a non-disclosure state so only licensed realtors can access accurate data.  If you would like to dive deeper into market trends, please reach out and let’s have a conversation! Keep an eye on the blog at https://movemetomontana.com/  for more ongoing analysis. I hope you found this helpful – please pass it on!!

 

 

 

Posted on January 7, 2020 at 11:00 pm
Liz Nitz | Category: Real Estate in Montana | Tagged , , , , ,