Active Baby Boomers (47-54) Interested in Purchasing Second Home While Older Boomers (55-64) Want to Downsize, Aging in Place

By Elaine VonCannon, ABR, SRES, Associate Broker, Notary, Team Leader, Property Manager, Award Winning Agent

Baby Boomers are about to explode in numbers into the retiring population, changing the face of aging in the United States. Active Baby Boomers are generally 47-54 and still in the workforce. Older Baby Boomers (56-64) are either retiring early or preparing for retirement. According to an article on Realtor.com, "The Boomer Effect" by author John Van Gieson, statistics forecast 10,000 Baby Boomers a day will retire in the next 20 years. This sets the stage for the doubling of the aging population in the decades to come. Because of the implosion this will create on the American economy and Social Security and Medicare, this aging Boomer population has been dubbed the 'silver tsunami.'
At the same time this population ages, life expectancy is extended for this group largely because of medical technology. This combination of factors sets the stage for a very particular group with specific housing needs pre and post retirement.
Though some Boomers may have lost property and jobs during the recession, many held onto their homes and kept equity in their homes. The financially secure Baby Boomers are ready to make a move or an investment. As the real estate market continues to repair from the great recession, some of these Boomers are considering a move now. This may involve downsizing from a large family home to a property with no exterior maintenance. Meanwhile, many Active Boomers, looking onward towards retirement, desire second homes and investment properties.

What geographic areas in the U.S. will the silver tsunami prefer?

Some Boomers may purchase property in Florida. But Florida will no longer be the mecca for retired homeowners, as it was for many years. Current trends indicate this generation of Boomers will tend to purchase properties in the Mid-South region in places like Virginia, the Carolinas and Tennessee.

Virginia Homes for Sale Desirable for Boomers

According to the U.S. Census, population across the state of Virginia grew 3.2% between 2010 and 2013. In my own geographic region, Williamsburg and James City County, population increased 5.2% during the same time period. Williamsburg, James City and York Counties have always been popular retirement locations, and as statistics indicate - this trend will continue. The historic triangle is a popular place in Virginia to purchase a home because the region is family oriented, rich in history, and has ample dining and entertainment opportunities, with easy access to larger urban areas such as Hampton, Newport News, Norfolk and Richmond.

Virginia Recommended for Retirement by Marketwatch.com

In 2013, a writer from Marketwatch.com, a savvy online financial publication, recommended locations across the Commonwealth of Virginia as ideal for retirement. Locations included: Virginia Beach, Williamsburg, Roanoke, Winchester and Charlottesville. Virginia's low(er) property tax rates compared to Northeastern states, its central location in the Mid-South (making it convenient to Northern cities and states) and its mild climate with four seasons were cited as reasons for retiring here.

Current trends in purchasing real estate for the Baby Boomers: Aging in Place

The aging in place lifestyle is a desirable one for many, especially those who do not wish to end up in retirement communities, but would rather be in their own home while they age. For the Boomer who wants to age in place, selecting the right property will allow this person this choice, without moving. First floor dwellings with attached garages as well as no exterior maintenance of a property are some characteristics of a residence where one may easily age in place. Boomers are also looking for homes convenient to shopping, doctors, children and grandchildren.

How are Boomers' Housing Needs Defined?

Often a Boomer's housing needs close to or nearing retirement will shift. Many will require less space than the family home once provided, - perhaps considering a 1,000-2,000 square feet home rather than 3,000-4,000. Preference will be given to homes with easy entrance and exits on the first floor with none - or very few - steps.
For the Boomer wanting to purchase a second home intended as a retirement property for a full time residence at a later date, the same parameters may apply. A desirable location in a quiet area with low property taxes (maybe even out-of-state) will be the most likely impetus for a move for many Boomers.

As the Baby Boomers mature and become the 'silver tsunami,' expected lifespans are lengthening, too. So, if a Boomer retires at 60 or 65, he or she may enjoy another 15 to 20 years of independence, provided good health prevails. Choosing the right housing for retirement is an important decision that will potentially impact a Boomer for decades to come and should be thought out carefully. Rely on a professional REALTOR to help make the right choice in purchasing a home for retirement. Visit http://www.voncannnonrealestate.com for more information on homes for sale in Virginia.

First Time Homebuyers in Virginia Real Estate Market: Millennial Children Come of Age

By Elaine VonCannon, ABR, SRES, Associate Broker, Notary, Team Leader, Property Manager, Award Winning Agent

Millennial Children are the youth of America, now coming of age when it comes to owning their first home. Millennial buyers are between 18-34 and their financial lives are much different then their forbears. Challenges many have faced include: unemployment, high student loan debts and tight credit. So, for many Millennial Children, their ability to purchase and finance a home has been curbed in their twenties. But as they enter their thirties, Millennials are going to be an increasingly large group in the home buying market. In National Association of Realtors (NAR) "Field Guide to Millennial Home Buyers," updated in August 2014, the Joint Center for Housing Studies of Harvard University found, "the number of households in their 30s should increase by 2.7 million over the coming decade, which should boost the demand for new housing."

The entry of Millennial children into the home buying market is a good sign that home sales are improving. When first time homebuyers are a significant part of the real estate market (currently nearly 40%) it means the real estate market is stabilizing and even trending upward.

For many first time homebuyers, the ability to make a down payment of 5% or more plus closing costs is a significant barrier. Real estate industry researchers estimate fifty percent of Millennial Children will ask their parents or someone in their family for the money for a down payment for a home. The other 50% will aspire to be homeowners with their own resources. In order to qualify for mortgage financing, these Millennial Children must be employed and in good standing with their credit.

For REALTORS selling to the Millennial group, the steps to purchase a first home have not changed, though the needs of this particular age group are different then their predecessors – Generations X and Y. These older generations purchased their first homes during more prosperous economic times when jobs were plentiful. Many were able to hold onto their properties during the recession and are now looking at selling and moving to upgrade for more space or downsize for retirement. Millennials will be their buyers - and so will active Baby Boomers.

There are a few options REALTORS can recommend to first time homebuyers pressed for down payments and closing costs. If Millennnial Children have good credit and want help with the down payment and/or closing costs, some states may provide this sort of assistance, with special programs that backend costs onto the mortgage and/or charge zero interest on the amount needed, or even forgive the down payment debt after a certain number of years.

Home Ownership Assistance Programs for First Time Homebuyers in Virginia

For the first time homebuyer in Virginia, it is worthwhile looking into loan programs by the Virginia Housing Development Authority (VHDA). The goal of the VHDA is to help Virginians acquire quality, affordable housing. There are multiple 30 year-fixed rate mortgage programs to choose from: conventional fixed rate mortgages, an FHA insured loan with low down payments or FHA Plus - with a second mortgage to finance a down payment. Depending upon the area where the home is purchased, a homebuyer may be eligible for a Rural Housing Services (RHS) government insured zero down payment loans. There are also Veterans Administration loans for those who qualify. VHDA is a privately funded organization that makes all of these programs available through one agency and makes it easy to apply. Visit http://www.vhda.com for more information on home lending programs.

First Time Home Buyer Savings Plans (FHSPs)

In 2014, The legislature of the Commonwealth of Virginia, recognizing first time home purchases are an indicator the economy is healthy and growing, decided to implement a program to strengthen this market. The First-time Homebuyer Savings Plan (FHSP) was established to stimulate more first time home sales now and in the future. The FHSP can be set up by any resident of the Commonwealth as a state tax-free savings account that can accrue up to $50,000 towards the cost of down payments for home purchases in Virginia. These special savings accounts are only sheltered from state taxes, so long as funds are used to purchase a home in Virginia. The future homeowners, or their parents or relatives that want to save money on their behalf may establish FHSP accounts. If the funds are used for anything except purchasing a first home, then the funds are subject to the usual Commonwealth of Virginia taxes and fees.

The FHSP program in Virginia is another example of the way in which first time homebuyers are being encouraged to complete their first home purchase, and move the economy forward.

Besides securing financing for a home, first time homebuyers have other decisions to make before purchasing. The property should be a good investment that will be conducive to resale if the homeowner wants to step up to another property. A first home is most likely to be a good investment if it is located convenient to shopping, dining and entertainment. A detailed look at a home inspection will reveal any pressing problems with the property and title insurance must be able to be obtained. A good, qualified REALTOR can handle all of these inquiries and details. For more information on homes for sale in Virginia that are perfect for first time homebuyers, contact: voncannonrealestate@cox.net or visithttp://www.voncannonrealestate.com.

Types of Historic Homes for Sale in Southeastern Virginia

By Elaine VonCannon, ABR, SRES, Associate Broker, Notary, Team Leader, Property Manager, Award Winning Agent

Virginia has a rich history dating to the Colonial era and also a wide variety of historic homes and properties for sale. It was one of the first places colonized by the British and is also known for Civil War era structures as well as Late 19th and Early 20th Century homes. When it comes to purchasing historical properties, the home buyer has various choices in Virginia. There are rural and urban historic homes for sale across the Commonwealth of Virginia today, from many different eras and in various conditions.

It takes a special type of home owner to purchase and renovate or restore a historic home. Oftentimes, historic home purchasers are so enthusiastic about history they want to preserve part of our American heritage by living in or restoring a historic property. While many are passionate about history, they also seek special amenities such as equestrian facilities or waterfront docks and want to live in unique properties with maximum privacy in a secure, quiet setting.

The Classic Virginia Estate

A classic example of an estate property found in Virginia would date from the late19th Century and be made from brick - in the Colonial style. This style of custom built estate home may still retain many of its original features such as cathedral ceilings and multiple fireplaces. Original details like walnut bannisters and yellow pine floors, brass locks and fittings, chair rails and built in bookcases may still be in place. Many of these scenic, expansive Virginia estate properties are surrounded by fresh water ponds or streams and even offer waterfront access with docks on property. Historic properties may offer hardwood forests, meadows, equestrian facilities and water features as well as multiple outbuildings. Even with these amenities, privacy and 19th Century charm, many historic properties with at least five acres can be purchased for around one million to five million dollars. Compared to single family home pricing in many urban markets such as San Francisco, New York City and Boston, Virginia estates are an affordable acquisition. Those who have the means for this lifestyle - and are prepared to maintain a property of this size - find the extra luxuries extremely satisfying and worth the price.

Renovation/Restoration Budget

Investors in historic homes in Virginia may want to include a renovation (or restoration) budget in their purchase plans. Finding the right historic property is the first step. Renovating or restoring the property can make all the difference in quality of life there. Customizing a historic property for an individual or family lifestyle will be important to making it feel more like a home.

Historic Homes in Richmond and Henrico County Virginia

In downtown Richmond and areas such as Shockoe Slip and the Fan, there are many 1920s ad 1930s Art deco homes to choose from. Since restoration of the historic district began in the 1970s, Shockoe Slip has now become a premiere shopping and dining destination in Virginia. The Fan is in close proximity to Virginia Commonwealth University (VCU) making it a popular section of Richmond. Many historic estate properties and farmhouses are located just outside of Richmond in Henrico County.

Rural and Urban Historic Homes in Virginia

The Southeastern portion of Virginia, also known as the Tidewater region or Hampton Roads, was the site of original English colonization. Many historic properties have waterfront access and docks because boats were a main form of transportation in Early America.

In rural areas, such as Surry and Charles City, Virginia, buyers will find historic farmhouses and even plantations along the James River and its tributaries. While a search for a historic home in Williamsburg, James and York City Counties will yield many 18th and 19th Century urban properties. Many of Williamsburg's historic properties are owned by Colonial Williamsburg Foundation or the College of William and Mary. But the Foundation and College do not exclusively own all Williamsburg historic properties. The buyer will find numerous historic treasures in Williamsburg and in surrounding counties because Williamsburg was the 18th Century capital of Virginia and attracted many prominent residents, artisans, students and families as well as those charged with governance.

Historic Homes in the Northern Neck of the Chesapeake Bay

In Gloucester and Gloucester Point Virginia and areas north of here, such as Mathews and Gwyn's Island, the seafaring way of life has been a longstanding tradition. These areas are known for historic sea cottages and estate properties built on the York River, Chesapeake Bay and its tributaries. Many of these historic properties are waterfront, with docks. Today these tranquil areas are known as the Northern Neck of the Chesapeake Bay. The Northern Neck is not highly populated and it is the perfect environment for the waterman, those who love boating - or people who simply enjoy being on or near the water.

Smithfield & Isle of Wight County: Hidden Historic Homes

Across the River from Williamsburg, Virginia, many historic homes can be found in Smithfield and surrounding Isle of Wight County. I once sold an 18th Century cottage in downtown Smithfield to an editor of the Daily Press. This was the oldest home in Smithfield. Like many who purchase historic homes, this particular buyer had a passion for history, and she fell in love with the home, its history, and its location. Outside of Smithfield in Isle of Wight County, there are many historic estates, farmhouses and even plantations.

Whether it's a love of history, or wanting to live a luxurious lifestyle on an estate in Virginia, historic home buyers find a wide variety of choices across the Commonwealth of Virginia. The Southeastern part of Virginia has a plentiful amount of historic properties, largely due to its proximity to the coast and coastal rivers as well as being deeply rooted in Colonial history. Learn more about historic homes in Virginia for sale, call Elaine VonCannon at 757-288-4685 or email voncannonrealestate@cox.net. Visit http://www.estatesinvirginia.com for more information about Virginia estates currently for sale.