Builder Confidence High for the Month of October

A jointly sponsored survey from the National Association of Home Builders (NAHB) and Wells Fargo to a selection of builders in the United States rates builder confidence in three different areas: current sales conditions, prospective buyers, and expectations for future sales. The results of this survey are published each month in the NAHB/Wells Fargo Housing Market Index (HMI). Any rating by builders that is higher than 50 is considered a positive sign. During October, 2017, the builder confidence index rose to a total of 68 for all three categories, which is the highest

level it has been since May of this year.  March – June are considered some of the best months for real estate, so to have this high of a score during October from builders is a very positive sign for the real estate industry as a whole.

“This month’s report shows that home builders are rebounding from the initial shock of the hurricanes,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas. “However, builders need to be mindful of long-term repercussions from the storms, such as intensified material price increases and labor shortages.”

It is also interesting to note that builder confidence is so high when the hurricanes have eaten up a lot of the construction labor available to builders with flood restoration and home repair.  Some construction companies have one year and year and a half waiting lists for hurricane-related home repairs. In fact, the typical number of new home permits issued in Houston in a year has been surpassed by the number of permits requested for home repairs.

The price of lumber is also up 21% and is expected to continue to rise. However, builders are also seeing a surge in demand for new homes after the hurricanes, so this has probably helped with builder confidence levels during this month.

The exact numbers of the three survey factors are as follows: current sales conditions rose five points to 75. Sales expectations over the next six months also rose five points to 78. The component measuring buyer traffic rose just one point to 48 and is the only measure in negative territory.

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New Home, Less Space? Here is Some Advice

If you have been able to purchase a new home, and you were able to afford a little less space than expected, there is no reason why your new home has to look or feel crowded, even if you have less square footage. Below are some tips to help you expand the look and feel of your newly purchased home.

1. Even if you like a lot of light, overhead lighting illuminates a room too much and actually emphasizes the size of the room. This means that if the room is smaller than you would like, excess lighting will reveal this. It is recommended that you use smaller lamps and focused lighting on the areas of the room in which you will occupy or spend the majority of your time. Table lamps and unique lighting selections can also make your decorating eclectic and inviting.

2. Color coordination – maybe a small palette of just a few colors – will make the house seem to “flow” together 12-22 Madisonville Oaks Master Bedroominstead of using a different color in every room.  By using too drastically different of colors, you are highlighting the fact that every room is separate, which may make the focus on the room size more stark. With a blended palette throughout, your room spaces may blend together more seamlessly.

3. Some people think that getting a shower enclosure is a good way to create more space in the bathroom. However, by installing a shower door, you only are creating two cramped spaces instead of a larger vanity area space. By installing a panel that can open, which only covers 1/3 to 1/2 of your shower space, you are creating a versatile space between your vanity area and your shower area.

4. When choosing your decor, think, small and delicate in order to utilize your cubic space instead of your square footage.  Oversized couches, beds, and bedroom furniture can take up all of your space and make the rooms seemed cramped and tight to move around. Have fun choosing decorative furniture that is simple in design and takes up less space.

5. If you have the ability, try to use all light colors in your kitchen, including your kitchen cabinets. Dark cabinets make a room seem much smaller, especially if your kitchen cabinets go all the way to the ceiling. Even though the storage space is great, the cabinets will seem to “swallow” the room, and a lighter color may deflect this feeling. If your cabinets don’t go all the way to the ceiling, and you have your heart set on dark cabinets, try using a sharply contrasting wall color (black and white) to set off the cabinets and give them a more aesthetic appeal.

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Historic District of Covington to Feature New Art Market Location

Located between N. Columbia Street and N. Florida Street is a slight street in Covington, Louisiana’s downtown district named Hotel Alley.  Streets in the historic district of Covington, formerly known as Division of St. John, are laid out in unique patterns of squares within squares called ox lots. This peculiar design is how the downtown district got placement on the National register of Historic Places in 1981.  The main streets, laid out horizontally, are accessed by alleyways.  That is how this particular street – Hotel Alley – came to be named.  Now, the St. Tammany

Art Association is planning on completely “renovating the street,” and renaming it: Art Alley.

Art Alley, currently a strip of asphalt, will be getting a new look, complete with cafe-style lighting overhead, connecting between the Art Association’s Art House and the H.J. Smith & Sons General Store and Museum; a lit-entry archway, a mural, and removable bollards to close off the street for special events. The special event, which will benefit from this street renovation is the Covington Art Market.  This year’s Covington Art Market will be held on October 7, 2017, from 9am – 1pm at the new Art Alley location.  Formerly located at the Covington Trailhead, the October Art Market will feature artists: Susan Carver, Wess Foreman, Julie Katich, Richard Lo Piccolo, Linda McNeely, Jeffrey Minzey, Ruth Ostarly, Allison Radtke, Jason Ronquillo, Kristy Ruffino, Robert Wagner and Chuck Wright.

“Throughout the United States, cities of all sizes are embracing what’s known as ‘Creative Placemaking,’ the art of transforming ordinary spaces into extraordinary places that promote a sense of community, spark commerce and enhance areas by creating cultural hubs of activity,” said Kim Bergeron, STAA’s executive director.

The October Covington Art Market is also doing something a little different.  They are partnering with American Art Therapy Association and the South Texas Art Therapy Association to provide hurricane relief efforts to children affected by Hurricanes Harvey and Irma.  The visitors of the Art Market can contribute to an art supply drive which will then be donated to those children in need. The effort is being spearheaded by Jaclyn Warren MS, ATR-BC, a STAA Artist Advisory Board member and president of the Louisiana Art Therapy Association. Colored pencils, crayons, cay-pas, unruled journals and sketchpads, and coloring books are just some of the supplies that can be donated.

“We hope the community sees the possibilities that Art Alley offers and embraces our efforts to bring that vision to reality,” Bergeron said. “And, of course, a visit to the art market is an opportunity to discover new talents and to celebrate our community’s artists.”

For more information, call 985.892.8650 or visit www.sttammanyartassociation.org.

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Increase in Private Residential Construction Spending

Private residential construction spending is spending on construction by private parties and homeowners.  Data about this construction spending is collected from retail and wholesale outlets nationally. It seems that homeowners and small builders have a positive outlook on the economy and are spending money on new home construction on their own land or lot, as well as additions and remodeling to existing homes that they own.  Many people buy land12-196 Bedico Creek Mud Room and hold it for awhile before they decide to build a new home.  By owning land, there is an opportunity for new home builders to be able to more easily qualify for a construction loan by utilizing the equity in the land.

In addition to new home construction, homeowners are improving their homes as well, by contracting popular remodeling projects, such as kitchen, master bath, and outdoor area remodels.  Additions of pool houses, mother-in-law suites, and over-the-garage apartments are also popular construction projects for existing homeowners, which contribute money to the total amount of private construction spending during the month of July.

The National Association of Home Builders (NAHB) did an analysis of the Census Construction Spending, and the data showed an increase of private residential construction spending of .8% in July over June, 2017, to an amount of $523.1 billion.  This increase was also an 11.6% increase year-over-year compared to 2016, and it was the third consecutive monthly increase for private construction spending after it went down slightly in April, 2017.

The breakdown in construction spending between single-family home construction and home improvement of existing homes shows that new home construction went up by .8% compared to June to reach $264.1 billion, and $192.4 billion was spent on home remodeling or renovation, which was a 1.41% increase month-over-month.  Also remodeling / renovation spending was up a total of 16.5% year-over-year compared to July, 2016.

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NSA Index Is Reporting an Increase in Home Prices

The U.S. National Home Price NSA Index is reporting an increase of 4.3% over the peak of the same index in 2006, which was at its highest level right before the housing crash.  Home prices went up in June, 2017 5.8%, which was slightly higher than May’s 5.7% increase.  The index, which is formally called the S&P CoreLogic Case-Shiller U.S. 6-Lot 127 Maison du Lac Kitchen IslandNational Home Price NSA Index, was also up 43.7% above its lowest point in 2012 after the housing market crash.  Home prices have continually risen since the real estate market began its recovery, and they continue to climb. In fact, housing pricing reached another all time high in June.

“The trend of increasing home prices is continuing,” says David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. “Price increases are supported by a tight housing market. Both the number of homes for sale and the number of days a house is on the market have declined for four to five years. Currently the months-supply of existing homes for sale is low, at 4.2 months. In addition, housing starts remain below their pre-financial crisis peak as new home sales have not recovered as fast as existing home sales.”

According to Blitzer, the housing market now has the “problem” of not having enough supply to meet the demand.  Even with the increase in home pricing, there is a reason that home buyers are still purchasing homes for sale despite the continuous price increases.  Unemployment rates continue to decline, and jobs are being added to the market at an average pace of 200,000 jobs per month.  Mortgage rates have flinched with increases from the Federal Reserve, but they are still holding steady at or below 4%, which is a historically low interest rate for home buying purchases.

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Know Your Home Buying Process

There are many tools that you can use during the home buying process.  You can do the majority of your own research by using online resources on the Internet.  You can manage your finances and credit and get quotes from lenders and banks on your mortgage.  You can research different areas of town to find the best locations to buy your home by checking out reviews of area information.  Once you find out how much you are able to spend, where you

want to purchase your home, and different homes that you would like to actually go out and visit, you can retain a Realtor to act as your buyer’s agent to buy your new home.

Even if you hire a Realtor, you are going to want to stay the savvy, “in the know” home buyer who knows the questions to ask and the information to get in order to get the best home for the huge investment that you are going to make on your home.  Below is information which is important to know when buying a new home.

What Is Allowed

Unless you are buying a home in an established community with known restrictive covenants and a homeowners association, you are going to want to make sure that anything you want to do to or store at your home is allowed. 12-22nd Avenue Patio & Pavers Zoning laws can hamper a new homeowner’s aspirations by not allowing you to run a business out of your home, build a workshop at your house, build a fence, store your boat or RV, or add an addition.  So, before you sign on the dotted line, be sure to know if the home you are buying has any zoning or covenant restrictions.

Use an Inspector

If you are buying your home “as is” with no changes or required improvements by the seller, then you won’t need to worry about the condition of the home.  However, if you want to make sure that you get your return on investment, and don’t “buy a lemon,” you will want to make sure you get a home inspection.  Realtors know many people in the real estate industry, so they may be able to recommend a quality inspector to you, but make sure that the inspector they use is extremely thorough and has your, as the buyer, best interests in mind when making the inspection.  You definitely don’t want an inspector who glosses over a report so that your Realtor can “make the sale.”  You may want to get a referral and hire your own inspector.  If necessary, get the seller to cover the cost of a home warranty that covers all major appliances and structural systems of the home to “cover your bases,” as well.

Your Contract

Just like your parents and teachers always taught you, don’t sign anything unless you read it.  This applies to every piece of paperwork that you are going to sign regarding your new home purchase, from your contract, to counter 6-22nd Avenue Backlit Cabinetryoffers, to waivers, to your closing documents.  Not only should you make sure that you read everything, but you should also be sure to “read all of the fine print.”  If there is anything that you absolutely don’t understand, make sure you get it clarified before you sign anything.  Another important point about this is to get everything extra in writing.  This includes everything that is outside of or not written on the paperwork that you are reading and signing.  If the seller promises to fix a faucet, repair a door frame, or include additional equipment to “make the sale,” make sure you get it in writing.

Negotiate Everything

Most everything is negotiable when buying a home from the home price, the purchase of a warranty, home repairs / deductions, and closing costs.  Any chance you see to save yourself some money, attempt to negotiate.  It never hurts to ask the seller, especially if you are already qualified with guaranteed money from your lender.  The worst thing that can happen is that the seller can so no.

Using the tips above along with the other tools at your disposal to make a good home buying decisions, you can retain a Realtor and then monitor the process yourself to make sure that you are fully informed during your home buying process.

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How to Be the Expert Home Shopper

Finding a new home to buy is an exciting and even entertaining way to spend your time.  The thrill of knowing that you are soon to become a homeowner and “have your own place” is one of the best experiences that you can have.  However, below are some tips on how to be the expert home shopper when it comes to finding either your dream home or your next investment.

Timing

There are a couple of things to take care of before you start your home shopper experience.  First of all, make sure you give yourself plenty of time, dependent on your personality, to make a good choice of a home to buy.  This means that you don’t want to start looking for a new home when your lease is about to expire in a week or your are required to move within a couple of weeks.  Because it’s such a huge investment, buying a home shouldn’t be a rushed

decision unless you are good at seeing something and making a quick decision, and you are comfortable with this process.

Secondly, find out how much home you can buy – how much you can afford. You will want to carefully and thoughtfully narrow your search to homes for which you are able to actually get a loan, so you don’t waste your time touring homes that may be out of your price range.  Also, be sure to put yourself in the best position as a buyer by getting a lender commitment letter to show that you pre-qualify for the financing on a new home.

Decide Your Features

This is your dream home, so dream big.  Sit down and brainstorm the features that you want in your new home.  Decide what you can and can’t live without and then stick to your list.  If a home that you are touring measures up to most of your wishlist, and you are willing to compromise on some items; that’s o.k. as long as your began your search with a clear idea of exactly the type of home you wanted to buy in mind.

Be Organized

Once you have given yourself plenty of time, gotten pre-qualified for your loan, decided what you wanted in a house; then you can begin the home buying process.  Stay organized by possibly using an app to map out the homes you are going to look at, take notes about the homes that you especially like so you can keep your choices straight, and make sure you have enough time in a day to tour everything you want to see. If necessary, break up the tour days to allow

yourself time to take a lunch break, relax and consider home options, and simply take care of yourself.  This isn’t a race, it’s a marathon, and there may be many homes in the bunch that you look at before you find the perfect one.  Dress comfortably with the weather in mind, and you might even want to wear shoes that slip on and off for those particular homeowners who require you to keep their floors neat and clean.

A Second Look / Comparison

Once you have your list of top selections, go out and tour them again because the second time through might help you see pros and cons that you didn’t see the first time through.  You will want to do this in a timely manner for homes that you really like because real estate is booming throughout the country, and homes are not staying long on the market. Home inventory is down to just over a 4-month supply which is the sign of a healty economy.

If you are interested in buying a new home for sale, Contact Ron Lee Homes at 985-626-7619 or E-mail [email protected] for more information on New Homes for Sale.

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New Home Buying Trends of Millennials

Since the late 1990’s, home buyers interested in a buying a home have dramatically increased their usage of the Internet to find available homes for sale. In fact, 2016 statistics from the National Association of Realtors show that 95% of home buyers used Internet searches throughout their home buying process.  Of that 44% of home buyers started their home search online. And, 100% of home shoppers used the Internet to search for a specific property address.

Of these home buyers, 99% of Millennials, the new generation of home buyers, used the Internet to search for homes for sale compared to 89% of the Baby Boomer generation.  And, Millennials are known for their intensive and overwhelming dedication to complete research of any product that they will buy.  This generation is known for17-12 Bedico Creek Private Back Patio visiting multiple websites to compare just one product before purchasing it.  Also, Millennials are just now able to find employment in their field and begin to pay off student loans and begin their search for a home now that employment is on an upward trend after the Recession.  Because of the limited availability of extra cash for a down payment and the tightness of home inventory available to new home buyers, especially first-time home buyers, Millennials are interested in purchasing a home that does not need a lot of work or improvement in order to be able to support themselves and not spend money on repairs or renovations.

What has materialized out of this information is that Millennials may purchase a new home for sale, built brand new buy a builder instead of a “fixer-upper” home that requires additional money for upgrading or improvements.  Also, Millennials typically purchase their “starter home” with plans to move again soon in the future to a 2nd or 3rd home choice, so they actually spend less time in their first home purchase than previous first time home buyer trends would indicate.

This information has given valuable insight to professionals who assist Millennials in the search for the home that they are buying.  Builders know that Millennials may prefer to buy a new versus a previously owned home, so as long as they are a quality builder whose work is showcased effectively to a Millennial buyer, they start out with an “edge” over the competition.  This information has also helped Realtors who assist Millennial buyers by helping prep home sellers who have homes to sell in the price range of Millennial buyers to make sure their homes are improved, upgraded, and ready to sell without any additional construction or renovation work required.  Millennials tend to buy homes that are “just right.”

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A 20% Increase in Home Sales During May

There is absolutely no doubt that the housing market is recovering steadily without any pit stops along the way. As statistics are released each month by multiple agencies, the news is always the same: records are being set, year-over-year increases in new home sales, existing home sales, and all home sales are happening almost every quarter, 12-932 Beauregard Pkwy. Custom Pavers in Courtyardand the built-up housing inventory of the Recession is in its 103rd consecutive month of year-over-year decreases since the market dropped out in October, 2008.  That last statistic is pretty mind boggling when you think about how bad builders and home sellers alike were suffering, holding onto properties and paying the taxes, mortgages, and expenses on these properties – waiting for the market to turn.

Well, the good news is – it has! May, 2017 is showing the strongest sales numbers for any May in the 9-year history of the RE/MAX National Housing Report – a 20.6%, year-over-year increase of total home sales compared to 2016.  Two other records were also set during the month of May: the average time a home for sale was on the market was only 51 days, and the housing inventory supply shrank to a 4-932 Beauregard Pkwy. Batten Board and Wooden Beamshockingly low time period of only a 2.6 month’s supply.

What isn’t news and is still being watched by many economists is the average home price increased to $232,500 – the second highest price in the month of May in the history of the report behind the median sales price of $236,062 in August, 2008, right before the Recession. Home prices and rising interest rates have been a concern as home buyers are trying to get loan approvals to being the home buying process.

“In May, we saw an uptick of both loan applications and home sales, which is encouraging in terms of more people getting into the market for homes,” said Adam Contos, RE/MAX Co-CEO. “We don’t expect that the Federal Reserve’s announcement on Wednesday to raise interest rates a quarter of a point will greatly affect the market’s momentum. But housing demand only intensifies the tug-of-war with tight inventories driving prices up.”

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Should I Rent or Should I Own

Do you ask yourself the question should I rent or should I own? If you are looking for a smart investment then owning is the way to go. Here are some things to think about when weighing owning versus renting.

Whether you are renting or purchasing your money matters!  Research where to get the most return for your money.2-753 Bedico Creek Custom Paver Entryway The amount housing prices go up will greatly affect your return.  There are many resources to tap into where you can find great information about retirement, saving for college, investing and online financial services.

Look at a mortgage on a home as a means of saving money. A great advantage for homeownership is the ability to deduct your mortgage interest from your taxable income.

“Another primary advantage is the opportunity to build wealth via earned equity that is not available through renting,” says Daren Blomquist, senior vice president for ATTOM Data Solutions. “We know that home values do not always go up. But over the long term, they have consistently trended higher.”

Many people think of stocks, bonds, savings accounts, retirement accounts and cd’s as solid ways to save your hard-earned income but there can be challenges with these as well.  You might plan on and begin to set away a certain amount of income to one of these investments each month, however a life-changing event such as aging parents, growing children, job loss or health issues can wreak havoc on this plan.

Right now, a mortgage is more affordable than rent.   According to the U.S. Department of Housing and Urban 20-324 TerraBella Custom Hot Tub & PoolDevelopment, Bureau of Labor Statistics and Realty Trac, fair market rent on a 3-bedroom home is less affordable than a mortgage on a median-priced home in a majority of the counties across America.  Monthly rent takes up 38.6% of average wages where a mortgage only requires 36.6%.  Fair market rents across America are rising faster than the average wages.

Blomquist comments, “Today’s near record low homeownership rate, combined with low inventory of rental property, have combined to push rental rates higher during the housing recovery. In the majority of markets, home price appreciation has been outpaced by growth in rental rates.”

Remember it is not just a financial choice but an emotional choice as well when making a decision on your primary dwelling. Where we live makes a huge difference in our everyday life. From use of space to a lush backyard garden, to the installation of a fountain, outdoor kitchen, firepit, or home pool, Homeowners can enjoy more privacy and flexibility to make changes to their living space.

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