Tag Archive for: home for sale

New Homes for Sale Available Come at a Price

Curved breakfast bar with solid surface counter tops. The hardwood floors to through the kitchen. This is an open floorplan.

After the housing market struggled to make a comeback after the Recession, the supply of homes for sale and new homes for sale available in the real estate market has continued to decline. Because of this the supply of homes and new homes available to buy has decreased to a crucial point. That is that there is now more demand for homes to buy than there are homes and new homes on the market for sale.

Because of the lopsided nature of supply and demand in real estate, home prices have not only continued to increase, but they are still increasing at a rapid pace. According to Core Logic, a real estate analysis company which tracks housing trends nationwide, the price of homes for sale increased by 6.8% in June, 2018, compared to June, 2017. May, 2014 was the last time that housing prices had such a high year-over-year percentage increase, which was during one of the fast-paced recovery years of real estate after the Recession.

The price of homes continuing to go up is unsustainable as mortgage rates are also on the rise, putting the cost of theCurved breakfast bar with solid surface counter tops. The hardwood floors to through the kitchen. This is an open floorplan. monthly note out of reach for some home buyers. However, as long as demand continues to outpace supply, the prices will continue to have a “seller’s market” mentality for home buyers who are able to qualify for loans.

Another factor in the increase in home prices is that prices are now double that of the growth of individual’s growth in salary. However, there are signs that home prices will start to see a slow down as the S&P/Case-Shiller 20-city index had less growth during May, 2018 than May, 2017. There are also other trends that show an overall economic slowdown that have probably not translated to the real estate housing market just yet.

What you can take away from this news is that if you have a home to sell and are wanting to buy a new home or a home for sale, you will want to make sure you are able to move quickly on buying a home and actually moving out since it truly is a seller’s market out there. If you are buying a home in the St. Tammany Parish area, Contact Ron Lee Homes about our Homes for Sale or to build the home of your dreams in Mandeville, Madisonville, Covington, Abita Springs, or Folsom! Call 985-626-7619 or email [email protected].

 

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Challenges Facing Millennials to Buy a Home

With home pricing increasing in the last 3 consecutive quarters of 2016 and 2017, interest rates inching up because of the Fed allowing interest rate increases, and the supply of housing dwindling because of an active real estate market, the home buyers in the market to purchase a home are in for a lot of challenges as they try to find a home to2-324 TerraBella Front Porch View buy. Interestingly, the demographic of home buyers entering the market this spring is predicted to be 45% millennials.

“Millennials are mostly first-time buyers and they are competing against repeat buyers who have more buying leverage and experience,” said Javier Vivas, manager of economic research for Realtor.com. He added that Millennials recently became the dominant group of users searching for homes on the website.

Most millennials will probably be first-time home buyers, and these buyers new to the market will be going up against seasoned home buyers who know how to bargain and bid for the homes that they have been evaluating since last year. Combined with a rise of 7% in home values (according to Zillow) and a shortage of home for sale inventory in the housing market – approximately a 3% drop 2-352-B TerraBella Custom Home Exteriorcompared to the same time last year; millennials will need to approach their purchase decisions prepared both financially and proactively.

Homes going on the market in this type of environment are typically swooped up quickly or immediately have several people bidding on one house. Advice to these first-time buyers would be to establish your loan approval before even beginning the home search process so that you know exactly the type and price of home you can afford. Then, move quickly on any new homes for sale that come on the market.  If the bidding war gets out of control, move on to the next prospect because going out of your approval amount or budget will only hold up your ability to close the sale. Most of all, don’t get frustrated – interest rates, though going up slightly, are still historically lower than in any years past, making now an excellent time to buy a home.

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Terra Bella Village Open House This Sunday!

1-932 Beauregard Parkway Exterior Front932 Beauregard Parkway
Homesite 264
TerraBella
Covington, LA 70433

OPEN HOUSE THIS SUNDAY!

View This New, Custom Home for Sale!
Last Opportunity to Tour Our New Home!

Sunday, January 22, 2017
2:00PM – 4:00PM

Louisiana in Top Tier of States Leading Housing Recovery

NAHB Spring Construction Webinar Forecasts Strong Housing Growth

When comparing statistics in housing trends, the National Association of Home Builders place Louisiana in the top tier of states leading housing recovery nationwide.  The top states include Montana, North Dakota, and Utah, and the 2nd tier of states include Texas, Oklahoma, Louisiana, and Alaska.  There are several factors that contribute to Louisiana’s (and other states’) housing recovery.  Some states, such as the top 3 states of Montana,2-Woodstone, Lot 25 Exterior North Dakota, and Utah did not have as big of housing bubbles as other states.  Therefore, their “fall” during the Recession was not as great, so their housing recovery was faster and better.  States like Texas and Louisiana are mainly energy sector states, so the Recession did not cut as deeply into employment and statewide income as other states.  Baton Rouge, Louisiana, has consistently held one of the highest rankings in housing recovery since the beginning of 2015 which helps with Louisiana’s housing statistics.

“The basic principle remains the same,” said NAHB Senior Economist Robert Denk. “A strong economy – whether helped, hindered or unaffected by the energy economy – will be a key factor driving housing recoveries going forward.”

Economists predict that by the end of 2017, the top tier states will have a housing recovery of 102% of normal (based on statistics pulled of the housing numbers during the last “normal” housing market pre-Recession).  The bottom tier states will have recovered to just 65% of where they were before the Recession.  The reason for the predicted recovery numbers in 2017 is based on the underlying housing market fundamentals of population and insulation-1job growth which are typical in driving supply and demand in real estate.  The cycles of “boom and bust” are mostly over according to Denk.

“A common theme has emerged,” said Denk. “The progress of market recovery is no longer a function of the boom-and-bust cycle marked by price bubbles, excess supply and foreclosures. The key driver of the housing recovery is now back to the underlying housing market fundamentals of population and job growth.”

Factors that will help builders and sellers to sell their new homes for sale and homes for sale are a predicted increase in household formation by home buyers that were previously unable to secure a mortgage, stabilized home pricing that now offers tiers of homes for sale available and affordable to purchase, less foreclosures, rising employment and the first increase in wages in over 8 years, and home prices that are in line with incomes and rents making it an easier transition from renting to owning.

If you are a new home buyer who is interested in building your own custom, dream home in West St. Tammany Parish, Ron Lee Homes in Covington, Louisiana, offers full-service home building strategies such as custom home design, engineered floorplans, complete “end-to-end” home construction supervised by Ron Lee, financing and insurance assistance, and a hands-on approach to building new, custom homes in the Greater New Orleans area.  For More Information, Call 985-626-7619 or E-mail [email protected].

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