Tag Archive for: new home

New Home Buyers Have More Selection in New Homes

Even though the housing market has been making incredible strides in its recovery since its low in 2008, one of the major obstacles that has been holding the sale of real estate back is the lack of supply for the growing demand of home buyers.  New home buyers especially have been stymied by a lack of inventory from local builders.  Builders themselves have been frustrated by the tightened funding requirements for construction loans from79 Oleander Carriage Style Garage banks and lenders, so there is been a “stalemate” of sorts going on in the new home industry.

However, good news is on the horizon for real estate because single-family home starts have been on the rise and holding steady over most of the months of 2015.  Single-family home startss remained steady from August to September with 740,000 starts nationwide for both months.  Overall, housing starts (including multi-family housing) increased by 6.5% and reached the 1.2 million mark – the highest its been since October, 2007.

From a yearly perspective, quarter-over-quarter, single-family home starts are up 5.7% 3rd quarter from second quarter with a total of 746,000 home starts.  The numbers year-over-year show that single-family home starts are up 11% compared to 2014.

Another strong sign of new home real estate recovering is the number of housing permits for single-family home starts.  The number of permits for single-family homes went up 9.4% year-over-year and also remained unchanged compared to the previous month of August from September, 2015. Trends also show that money of the new home purchases are coming from “contingency sales” where a home buyer has a house to sell and wants to build or buy new which is excellent news for new home builders.

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Employment is Rising and Single-Family Homes Are Under Construction

New jobs reports and the falling unemployment rate have brought about a positive economic outlook of many Americans in the U.S. The employment growth is a big reason for both the real estate and housing industries’ latest boom both with new construction homes for sale as well as resale homes for sale. The strong job reports have encouraged many to believe there is not a “double dip” recession looming so many are relieved and feel confident in purchasing a new home. Everything from apartment buildings (multi-family homes) to single-family 79 Oleander Court Front Exteriorhomes are under construction everywhere you turn in the country.

The rise in household formation by millenials as well college grads that have finally been able to get a job has led to new houses being built which has attracted workers in the construction industry. Employment in the field of construction reflects an average of 20% of the jobs that have been recently created. The American Association of General Contractors showed 80% of construction firms planned to hire this year. JOLTS survey showed an increase of 36% in the number of construction job openings year-over-year.

Mark Vintner, senior economist at Wells Fargo Securities says, “Home building will be one of the economy’s largest upside surprises in 2015.”

This is very good news for those looking for employment in the construction industry. Contractors are desperately seeking those who are skilled in all areas of construction which include part time and full time employees as well as sub-contractors. Vintner points out that overall, nationwide, there is a shortage of skilled construction workers. 028The American Association of General Contractors also reports that 87% of construction firms are having difficulty filling positions. Moody’s Analytics Adam Ozimek believes the shortage is due to lack of wage growth in the construction industry. However with the decline in unemployment, the job market will soon become an “employees’ market” instead of a employers’ market, which should drive up competitive hourly and salary wages. For the construction industry, this should put many out-of-work carpenters, builders, plumbers, electricians, and day laborers back to work with a healthy salary. Ron Lee Homes has been following this construction employment trend in St. Tammany Parish by expanding its services to include remodeling as well as custom home construction. To build your new, custom home today, Contact Us at 985-626-7619 or E-mail [email protected].

 

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10 Reasons to Buy a New Home

With the house market in full recovery, and home inventory tightening up nationwide, you as a home buyer have a very significant choice to make when deciding the type of home that you would like to buy.  Location is always important, and price is normally a deciding factor, but there is one other huge consideration you should make when purchasing your home – choosing to buy a new home vs. buying an existing home.  Below are 10 reasons to buy a new home vs. an existing one.

1. Tax Benefits:  Each month as a renter, you spend about the same amount of money as a mortgage and get none of the benefits while your landlord pockets your rent, increases equity, and writes of property tax costs.  As an owner of a new home, you will receive all of the tax benefits of owning your own home PLUS, if you have savings from a retirement IRA account, you can pull out $10,000 from this account – tax free – as long as the money is used for a down payment on your home, and you are a first time home buyer.

2. New Home Warranty: Buying a new home vs. buying an existing home gets you brand new everything – windows, doors, paint job, carpet, appliances, and all of your lighting and trim.  When you buy an existing home, you may have the unwanted chore of constantly replacing worn out parts of your home.  Also, your new home comes with a 1, 2, 5 warranty per Louisiana law which protects the home in its entirety the 1st year, all major structural components for 2 years, and framing and infrastructure for 5 years.

3. Repairs and Maintenance: In addition to replacing components, existing homes come built-in with a honey-do list.  You could be repainting the interior and exterior, upgrading / renovating the kitchen cabinets and countertops, and replacing door knobs, hinges, and other pieces and parts of the home.  With a new home, you don’t even have to worry about things falling apart for a few years at least if you have purchased a quality-built home in St. Tammany Parish.

4. Energy Efficiency: Green building has become standard for many home builders in St. Tammany Parish, and Ron Lee Homes is a Certified Green Builder by the National Association of Home Builders.  By installing all green building features, you will not only get the benefit of owning a brand new home, but you will save money in the long run with lower energy bill as well as the environmental satisfaction of reducing greenhouse gases.  With previously owned homes, especially homes older than 1980, you will be dealing with less efficient home openings, insulation, and HVAC systems which will increase the cost of heating and cooling your home.

5. Smarter, Safer, Well-Built: New systems installed in new homes now come with smarter and better working fire alarms, security systems, and smoke detectors.  There is even certain types of primer boards, plywood, and sheetrock that is fire resistant to withstand a fire event.

6. Credit and Financing: Buying a new home allows your mortgage company, lender, or banker more options in choosing the right loan for you.  Especially if you are investing wisely, your home may appraise for a higher amount allowing more equity and better interest rates.

7. Low Interest Rates: With all of the worry that the Fed is about to increase interest rates, rates are historically low and are still at record-breaking lows compared to any previous year of buying a new home.  Because you get to write the interest off on your taxes, it is a win-win situation when buying a new home.

8. Holding Its Value: Because you are buying new instead of previously owned, your home is in better shape and will last longer as long as you chose the right builder.  No matter how wonderful a previously owned home is, it will still “fall apart” eventually faster than a new home because it is older and more worn out.

9. Avoiding Health Risks: With the new information about lead paint and its effects as well as asbestos, many people are very aware that older construction can contain these hazards.  As long as you have hired a quality builder to build your new home, you will never have to worry about hazardous construction materials that could drastically affect your health.

10. Fun Choices: When building a new home, you get to put part of your personality into it by making selections such as cabinetry, countertops, paint, siding, flooring and much more.  In addition to being a part of building your own home, you can take comfort in knowing that you are making the biggest financial investment of your life – one that will give you equity and security for the future.

If you are ready to build your new home in St. Tammany Parish, Contact Ron Lee Homes, a custom home builder, at 985-626-7619 or E-mail [email protected].

 

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Unfilled Construction Jobs Are on the Rise in 2015

Good news for those who are looking for a job in the construction industry, unfilled construction jobs are on the rise in 2015, making the construction labor market a great place to start looking if you are unemployed.  Typically jobs in the construction field usually decline from March to April, but this year, the open positions in March were the highest since July 2007, and in April they were the third highest since the Recession. Mark Vintner, senior economist at Wells Fargo Securities comments that “home building will be one of the economy’s largest upside surprises in 2015.”

According to the BLS (Bureau of Labor Statistics) survey, “employment in home building/remodeling stands at 2.453 million, broken down as 696,000 builders and 1.757 million residential specialty trade contractors.” To sum it up builders and remodelers added 149,000 jobs on a net basis. Many experts believe that housing and construction jobs are the fastest jobs to bounce back after a recession because of expansion.  In fact, the constructions industry was responsible for 20% of employment created in April 2015.

The unemployment rate is not only falling in the residential industry but in the real estate industry as well which will boost the national housing market. According to the National Association of Realtors, “Pending Home Sales Index, based on contracts signed last month, increased 0.9 percent to 112.6, the highest level since April 2006.”

This is still a great time to purchase a new home because all fears of another recession are pacified while they are still not strong enough to cause the Fed to raise interest rates sooner than September 2015.  Household formation is going strong, and Americans are ready to become homeowners which is paving the way to the construction of new homes both single-family and multifamily. We can finally see the light at the end of the tunnel in the housing industry job market.

 

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