Newly Built Home Sales Rise 25.8% Year-Over-Year

Just like summer here in New Orleans, July’s housing market was hot! The new home sales activity is on its way back to normal with annual home sales already reaching 507,000. The Census Bureau and HUD reports that newly built home sales rose 5.4% from June of this year and 25.8% from July of last year.  New home inventories were reported at 218,000 in July which is the highest level that have been seen in over five years.
This increase can also be seen in private residential construction spending where the high was at an annual rate of $387 billion in July.  This solidifies the continuing economic growth in the construction industry.  Single-family homes have pushed construction expansion 15.8% on a year-over-year basis and multifamily new home construction spending is 21.2% higher than it was reported a year ago.

Developers are not the only ones that are seeing a positive growth, the National Association of Realtors (NAR) reports increase in existing home sales.  Existing home sales increased in July 0.5% from June and 7.4% from July of last year. Completed sales (closings) were reported at the highest since February 2007.

The confidence for home buyers stems from the strengthening economy.  The Bureau of Economic Analysis reports that the global economic developments (GDP) growth is at a strong 3.7% rate.  These findings were based on several factors including investment, faster growth for consumption, government spending and trade components.

Now is the time for buyers buying new homes or existing homes to tap into the housing market. Sales are solid which makes the real estate market a stable venture. New home prices are continuing to strengthen making real estate a great investment.

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More Homes Are Being Built to Supplement the Housing Inventory Shortage

A shortage in homes and a strong job market in the Greater New Orleans area definitely strengthened the housing market, especially in new home construction and the advent of new subdivisions. Solid hiring in the job market, low mortgage rates and easier credit conditions have driven the demand for new home buyers to purchase a new home for sale. The Greater New Orleans area alone represents 20% of the new jobs that have been created this year in the state of Louisiana which has led to the strong home sales on both the north shore and the south shore.

West St. Tammany Parish has seen a decrease in housing inventory making the average sales price increase.  The housing market in general is leaning more towards a seller’s market because of the lack of supply of homes for sale.  This lack of inventory in homes priced from $190,000 – $300,000 is causing a bidding war pulling the average sales price for metro New Orleans up by 7.8% from $197,300 to $212,610. New Orleans has seen an increase from 21,954 homes sold annually in 2010 to 30,322 in 2014. Homeowners are starting to realize that this is the time to sell, and for home builders now is the time to build new homes for sale in St. Tammany Parish on the northshore.

On the flip side, home buyers will not have long to wait because more homes are being built which means the inventory problem will start to correct itself. According to Richard Haase, president of NAI/Latter & Blum, who reported at the UNO/Latter & Blum Economic Outlook & Real Estate Forecast Seminar for the Northshore Region, which was held at the Clarion Inn & Suites Conference Center in Covington, ”There’s a lot of pent-up demand,” he said, because tight lending standards have kept potential buyers out of the homebuying market, even as the economy recovered. ”For the next one or two years, I’m extremely optimistic about housing prices and housing affordability,” Haase said. ”We’re in a very healthy supply-and-demand market.”

Bedico Creek Preserve in Madisonville, Louisiana, offers new homes for sale that could plug the dearth of homes priced from $190,000 – $300,000.  Two neighborhoods being built in this master planned community in St. Tammany Parish offer new homes for sale from the $230’s – $300’s. 

These two neighborhoods are called Cypress Crossing and Deer Park.  Also, if you purchase one of our lots for sale in the Garden / Courtyard section of this St. Tammany Parish subdivision, you can build a home starting from the $290’s.  For more information about our homes for sale, Contact Bedico Creek at 985-845-4200 or E-mail Info@LiveBedico.com.

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