Reasons For The Continuing Price Appreciation

 The current shift in the market will cause a slow down in price growth but professionals in the industry report that price appreciation will keep going. Good news for sellers as the home prices will not drop.  There are two reasons why this is the case: supply and demand. 

Housing inventory is increasing in 2022 but it is a slow increase and housing demand is still low.  The reason we do not have enough homes on the market today stems from the 2008 crash.  After the crash, many builders and businesses in the industry closed shop.  Now that the housing market is hot with buyer’s demand, there are not enough houses being built.  After the crash in the housing market there has been a long period of underbuilding.   Since this has been going on for fourteen years, it will take awhile to build back from the underbuilding of new homes.

Even though we are seeing higher home prices and an increase in mortgage rates, this does not mean that buyer demand is cooling off.  In fact experts predict that Millennials will keep the buying momentum going.  The reason we are seeing the Millennials flooding the market is due to their agining into their peak homebuying years.  The Millennial demand coupled with low housing supply is causing the pressure to rise on home prices.

” Millennials continue to transition to their prime home-buying age and will remain the driving force in potential homeownership demand in the years ahead”, says Odeta Kushi, Deputy Chief Economist at First American.

” After all, supplies of homes for sale remain near record lows. And while a jump in mortgage rates has dampened demand somewhat, demand still outpaces supply, thanks to a combination of little new construction and strong household formation by large numbers of millennials “, says Bankrate.

Home prices are not going to fall due to these changes. Since there is still an unbalance between demand and supply.  Like with all products in any market, supply and demand  will predict the market.  A local sales agent can help you navigate the home buying process even when the market is shifting.

Click Here For the Source of the Information.

The Future Looks Bright for Camellia Bay, a New Casino Project Planned for St. Tammany

 

P2E, also known as Peninsula Pacific Entertainment, has developed a plan to build a $329 million casino resort called Camellia Bay in St. Tammany on the vacant land close to Interstate 10 twin spans. Developers have been working on the proposal for months now and are ready for the vote by St. Tammany voters this December.

The project can have a great impact on St. Tammany's economy. The casino would bring tourists to the area and draw them to other events and attractions that are helped along the Lake Pontchartrain waterfront in Slidell. Many locals are worried that the project could also have negative impacts on their community.

Some St. Tammany Community residents are concerned that the casino would bring crime and decline to property values. This is not necessarily the case according to the Convergence Strategy Group.

"Through the research we see moderately positive impacts from similar developments across the country all the way down to just no impact, but we have not been able to uncover the negative impacts that many communities have feared," said Suzanne Leckert, an author of the study.

CSG is a research firm that is based out of New Orleans. They have over 40 years of experience in studying the leisure and gaming industry. According to their study, they found that a casino in the Slidell area would likely have a "moderately positive to negligible impact on surrounding businesses."

The study included an intense look into the proposed development's impact on the community. This includes a range of impacts from small businesses and tourism to crime and marriage or divorce rates. They looked at data that has been collected from the Bureau of Labor Statistics, the U.S. Census, municipal governments and interviews with local leaders.

Property values will not drop according to the study. CSG cited that after MGM Springfield opened in Springfield, Massachusetts property values saw a 21.4% increase compared to the smaller growth increase of 2.3% - 14.3% in surrounding areas. Another casino close to home in Baton Rouge, L’Auberge Casino, saw a higher property value increase close to the casino.

"The community impact study provides an abundance of data and information for St. Tammany residents to take into consideration to help them make an informed decision about this project," Masingill said. "This project ... has really been reviewed, has been scrutinized from every single angle. We know that there's a significant campaign of misinformation and distortions and, look, we want people to have all of the information."

Click Here For the Source of the Information.

2021 Third Quarter Up From Third Quarter of 2020 For the NAHB/Royal Building Products Remodeling Market Index (RMI)

 

The remodeling industry confidence has seen an improvement year over year when it comes to home remodeling. The National Association of Home Builders just put out its NAHB/Royal Building Products Remodeling Market Index (RMI) for the third quarter which saw a reading of 87. This is five points above the reading of the third quarter in 2020.

“Demand for remodeling remains strong, and remodelers are doing quite well as long as they can adequately deal with material and labor shortages,” said NAHB Remodelers Chair Steve Cunningham, CAPS, CGP, a remodeler from Williamsburg, Va. “So far, a substantial share of their customers have been willing and able to tolerate the extra cost and delays of requested remodeling projects.”

The RMI was changed in 2020 in response to a need to "improve its ability to interpret and track industry trends." Seasonally adjust quarter to quarter data cannot be compared due to the redesign. The quarterly data is gathered now by asking remodelers to compare the market conditions during the survey quarter as better, about the same or worse. Interestingly enough, 78% of those who answered the survey rated the current market about the same.

The Current Conditions Index also came up with an increase from 2020. The third quarter of 2021 averaged 90 which is a four-point increase from the third quarter of 2020. Each component compared had an increase. These components include large remodeling projects ($50,000 or more) rose six points to 86, moderately-sized remodeling projects (at least $20,000 but less than $50,000) increased five points to 91 and small remodeling projects (under $20,000) inched up one point to 91.

The Future Indicator Index was up seven points from the third quarter of 2020 at an average of 84 in the third quarter of 2021. The components measured in this index are the current rate at which leads and inquiries are coming and the backlog of remodeling jobs. The leads and inquiries rose to 83 points and the backlog rose to 85 points.

“We are seeing strong demand and continued optimism in the residential remodeling market, despite the fact that supply constraints are severe and widespread,” said NAHB Chief Economist Robert Dietz. “For example, well over 90% of remodelers in the third quarter RMI survey reported a shortage of carpenters. And 57% of remodelers reported having slightly raised prices for projects over the last six months, with another 28% indicating a significant increase in price, due in part to higher material costs and ongoing strong demand. Half of these remodelers reported some pricing out of demand due to higher prices for remodeling projects.”

Click Here For the Source of the Information.