Good News for Homebuyers in the Current Housing Market

 

 

 

 

 

 

 

 

 

New Opportunities for Homebuyers: What You Need to Know About the Current Housing Market

If you’re a prospective homebuyer, we have some good news for you. The housing market is showing signs of relief, with lower mortgage rates and new opportunities for homeownership. For those who have been waiting for the right time to make a move, now may be the perfect opportunity to secure a home at more affordable financing terms.

This year, home buyers are in a better position than they have been in recent years, thanks to a combination of favorable market conditions and improving economic factors. In this article, we’ll explore how you can take advantage of these positive shifts, from historically low mortgage rates to tips for finding your dream home in 2025.

Key Takeaways:

• 2025 offers lower mortgage rates, making it a great time to buy a home or refinance.
• More housing inventory means more choices and less competition, giving buyers an edge in negotiations.
• Home prices are stabilizing, allowing for better deals and less bidding wars compared to previous years.
• Improving your credit score before applying for a mortgage can help you secure the best financing terms.
• Working with an experienced realtor can make the home-buying process smoother and faster, especially in a competitive market.

Why Now is a Good Time to Buy a Home

2025 brings a unique combination of factors that make it an ideal year for buying a home. Whether you’re a first-time homebuyer or looking to move up the property ladder, here are some key reasons why 2025 could be the year to act:

1. Lower Mortgage Rates
Mortgage rates have dropped significantly, making homeownership more affordable for many buyers. The rates are at some of the lowest levels seen since 2022, which means you can lock in lower monthly payments and save money over the life of your loan. Lower rates can make it easier to afford a larger home, a better location, or just reduce your monthly budget.

2. A More Balanced Housing Market
The housing market is slowly becoming more balanced after a period of high demand and rising prices. In 2025, homebuyers will find more inventory available, and while home prices may still rise in certain areas, they are expected to be more stable. This gives buyers more room to negotiate prices and potentially avoid bidding wars. 

3. Increased Housing Inventory
After years of low inventory, the supply of homes for sale is improving. More homes are coming onto the market, particularly in suburban and urban areas where there is high demand. This increase in available homes means you won’t have to settle for the first property you find. With more options to choose from, you can take your time and find the home that best suits your needs and budget.

4. Favorable Economic Conditions
The broader economy is showing signs of stability, with inflation rates under control and steady growth in job markets. As the economy stabilizes, more people are confident in making long-term financial commitments, including purchasing homes. For homebuyers, this economic stability means fewer surprises down the road and more predictable mortgage payments.

How Homebuyers Can Make the Most of Today’s Market Conditions

While 2025 is shaping up to be a great year for homebuyers, it’s essential to know how to navigate the market effectively to secure the best deal. Here are some practical tips to help you take advantage of the current housing landscape:

1. Lock in a Low Mortgage Rate Early
With mortgage rates still low, now is the time to secure the best possible rate. Shopping around for different lenders, comparing mortgage products, and locking in your rate as soon as possible can help you take full advantage of these favorable conditions. Even a slight difference in rates can result in substantial savings over the life of your loan.

2. Consider Your Financing Options
There are many mortgage options available, from conventional loans to FHA and VA loans. Depending on your financial situation, you may qualify for a government-backed loan that offers lower down payment requirements or more lenient credit score standards. It’s important to explore all your financing options to find the one that works best for your needs.

3. Improve Your Credit Score Before Buying
The better your credit score, the better your mortgage rate will be. Even if you are ready to buy, it’s worth taking a few months to improve your credit score before you apply for a mortgage. Paying down credit card debt, checking for errors on your credit report, and avoiding new large purchases can help boost your credit score and increase your chances of securing a low rate.

4. Work with an Experienced Realtor
A qualified realtor can be your best asset in a competitive market. They can help you find homes that fit your criteria, negotiate on your behalf, and guide you through the buying process. A realtor with local market knowledge can give you an edge in finding homes that might not be widely advertised and help you navigate potential bidding wars.

5. Be Ready to Act Fast
With more inventory becoming available, buyers have more choices than before. However, in a market with low mortgage rates, properties can move quickly. Being prepared with your financing in place and knowing what you want can help you make swift decisions when the right home comes along.

Key Trends for Home Buyers

• Mortgage rates are at record lows, making now the perfect time to buy.
• More homes are available on the market, increasing inventory and giving you more options to choose from.
• Home prices are stabilizing, giving buyers the chance to negotiate and avoid bidding wars.
• The economy is stabilizing, offering predictability for long-term homeownership.

Is Now the Right Time to Buy a Home?

For many homebuyers, 2025 is shaping up to be an ideal time to purchase a home. With lower mortgage rates, a more balanced housing market, and improving economic conditions, the next year presents an exciting opportunity for buyers to enter the housing market. Whether you’re buying your first home or upgrading to a new property, now is the time to explore your options and lock in favorable financing terms.

 

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The Best Investment You Could Make

 Today’s housing market is all over the palace. There are prospective homebuyers out there who are asking themselves if this is the right time to purchase a home.

The pandemic caused a crazy housing market with home prices skyrocketing and buyers in bidding wars. Today, the market is cooling off a bit because of the high inflation.  The average interest rate for the benchmark 30-year fixed mortgage reached 7.29%, as of July 31.

Even though these red flags might scare you, this is a great time to invest in the real estate market. According to Mike Biryla with The Agency, when there’s volatility in the housing market, it is a great time to purchase. “Sellers that are on the market right now are not opportunistic sellers. This isn’t the market where sellers can just try for a high number and see if it’ll happen,” says Biryla.

When investing in real estate, you need to remember that you are setting yourself up for the future. “If you’re not ready to take on that responsibility just yet but want to lock in an interest rate, buy it now. When it comes to real estate, I think it’s one of the best investments you could possibly make. It’s great for your portfolio and it’s great for your retirement,” says Emma Hernan of the Oppenheim Group.

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New Home Sales Are Still Climbing

 The New Year started off right when it came to new home sales as they rose 7.2% from December 2022 according to the US Census Bureau and the Department of Housing and Urban Development. This makes the seasonally adjusted annual pace at 670,000 homes. This is great news but is still down 19.4% on a year-over-year basis.

“January marked a surge of people signing contracts to buy new homes. The increase in contract signings can be attributed to a decline in mortgage rates in January after a run-up in rates in October and November. Rates have bounced higher since January, which likely is acting as a drag on new home sales in the meantime,” according to Holden Lewis with NerdWallet.

“The backlog of new construction homes continues to emerge into the market just in time for the spring shopping season. Many home builders are offering incentives to buyers sweetening the deal just enough to bump sales from the month prior,” said Nicole Bachaud, Zillow’s senior economist.

This caused a price drop which landed the median new home sales price to drop to $427,000 in January 2023. As far as the different regions, the sales price on a month-over-month basis was down 25,000 homes in the Northeast, 67,000 homes in the Midwest and 127,000 homes in the West. The South had jumped 17.1% to 451,000 on a monthly basis and the West was the largest drop at 46.9%

“There is still a large chunk of new construction homes currently under construction, and when those homes hit the market, especially over the next few months, we will see spring home buyers – those who can afford the higher new construction price tags- having more options and opportunities to break into homeownership,” says Bachaud.

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2023 Will Be a Big Year for St. Tammany When It Comes to Road Construction

 St. Tammany residents are very familiar with traffic congestion in the parish. There is faster growth in St. Tammany Parish than the road capacity can handle, especially at major corridors like Interstate 12. In fact, residents have gone to social media about such issues.

“Treat yourself like I-12 and never stop working on yourself, no matter how inconvenient it is to everyone else,” a poster quipped on one Facebook page devoted to the topic.

According to the state Department of Transportation and Development, they are in the second phase of the $187 million project of widening I-12. This includes 3 miles from Lousiana 21 to US 190 and along with that stretch, they will widen the bridge over the Tchefuncte River. The third phase will include from Louisiana 21 to Louisiana 1077 which will be bid on in July 2023. Sec. Shawn Wilson noted that it is taking a long time because the interstate work must be done in phases.

Along with the I-12 project, there are several other road construction projects happening in St. Tammany. One to note is the new 20-mile four-lane highway that will stretch between Lacombe to Bush. Another one is the new Bridge on US 190 over the Bogue Falaya River in Covington.

“These are very impactful projects to ease traffic and make it safer,” St. Tammany Parish President Mike Cooper said.

Over the next year, the DOTD will spend around $172 million on 22 projects in St. Tammany Parish. Another one to note is Louisiana 3241 which is funded by the 4-cent-per-gallon gasoline tax.

“It should have been here 30 years ago,” Wilson said of the highway that will run from the juncture of I-12 and Louisiana 434 in Lacombe north to Bush.

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Homes Sales Dropped For The 9th Consecutive Month October 2022

 Among these sale price drops seen in the past nine months, rising mortgage rates and high prices are two of the catalysts of the current situation. Buyers are getting fed up with this and are backing out of the housing market.

The National Association of Realtors reported that sales that include single-family homes, townhomes, condominiums and co-ops are down 28.4% from October 2021. Every region in the country saw a decline. This is the longest decline seen in home sales since 1999.

Home sales have been the weakest we have seen since May 2020 during the height of the pandemic. Current homeowners are not wanting to sell because of the uncertainty in the market. This is keeping the inventory low which is not helpful.

October reported 1.22 million units for sale. This is down from the month before and a year before. Currently, it would take only 3.3 months to get through what is currently on the market. A balanced market has around 4 to 6 months of supply. “Inventory levels are still tight, which is why some homes for sale are still receiving multiple offers,” Lawrence Yun, NAR’s chief economist added.

Yun also reports that household incomes have not risen enough to keep up with home prices. “First-time buyers are really struggling with high prices, the high bar to get into the market and high mortgage rates,” Yun says.

“This is why more new home construction is needed, as well as more rehabilitation of disused buildings into residential units,” said Yun, noting that while construction of apartment buildings remains robust, single-family starts are below one year ago and well below historical averages.

“In the meantime, mortgage rates are falling from the peak levels of last month and the gate is opening for more homebuyers to qualify for a mortgage.”

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Today’s Home Prices in the Current Market

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 There has been a lot of activity in the housing market when it comes to home prices. It seems that there is a trend of home price appreciation but with this same bit of news comes the fact the sellers are still reducing the price of their homes. So what is really happening with today’s home prices?

Industry leaders explain the differences between the terms used by the industry. Appreciation means when the home price increases, depreciation reflects a decrease in the home price and deceleration is when home prices continue to appreciate but at a slower and moderate pace. Today’s housing market industry leaders are seeing a deceleration. The home prices are still appreciating but not at a record-breaking pace as they have been in the past two years.

According to CoreLogic, in 2021 home prices appreciated by an average of 15% nationwide and at the beginning of 2022 appreciation was at 20%. Currently, it is predicted that prices will increase on average10% to 11%. On a year-over-year basis, home prices appreciated between 19% -20% from January to March of this year. The last few months, home prices have decelerated to 18%. They are still climbing but at a slower pace than compared to the same time last year.

“Annual home price growth dropped by nearly two percentage points….- the greatest single-moth slowdown on record since at least the early 1970s… While June’s slowdown was record-breaking, home price growth would need to decelerate at this pace for six more months to drive annual appreciation back to 5%, a rate more in line with long-run averages,” says Black Knight’s Monthly Mortgage Monitor.

So today’s home prices are not falling or depreciating, but decelerating or moderating nationwide. There are some pocket markets that are seeing declines because they are overheated. When looking at the country as a whole, prices will not depreciate or fall but will keep appreciating.

When you are in the market for a home and want to know about what the current market is doing, the best way to go about this is to hire a trusted real estate profession. A real estate professional can help you navigate the current market making sure you make the best decisions when it comes to your home.

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The 2022 Housing Market and How Interest Rates Will Change It

 For the past few years, the housing market has seen historically low-interest rates but this might change. Sources report that we will be faced with rising interest rates throughout 2022. Here are some tips that professionals in the industry look at when determining the change housing market.

This year the market is starting to slow down on refinancing and pick back up with purchasing housing. The 30-year loan average interest rate jumped from 3.5% to 3.64% in just two weeks int the beginning of the year. Home prices also increased close to 8% due to the fear rates will start to rise.

Fortunately, we no longer have stay-at-home orders and the unemployment rates are down 2.8% from this time last year. More homes are being built so the low inventory problem is resolving. Data shows that there is a 34% increase in new homes being built across the country. Job security and more inventory should encourage hopeful homebuyers.

The shift in remove work has also changed what homebuyers deem important in a home. As of September 2021, 45% of full-time employees worked remotely. More people are looking for a single-family home with more bedrooms and a finished basement.

The 2022 market is looking good. Just because interest rates are rising, doesn't mean now is not a good time to purchase a home. There are many factors that come into play that help balance the housing market event with high home prices and rising interest rates.

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Top Three 2022 Real Estate Investment Trends

 Today's housing market is booming and prices are continuing to rise. The National Associations of Realtors has reported that the median price of existing single-family homes has risen by double-digits in 78% of the tracked markets. Real estate investing is also increasing, and investors depend on key trends in the market. Here are the top three trends for 2022.

1. The Continuation of Historically Low-Interest Rates

Even with talk that the interest rates will rise next year, they still will be at historical record lows.  David Bianco, chief investment officer for the Americas at DWS Group, expects two quarter-point rate hikes next year. This should not be too much of a concern due to the 30-year Treasury bond is still holding at less than 2% and the 30-year fixed mortgage rates are a little above 3%. These lows will keep the housing market booming.

2. The Emergence of Alternate Property Sectors

With the expansions due to the hot market, investors are keeping an eye out for these opportunities. Investors are watching for single-family build-to-rent residential opportunities. Many homebuyers are still shying away from the cities after the pandemic scare. Due to this shift, build-to-rent properties are becoming popular. According to industry research, single-family homes built between 2019 and 2020 for rent increased 30%. "Last-mile industrial real estate has also become a big interest. Online shopping has grown especially during stay-at-home orders making warehouses a lucrative investment. Another popular opportunity currently is multi-asset real estate in the South East. Multi-family communities have steadily gained popularity.

3. The Sunbelt is Positioned for Further Appreciation

The Sunbelt includes cities that are located in the southern third of the country. The area is seeing a very strong demand for real estate. This strong demand is due to population growth, business-friendly local governments, and milder climates. Census data reports that the Sunbelt is home to 10 of the 15 fastest-growing cities in the U.S. States such as Tennessee, North Carolina, Texas, and Georgia are business-friendly which attracts higher real estate prices. A warmer climate allows for fewer maintenance expenses as well.

If you are a home buyer or an investor looking for real estate, don't do it alone. Contact a Realtor who can help you purchase a home or an investment property.

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Experts Predict Record Increase in 2022 for Conforming Loans

 The housing market has had some price increases in homes in the past year. The spike has not only hit the home buyer's pockets but has pushed the limits of conforming loans to what experts anticipate may be record increases in 2022.

The Wall Street Journal reported that the maximum loan limit will be close to $1 million for high-cost areas for Fannie Mae and Freddie Mac. Those loans that are over the loan limits will be considered non-conforming or jumbo loans and will also be charged higher interest rates.

Many home buyers are excited about the increase. Those in high-cost areas will now not be considered jumbo loans. "There are so many benefits to having a conforming loan, increasing the loan limits will be huge," said Melissa Cohn, Regional Vice President at William Raveis Mortgage.

Freddie Mac and Fannie Mae are not lenders but they buy loans back from lenders and turn around and sell them to investors. In turn, loans are cheaper for lenders and they can offer better rates to their consumers.

Now with the higher limit for conforming loans, more homebuyers will qualify. The consumer will spend less on their down payments and can have a lower credit score to be approved.

This change comes as the home prices have increased around 7.42% between the third quarter of 2019 and 2020. Due to the rise, the baseline maximum conforming loan limit will increase.

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August Sees A Rise In New Home Sales

 Inventory has been extremely low and buyers are in high demand and some prospective home buyers have been frustrated with the current market. This is not the case with the new home sales statistics. According to the Census Bureau, new home sales rose 1.5% in August 2021.

August saw a solid improvement in new home sales. The median home price was up 20.1% from August 2020 and is now $390,900. In fact, new home sales rose for the second consecutive month in August, the latest sign that homebuilders are recovering from problems that plagued them earlier in the year. The increase also reflects homebuilder sentiment that is on the rise as housing demand remains robust and the cost of lumber continues to ease.

New home builders still have the problem with building materials, the supply chain and labor shortages. These factors are also causing home prices to soar across the United States. This coupled with low inventory is not a good issue for both the builders and home buyers. It is reported that total for-sale inventory which includes new and existing homes has dropped over 20% from August 2020.

If you are in the market for a new home or want to sell your current home now is a great time. Even with the shortage of inventory, a professional sales agent can help you find the right home for the right price.

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Will the Fall Bring a Cooler Housing Market?

The National Association of Realtors says the housing market is hinting at cooling off this fall. This doesn't mean the market still will not be viable, it just will not be as hot as we have seen in the first half of 2021.

"There has been a turn in the market from superheated to still very strong," said Lawrence Yun, NAR's chief economist.

High home prices have detoured many from purchasing but this scenario is improving a little according to Yun. Unsold homes increased 7.3% from June 2021 to July 2021 and unsold inventory is up at a 2.6 month supply at the current sales pace. There is a balanced market currently at around a 6 month supply of homes.

"We see inventory beginning to tick up, which will lessen the intensity of multiple offers," said Yun. "Much of the home sales growth is still occurring in the upper-end markets, while the mid-to lower-tier areas aren't seeing as much growth because there are still too few starter homes available."

As of July 2021, the median home price for existing homes was up 17.8% from a year ago to $359,900. The year-over-year gains have increased for the past 113 months in a row. Cash purchases have remained strong with all-cash sales making up 23% of home sale transactions in July. This was up 16% from July 2020. Low mortgage rates are still helping the current market and homebuyers.

"Despite the ongoing challenges of today's housing market, including limited inventory, lightning-fast home sales and competition from investors with deep pockets, many buyers are finding ways to persist until they find and close on a home," said Danielle Hale, Realtor.com chief economist.

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Home Buyers Will Need Patience When Purchasing a Home in 2021

The current housing market is booming which is good news but is it for buyers? Homebuyers are facing many obstacles in this seller's market. In fact, it is one of the most competitive markets we have seen for homebuyers recently. According to the National Association of Realtors (NAR), homes that are for sale are getting around 4.8 offers per sale! This is due to the lack of inventory in the current housing market.

“The housing market is still relatively under-supplied, and buyers can’t buy what’s not for sale. Relative to what we saw in 2017 to 2019, March 2021 was still roughly 117,000 new listings lower, adding to the pre-existing early-year gap of more than 200,000 fresh listings that would typically have come to market in January or February. Despite this week’s gain from a year ago, we’re 19 percent below the new seller activity that we saw in the same week in 2019,” says Danielle Hale, Chief Economist at realtor.com.

Many are blaming the pandemic for lack of inventory because sellers are scared to have potential buyers in their homes but this is not the case. The main cause is the shortage of new construction of single-family homes. A chart which shows the completed single-family homes per decade shows a dramatic decrease from 2000-2009 to 2010-2019. From 2000 - 2009 12.6 million single-family homes were constructed and from 2010 - 2019 only 6.5 million single-family homes were constructed.

“Even before the COVID-19 pandemic and current recession, the housing market was facing a substantial supply shortage and that deficit has grown. In 2018, we estimated that there was a housing supply shortage of approximately 2.5 million units, meaning that the U.S. economy was about 2.5 million units below what was needed to match long-term demand. Using the same methodology, we estimate that the housing shortage increased to 3.8 million units by the end of 2020. A continued increase in a housing shortage is extremely unusual; typically in a recession, housing demand declines and supply rises, causing inventory to rise above the long-term trend,” says am Khater, Vice President and Chief Economist at Freddie Mac, Economic Housing and Research Division.

Freddie Mac estimates that close to four million homes will need to be built to meet the current demand. NAR reports that as of March 2021, there were 1.74 million housing starts which is the highest they have been in 14 years. This is an increase in both single-family and multifamily units. It will take around 4-8 months from start to completion on new construction so patience is needed.

If you are considering purchasing a home this year, you will definitely need some patience. A good idea is to contact your local real estate professional to help you navigate this demanding housing market.

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Current Lumber Shortage Takes No Toll on the Housing Market

Even with the lumber shortage and rising prices homeowners are still investing in their homes. Home Depot reported in May that their stock surged 20% so far in 2021.

"We continue to build on the momentum from our strategic investments and effectively manage the unprecedented demand for home improvement projects," Home Depot chairman and CEO Craig Menear said in a press release.

Menear says that the housing industry is steady and strong and will only continue to strengthen since COVID-19 restrictions are being lifted. More buyers are getting out there and looking and more sellers are eager to list their homes.

"The current shortage of new housing clearly is helping to drive improvements in the home values, which is a good thing for spending in the home," he added.

According to many other reports released, data shows continued demand for housing. Buyer demand is up and mortgage rates still remain at historic lows. Even with the shortage of lumber and other things such as a bottleneck in shipping appliances, new homes are still being built. The demand still sharply outways the current housing inventory.

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Five Signs To Look for To Know It’s the Right Time To Buy a Home

 

Today’s housing market is booming, sales are up, inventory is low, and mortgage rates are low. This is a competitive market for a buyer. Timing is everything and you want to make sure that what’s going on in the market and in your personal life makes this the right time to buy. There are many factors to consider when purchasing a home. If you are having a hard time deciding if now is the time, consider these five factors to help with your decision.

1. Your lifestyle has changed – or is about to

There are many seasons in our lives that can sway our decision on buying a home. Examples are having a baby, moving to a desired location such as the mountains or the beach, or downsizing as empty nesters. Big changes in our lives can be both planned and unexpected.

It is always a good idea to reevaluate your current living situation when big changes are about to happen. Before making the decision take the time to go over your needs and your budget to make sure they are in sync.

2. It’s the right time of year for you

According to Rocket Mortgage®, the prime time for buying and selling a home is in the spring and summer. This is when the market usually has the most inventory for sale and buyers out looking for a home. This might be the typical time of season to look if you are a buyer, but it might not line up with what is going on in your personal life.

Typically the spring and summer seasons are the busiest because growing families are looking to settle in a new home before the next school year begins. If you are an empty nester and can wait, the fall or winter might be your best time to purchase.

3. Mortage rates are low

The current market has seen record-low mortgage rates. Right now, you can purchase a home at a higher listing price because the monthly payments might fit your budget.

Interest rates play a big role in the monthly cost. For example, if you want to have a payment of around $1,500 a month, in today’s market you can purchase a home for much more with the low-interest rates. With today’s rates, you could afford a home for around $357,000 on a 30-year-fixed with 20% down. If the rates go up to 3.75% you will only be able to afford a home with a listing price of $328,000.

4. You’re financially prepared

No matter what season it currently is or how low the mortgage rates currently are, if you are not financially ready it is not your time to buy. Your financial profile plays a big part in the purchase of a new home. This includes your credit score and debt and income.

Make sure you can afford to take the leap into homeownership without too many risks. It is never fun to be “house poor.” When determining if you can afford to purchase a home, consider the cost associated with buying a home. These include home improvements, unexpected repairs, home maintenance, insurance and property tax.

5. You’re emotionally prepared

Purchasing a home is a big life-changing event. The home-buying process has many facets and you will want to have a good lender on your side. A mortgage lender can help you with all of your questions on loan types, calculating payments and managing your mortgage.

Educating yourself and have a professional by your side will help make this process less stressful for you. Both a Realtor and a mortgage advisor can help you learn the mortgage basics and help you determine what you can afford and where is best for you to purchase a home.

Remember before you decide to purchase a home, go to the experts. Choosing the right experts to go along with you during the process will help you reach your goal faster and more confidently.

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New Construction Homes Are in Demand but Face Many Challenges

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 The current housing market is strong and new construction homes are in demand. In fact, builder confidence is on the side of new construction as sales have blown expectations. The new construction interest is stemmed from a shortage of listings and record low mortgage rates.

Zillow New Construction Consumer Housing Trends Report 2020 shows that almost half of those who purchased a newly built home in the past two years only looked at new construction. For the 40% who would only look at new construction, the other 60% did consider purchasing an existing home.

Last year not only brought confusion with a global pandemic but also hindered materials, shipping and timelines in new construction. The report revealed that 80% of those who purchased new construction found some part of the purchase process challenging.

Demographics played a big part in the data shown of those who struggled with purchasing new construction. Close to 45% of new construction buyers were under the age of 40 and out of those 70% purchased their first home.

Fair price also was one of the top challenges. Last year 30% said that a fair price was a challenge while this year 37% express issues with fair pricing. Prices are hard to gauge because of the shortage of inventory. There are not enough sales to compare pricing.

Thirty-six percent of home buyers were concerned with the sale of their current home with the completion of their new home. Thirty-five percent admitted they are overwhelmed and doubt some of the processing of building and purchasing a new home.

Using a Realtor can help overcome these challenges. A Realtor can help with communication between the builder and buyer. Fifty-one percent of those purchasing a new construction home asked their Realtor to handle communications with the builder. A Realtor can educate buyers regarding financing and pricing and help buyers with timelines and delays. A Realtor can make purchasing a new construction home a breeze.

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Tips To Shorten Days on Market for Sellers

 Days on Market (DOM) is an important term when it comes to selling a home. DOM is defined as the number of days a home has been listed for sale basically the time from the date a home is listed for sale to the date it closed.

The lower DOM the better the housing market in that certain area. The longer a home stays up for sale, the more detrimental it can be for the listing. Higher days on market can raise a red flag to buyers who will question why it hasn’t sold yet.  Here are some tips to follow to help ensure a fast sale of your home.

Understand your local housing market

Today's market in almost every location across the country is a seller's market. It comes as no surprise that there are more buyers than sellers with such low inventory in today's housing market. When it is a seller's market, homes stay on the market for a shorter period than if it is a buyer's market. This can vary from the location in the country and even by neighborhood. Get to know your local housing market to get a better understanding of buyer demand for your house.

Check your price

Listing for the right price can be very important to your listing. If you price your home out of the local market you can potentially cause a high DOM and make it harder to sell your home. The goal is to list your home for a price that reflects an accurate and realistic value of your home. A smart move is to list your home with a licensed agent who knows the local market.

Prep your home

Staging your home is a must. You want your home to look move-in ready for buyers. A staged home will appeal more to a buyer than a home that is not staged. It is very important this day in age because many buyers are viewing your home online. Small things you can do such as a fresh coat of paint or decluttering.

Remember listing your home with a Realtor can be a smart move. A local Realtor knows the current and local market so they can help you along the way.

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Post Recession Recovery in New Home Sales

The National Association of Home Builders projected approximately 511,000 new homes would be sold during 2015, and the new home sales numbers surpassed that prediction by a small landslide bringing in 544,000 new home sales on a seasonally adjusted basis in December, 2015.  This was welcome news for home builders showing a recovery in new home sales numbers.  The increase was a 10.8% increase year-over-year, and this also heralded the best year for new home sales since 2007, just before the housing market crash.  In the South region specifically, new home sales were up 17.6% – the second highest percentage in the nation.
In addition to an increase in sales, new home inventory also increased during the month of December by 2.6% to 237,000 available homes for sale. 

However, the combination of the sales rate and the available inventory shows a trend in supply and demand that is on the rise.  The monthly supply of new home inventory fell from 5.5 months to 5.2 months with the building and selling of these new homes.
The prices of homes being sold are also encouraging.  First-time home buyers have yet to take a strong hold in the market, but second and third-time home buyers are making purchases of new homes in the $200’s – $400’s, which means that they are able to “move up” from their existing homes into their next home.  This also indicates the sale of existing homes for sale, which shows a well-rounded, moving real estate market.

Another positive trend that has emerged is the sale of pre-sold homes.  These are homes that builders are advertising before they ever break ground on the new construction.  The rendering and floorplan, as well as the lot layout may be all the new home buyer has to go on to sign a contract to buy the home, but with the reduction in available inventory, the increase in unused building permits and new home starts, the only explanation is that builders are able to sell their homes before they start building them.  This trend was prevalent during the early 2000’s and shows that the housing market seems to finally be on its way to a full recovery.

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Builder Confidence in St. Tammany Parish

For 30 years, the National Association of Home Builders (NAHB) and Wells Fargo has been measuring builder confidence based on 3 factors of new home building – current new home sales, projected new home sales, & new home buyer traffic.  The survey is called the Housing Market Index (HMI), and builders nationwide are selected and surveyed by the NAHB each month.  The result is a gauge of how confident builders are in the housing market and the future of the housing market.  Post Recession, these numbers stayed low for many months, even years, but in the past 2.5 years, builder confidence has been up.

Nowhere is that more evident in our own backyard than at Bedico Creek Preserve, a master planned, Conservation Community in Madisonville, Louisiana, in St. Tammany Parish.  Builder confidence in St. Tammany Parish is definitely up in our community.  We have had a record high amount of 18 builders all building new homes in our subdivision at one time.  Currently, we have a list of 16 qualified and quality new home builders that offer lots to be built, as well as new homes for sale in the 9 available neighborhoods within our new home community in Southeast Louisiana.

Two of our Neighborhoods focus solely on the new homes built by exclusive builders that have purchased the lots in the neighborhoods to build established floorplans to maintain an inventory of new spec homes for sale.  These two neighborhoods are Cypress Crossing and Deer Park.  Other builders have individual Homes for Sale that are located throughout the other 7 Neighborhoods.
Builder confidence nationwide in January had a score of 60.  Any score above 50 is considered optimism from new home builders.  Broken down, the builder confidence rating scored as follows: current sales conditions rose two points to 67, projected sales conditions dropped three points to 63, and current buyer traffic came in at 44.  In St. Tammany Parish, the new homes at Bedico Creek have been selling as fast as builders have been framing them.  Many of our new homes for sale are available on our website for just weeks before they are under contract.  If you are interested in living at our new home subdivision, you may want to meet with one of our 16 builders to discuss purchasing a lot in your selected Neighborhood and then building a new home for you and your family.

Contact Us Today to Make an Appointment to View Our Lots at 985-845-4200 or E-mail Info@LiveBedico.com.

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Home Builders Are Hiring in Large Numbers

Home builders are hiring according to the Job Openings and Labor Turnover Survey (JOLTS) by BLS and the National Association of Home Builder’s analysis.  Construction jobs are being offered at a rapid rate because of the increase in the production of new, inventory homes for sale.  The number of building permits that were acquired and not used rose above 4% because of the lack of labor for builders to use to build the new homes that they had planned.  The construction industry saw an 11.6% increase in available construction jobs from October to November.  This number is actually surprising for construction employment because of the slowdown of the real estate industry in the last two months of the year – November and December.  To see such an uptick in available jobs is truly an indication that the housing market has been on an upward slide and seems to be picking up speed.

In the big picture, construction jobs accounted for almost 2% of all available employment in the United States. The good news is that with the available construction jobs comes a steep increase in hiring and employment “movement.”  Employer hiring of construction labor increased 5.1% from October to November, and employees quitting to look for better employment went up by 2% as well. In a healthy construction employment market, the movement of workers in an upward salary fashion is encouraging to the overall economy as construction employees start to get higher salaries and are able to put that money back into the economy.

At Bedico Creek Preserve, a masterplanned community in St. Tammany Parish, we have 16 builders in our Conservation Community that are all building new homes for sale on lots that have been purchased in our 9 Neighborhoods available for sale.  The construction that is going on in our community is phenomenal, and in order to keep our existing homeowners in a “livable” state, we take great care to monitor jobsites, construction equipment, and trucks going in and out of our subdivision.
If you are interested in buying your own lot and hiring a builder or contractor to construct your new home, you will want to contact our Lot Specialist, Scott Waltemath, to take a tour of lots within your price range or lot size.  Contact Bedico Creek Today to Set Up Your Appointment to View Our Lots for Sale. Call 985-845-4200 or E-mail Info@LiveBedico.com.

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Reform of the Housing Finance System a Top Priority

The National Association of Home Builders (NAHB) created a white paper in 2012 called “A Comprehensive Framework for Housing Finance System Reform” which recommended utilizing both public and private sources of housing capital to keep the current federal government housing agencies. Recently NAHB has amended the 2012 white paper regarding the advancing of housing finance so there will be a secure and strong national financial market, job market and economic growth.

This is important when it comes to the housing market.  Without housing finance there would be no reason for new

developments and construction of new housing around the country. The home building industry is dependent on the housing finance system. One of the biggest hindrances mentioned in the white paper are the credit challenges home builders and home buyers are still facing that stemmed from the Great Recession.

The white paper clearly defines the importance of federal government support within the new system but limits the extent of the federal government’s duties. Conventional mortgages will be supported by private capital and a privately funded, mortgage-backed insurance fund with a federal government backstop to ensure it will be covered in case of a cataclysmic occurrence such as what happened in 2008.  Now the housing finance will be more private-sector with Fannie Mae and Freddie Mac transforming into a private-sector oriented system.

NAHB has challenged Congress and federal regulators to redefine housing finance reform because every American should have a decent place to live as stated in The Housing Act of 1949. 

Homeownership is one of the best financial decisions one could make and proves to be a stable investment. It provides solid jobs for Americans through home building and manufacturing products used in construction.  Hopefully these steps and challenges will reduce the risk that America will be hit by another Great Recession.

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