2023 Housing Market Predictions

 There is light at the end of the tunnel hopefully for potential homebuyers. According to professionals in the industry, the trends are shooting toward more affordability.

“Americans finding ways to make payments on a roof over their heads will drive the market next year,” says Zillow chief economist Skylar Olsen. “Affordability is going to be the biggest factor in housing for 2023, but there’s room for optimism on that front if mortgage rates recede.”

Those in the industry have five housing market predictions for 2023.

1. Housing affordability will improve slightly

Those in the industry say there are signs of both the home inventory and monthly mortgage cost will stabilize. Home values should not go down, but they will not keep skyrocketing to space. In fact, national home prices are predicted to remain flat, and they may even fall in some areas.

Inflation is showing some signs of easing up and mortgage rates are starting to also dip. The mortgage rates will continue to go up and down which can cause stress to the housing market.

2. The Midwest will grow in demand

The Midwest has not seen the home price increases like many of the other regions in the US. Professionals believe that this will attract homebuyers to the Midwest. Places like Iowa, Missouri, Illinois, Kansas, and Ohio have more affordable homes.

The mortgage-to-income ratios in many Midwest cities such as St. Louis, Missouri, and Toledo, Ohio, make them the perfect place for first-time homebuyers. There are also more sellers willing to list right now in these areas which mean there is more inventory than in most regions.

3. More friends and family will buy homes together

According to Zillow, 18% of homebuyers have purchased with a friend or a relative who was not a spouse. Buying with someone else helps with your debt-to-income ratio and helps with a larger down payment. The seller’s market has pushed buyers into thinking creatively.

4. New construction buyers may have more choice — and even bargains

Builders’ sentiment is rising and it is leading to more homes being built. A rise in new construction can mean better discounts for potential home buyers. It is reported that new homes under construction are up 50% since February 2020.

5. More homeowners may leverage their home as a source of income

Rental prices are rising higher right now than home values. This means that your home could net you income by renting it. Your rental income will more than likely be higher than your mortgage payment.

In a 2021 survey of home buyers, one-third said they were purchasing just to rent out the home. The record low mortgage rates in 2020 and 2021 made it easier to purchase second homes as income producers. If you are worried about finding a renter for a home, Zillow Rental Manager is your solution. Zillow Rental Manager allows you to screen tenants and collect rent payments. You can post your rental online and on the app for free.

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5 Tips On How To Get Your Dream Home

 Buying a home is an exciting life-changing event. There are so many things to consider from the perfect location to the perfect house. Here are five factors to consider when searching for a home.

1. Take Cost of Living Into Consideration

Different areas in your state or the country may cost more or cost less to live in. These costs include housing, food, utilities, healthcare, and transportation. You need to take this into consideration because this change in funds can affect the purchase price of your new home. There are tons of ways to research the cost of living in different areas.

2. Find a Suitable Climate

Consider weather conditions that you and your family will be comfortable in. You may never get snow where you live, but getting snow all winter might not adapt well to your living situation. Someone from the northwest might not like the warmer humid longer summers in the southeast.

3. Determine What’s Within Walking Distance

Many enjoy a walkable neighborhood where you can walk to eat, live and play. There are tons of ways to research the walkability report of a community that you are interested in. Before you choose a community, walk around it yourself to get a feel for the neighborhood.

4. Know If You Want Turnkey or a Fixer-Upper

Some homebuyers are great at DIY and others are not. Many want to put their stamp on the home in more ways than just designing a nice new home. Many homeowners love an old homes charm and character while others love the newness of new construction.

5. Figure Out the Financing

This is a super important step to take when it comes to buying a home. Both a lender and a realtor can help you with what type of mortgage is best for you. Remember that you will need a big chunk of change for closing costs and a down payment.

If you are thinking of purchasing a home, choose a realtor. A realtor can help you purchase a home and find the right home that would be perfect for you.

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New Home Construction Is Beginning To Pick Back Up

 Good news for the housing market, the new home building is starting to pick back up but builders are still frustrated. This fall we have seen an uptick in new home building even with the slower demand from new home buyers. Builder sentiment is still down though due to things like the high cost of building materials.

According to the US Census Bureau, August home starts for new home construction rose 12.2% from the previous month. This is still 1% down from August 2021 just a year ago. The home starts are still trying to catch up this fall from the big drop that was seen this spring. The housing starts have been holding steady up until about a month ago when they began to increase.

The increase is a plus for the housing market due to the low inventory that has disrupted the market for the past two years. The rise in home prices and bidding wars are part of the direct outcome of this shortage. ” The latest month’s increase is implying that builders still see profit opportunities even as they concede on prices,” said Lawrence Yun, chief economist at the National Association of Realtors.

Multi-family projects have seen the biggest gain which jumped 30% from July, single-family homes only rose 3.4% from a month ago. Even with these increases, builders are still shy about being too optimistic of what the future holds. Building permits dropped 10% from the beginning of the summer and were down 14.4% from the same time last year. Surveys are still showing that builder confidence is still falling.

This fall is partly to be blamed on higher mortgage rates, supply chain problems and high home prices. “Buyer traffic is weak in many markets as more consumers remain on the sidelines due to high mortgage rates and home prices that are putting a new home purchase out of financial reach for many households,” said Jerry Konter, NAHB Chairman.

The National Association of Home Builders reports show that builder sentiment has gone down every month since 2022 and shows no signs of rising anytime soon. “Builders continue to grapple with elevated construction costs and an aggressive monetary policy from the Federal Reserve that helped push mortgage rates above 6% last week, the highest level since 2008,” according to Robert Dietz, NAHB Chief Economist.

“In this soft market, more than half of the builders in our survey reported using incentives to bolster sales, including mortgage rate buy downs, free amenities and price reductions,” said Dietz.

This is still not pushing home buyers back into the market. The study also shows that the cycle of homeowners moving up from a starter home is stalling due to the high prices and rising mortgage rates. First-time home buyers are also stalling and choosing to rent instead.

“Many potential ‘move-up’ buyers who would be likely candidates for high-priced new construction homes may also be weighing the benefits of remaining in their current home, where they likely have a mortgage rate less than half of today’s going rate – all factors that are contributing to a decline in housing mobility,’ said Kelly Mangold of RCLCO Real Estate Consulting.

The huge increase in multi-family buildings is due to the record high rents around the country. “Apartment demand has been strong, with rents rising at a historically high pace. Those consumers unable to qualify for a mortgage at higher interest rates are renewing their rental leases. Job creation is also boosting the rental demand,” stated Yun.

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Facts All Agents Should Know When It Comes to the Green House Market

 What are simple ways to make sure my new home is cared for?

-Focus on home decor that pulls double-duty
-Make sure your insurance protects your needs
-While you have a blank slate, create an organized foundation
-Learn climate-specific maintenance tips
-Add or update safety monitors
-Assess landscaping and head-off concerns
-Get to know your neighbors
-Put household check-ups on the schedule

Buying a new home is a big step in life and is both an exciting and nerve-wracking time. Many new homeowners feel very overwhelmed not with just the buying process but owning their own home and caring for it. In order to feel peace of mind, there are several things you can do to maintain your new home from the start.

1. Focus on home decor that pulls double-duty

When you start to move your belongings into your new house becomes your home. Remember to prioritize multi-functional products. For example, a nice ottoman can also act as a storage space. You want to limit the clutter from the beginning. Studies show that limiting excess items can boost your mental health. Not only can some things boost your mental health but your physical health as well. House plants are natural air purifiers. The snake plant takes indoor air and filters it by taking up to four toxins out of the air plus it changes carbon dioxide into oxygen.

2. Make sure your insurance protects your needs

When you are shopping around for home insurance, make sure that you choose a plan that fits your unique home's needs. If you have an expensive piano, you will want to make sure this is covered. There are many insurance companies where you can get a quote and a new policy online. You can also save if you bundle things such as your car and home insurance.

3. While you have a blank slate, create an organized foundation

Remember to make a plan for each item when moving all your stuff into your new home. If you are moving from another home you will be tempted to put everything in the same room it went in in the new home. Add things such as closet organizers before moving all your items into the closet, and racks in the garage.

4. Learn climate-specific maintenance tips

If you are moving from New York to Miami, it might be a good idea to study the average tips and weather for each season. In New York, you have to winterize your home, whereas in Miami you do not. You will need to look into different pest maintenance in the South.

5. Add or update safety monitors

A fire can happen anytime day or night so having a smoke and carbon monoxide detector can save a homeowner's life. These should be in every home. When installing, be sure to follow the installation guidelines. You want to make sure they are strategically placed throughout your house and always make sure to test them monthly. Another safety measure is to install a home-monitoring system or a burglar alarm.

6. Assess landscaping and head-off concerns

Tree branches hanging over your roof can be a hazard. A heavy tree branch can fall on a roof during bad weather or make a great extension for pests to enter a home. Look around your home and assess what would cause a threat to the exterior of the house or your property if a storm were to occur. The leading cause of homeowners' insurance claims is weather-related incidents.

7. Get to know your neighbors

It is always nice to know your neighbors but it can also have an advantage when it comes to safety. When you are away it is nice to have your neighbors that will keep an eye out on your place. Neighbors can also help with taking out your trash or bringing in the mail when you are out of town.

8. Put household check-ups on the schedule

Just like we need an annual check-up with the doctor, your home needs one as well. Put a household check-up on your calendar. Go around and look at what needs to be done every season. Check the landscaping, test the smoke detectors, make sure your HVAC filters are good and even take a minute to declutter.

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2022 Kitchen Trends For Your Home

 

The kitchen is the heart of the home and is a very important space. This has become even more prominent since the pandemic. Here are the 2022 kitchen trends the industry is sharing.

1. Sunny Celebration

Bright and open spaces have become very important, especially since homeowners have had to stay indoors during the stay-at-home orders. The new year brings joy and brightness. The color trends for our kitchen are nice yellows, burnt oranges that are set against cool blues and light whites. The contrast will make a room pop.

2. Two-Tone Upgrade

This look was seen at the end of 2021 and seems to be hot in 2022. Two-toned kitchens are in! Even though they contrast in color, the look is streamlined and complementary shards are used.

3. Natural Pink

Nice pastels such as pink have become a trend for the color of the 2022 kitchen. Th pastel shades give a neutral and refreshing look to your space.

4. Sands of Time

This dune-colored palette is sure to make your kitchen look serene. This design is popular for 2022 and is said to be a Minimalism and Scandinavian design combined.

5. Matte Grey

Is it grey or gray either-or, this color is a great stylish design for your kitchen. Touch-to-open cabinets in a matte grey gives a simple and sleek design.

6. Natural-Inspired Green & Oak

They say that green is a calming color. Bringing green into your kitchen is a trend you will see this year. Expect to see kitchen cabinets in colors inspired by wood-land hues such as brown and greens.

7. All that Glitters

Another trend you will see this year is a metallic accent in your kitchen. A new trend will be dark cabinets with a metallic backsplash.

8. Countertop Continued

A nice countertop in the kitchen can boost your kitchen's look. A trend to see this year is waterfall kitchen island tops. These countertops look seamless and simple in design.

9. Backsplash & Beyond

Kitchen backsplashes have been a trend for a while now. There are many to choose from and countless designs. The 2022 trend for backsplashes will be a wrap-around backsplash. This means the backsplash will go from behind the stovetop to the ceiling and down onto the floor.

10. Practical Alternatives

Wooden beams or steel poles are being incorporated into the design of the 2022 kitchen. Also, steel countertops are the rage, they are easy to clean and durable.

11. Fully Integrated Smart Kitchens

Smart homes are becoming the norm now. Smart technology allows for smaller, more conveniently shaped appliances in the kitchen.  These appliances are energy efficient and can make your life easier. A smart fridge can actually let you know when you are running low on a particular grocery item!

Remember that the kitchen is the heart of the home and can bring family and friends together. Make sure to spruce up your kitchen for the New Year.

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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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If Your Considering Refinancing Your Home Here Are Six Important Things You Need To Know

  

There are several reasons a home may want to refinance. Homeowners can use the new loans to lower their interest rates, pay off mortgages at a faster pace or turn their home equity into cash. Before choosing this path, you need to makes sure that refinancing is right for you. Here are six things to consider to help you with the answer.

1. Refinancing is a process

Refinancing typically takes 30 to 45 days from start to finish. Once you choose a lender they will need to assess your income, assets and credit history. You will need to gather all your documents such as pay stubs and bank statements. An appraisal will also be done for the new mortgage. Make sure to clean your home and make sure your landscaping is in top shape.

2. Time is of the essence

Currently, we are at historic lows and this is a perfect time to refinance. This may not always be the case. It is smart to lock in a low monthly payment as well as a low rate. Once rates go up, the savings might not be there.

3. There are many reasons to refinance

A low interest rate is a big reason to refinance, however, it is not the only reason. The term of the loan is another factor, if you’re looking for a lower monthly outlay, a long-term loan will likely work best. This is not the case if you want to repay as soon as possible because you might get locked into a higher rate. Terms are important but other reasons also include changing your loan type, cashing out your equity or removing a name (in cases such as divorce).

4. You're not tied to your existing lender

You can always go with a new lender when refinancing. Once you have paid your original mortgage off with your lender you are free from obligation to them. This gives you an opportunity to shop around for the best terms and rates.

5. You can reinvest in your existing property

Many homeowners take the cash out equity and turn around and make improvements, renovations or additions to their home. These changes not only benefit your living situation but also can add more value to your home.

6. The decision is yours alone - so make it an educated one

Everyone has different goals and personal interests in life. This is also true with home purchases and refinancing. Refinancing is a personal decision and all options should be explored. If you are thinking of refinancing, contacting a lender who can help you with all aspects of home refinancing is the first smart choice of the process.

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This Summer Saw a Gain in Single-Family Permit Gains

 

This summer saw a booming housing market. The year-over-year increase in single-family permits was 29.7% over July 2020. In July 2020 there were 525,623 single-family permits issued and in July 2021 there were 681,959 issued.

The uptick was also seen across the country in all four regions year-to-date in July 2021. The Northeast had the highest increase in single-family permits with 32.2%, followed by the south with a 30.4% increase, the West had a 29.8% and the Midwest came in the lowest bust till strong at 25.8%. AS for multifamily permits issued the West was the strongest at 29.8%, Northeast had a 25.6% increase, the South 18% and the Midwest with a 15.7%.

All 50 states and the District of Columbia had growth from July 2020 YTD and July 2021 YTD in single-family permits issued. The highest growth was in the District of Columbia with a 226.1% increase from 65 to 225. The highest 10 states made up 62.4% of the countries total.

Multifamily permits also saw an increase from 270,338 in July 2020 to 328,483 issued in July 2021 which was reported as a 21.5% increase. Thirty-eight states saw growth in multifamily permits while 12 states and the District of Columbia had a decline. New Mexico was the highest with a 295.8% increase from 427 to 1,690. Connecticut had the worst decline from 1,708 to 927 which was a 45.7% decrease. The top ten states totaled 63.2% of the multifamily permits issued.

Top Ten Metro Areas Issued Highest Number of  Single-Family Permits

Metropolitan Statistical Area	Single-family Permits: Jan (Units #YTD, NSA)
Houston-The Woodlands-Sugar Land, TX	32,134
Dallas-Fort Worth-Arlington, TX	32,017
Phoenix-Mesa-Scottsdale, AZ	22,420
Atlanta-Sandy Springs-Roswell, GA	20,352
Tampa-St. Petersburg-Clearwater, FL	1,954
Austin-Round Rock, TX	15,427
Charlotte-Concord-Gastonia, NC-SC	11,493
Orland-Kissimmee-Sanford, FL	10,314
Jacksonville, FL	9,949
Nashville-Davidson–Murfreesboro–Franklin, TN	9,993

 

 

Top Ten Metro Areas Issued Highest Number of  Multifamily Permits

 

Metropolitan Statistical Area	Multifamily Permits: Jan (Units #YTD, NSA)
New York-Newark-Jersey City, NY-NJ-PA	24.685
Dallas-Fort Worth-Arlington, TX	16,796
Austin-Round Rock, TX	16,170
Los Angeles-Long Beach-Anaheim, CA	12,565
Seattle-Tacoma-Bellevue, WA	10,573
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD	10,307
Miami-Fort Lauderdale-West Palm Beach, FL	9,090
Phoenix-Mesa-Scottsdale, AZ	9,055
Nashville-Davidson–Murfreesboro–Franklin, TN	8,412
Houston-TheWoodlands-Sugar Land, TX	8,348

 

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What Are the Costs of Home Ownership?

 

Purchasing a home is one of life's major events. Many believe it is out of reach financially because of the competitive market and high cost of homes. If you are up for the challenge, homeownership can be both personally rewarding and financially rewarding. There are several long-term financial benefits of owning a home.

There are many concerns when purchasing a home, in fact, a study showed that over half of millennial homeowners have at least one regret about purchasing their home. These regrets included not being happy with their rate, not being prepared for maintenance costs, high monthly payments and high home prices.

This should not detour you from taking on the financial responsibility of homeownership. In order for it to be a confident decision, get the aid of professionals in the industry who can help you fully understand the process and what surprising costs you may occur.

There are a lot of reasons why renting is best for some such as short-term living arrangements, others trying to improve their credit scores, and some people are just not in the financial position to take the plunge into buying a home.

If you can take the plunge then it is wise to do so. When you have to renew a lease, the rent usually increases around 3 - 5% per year. Also, the money you pay for rent goes into someone else's pocket. If you own a home, you are paying into a mortgage on a home and will obtain equity.

Remember even if there are maintenance costs, every dollar you put into your home adds value. In the long run, homeownership is usually less expensive than renting. If you are in the market for a home, contact your local agent who can help you with getting a home for your needs at a great value.

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An Uptick in Home Building Construction Times During 2020

The 2020 Survey of Construction (SOC) revealed that it took 10 days less to finish a home from authorization to completion in 2020 than in 2019. The survey also shows that the average completion time of a single-family house is around 7.8 months, which usually includes a little over a month from authorization to start and another 6.8 months to finish the construction.  Good news for the housing market as inventory has been very low the past year.

Depending on the function of the new construction single-family homes the time it takes to complete varies. For a house built for sale, it took the shortest amount of time which was 6.9 months from permits to completion. A new construction home built by owners took around 13 months and a home built for rent took around 10.6 months. New construction homes built by a hired contractor only took 9.7 months from permits to completion.

Time also varies by region. The region with the longest time tied with Middle Atlantic and New England at 11.6 months while the shortest was the South Atlantic division with an average of 7.8 months. The remaining regions include the Pacific at 10 months and East South Central at 9.1 months.

Hopefully, with the shorter construction times, there will be more inventory for homebuyers. If you are in the market for a new home, choose a Realtor to help you with the process.

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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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Tips To Follow To Design a Better Home This Year

Homeowners are changing their view on a home’s purpose and design this year due to the COVID-19 pandemic. Not only do homeowners want more space but they also want to design a space that can be used for multiple purposes. The International Builders’ Show’s Education and Exhibitor Showcase had sessions that showcased how to design a better home.

1.60 Design Ideas in 60 Minutes

During the session, those that attend will be introduced to current design ideas and strategies. Those leading will include industry-leading architects, interior designers, developers and builders. The sessions will feature how you can use these ideas and strategies to update your elevations, renew floor plans, animate streetscapes, enhance amenities and develop dynamic neighborhoods.

2. Smaller Floor Plans that Don’t Feel Small: Great Floor Plans Under 2,500 SF

This year the industry is focusing on how to design homes on a smaller footprint that does not feel cramped.

“This is exactly what I had hoped for — inspiration and ideas,” an IBSx attendee stated.

3. Designing Homes & Communities Beyond the Pandemic

The pandemic has definitely changed the way we approach building homes. There is more of a holistic approach when it comes to a design in a home.

4. Home Trends, Buyer Preferences & Most Likely Features for 2021

The National Association of Home Builder’s current research identifies how new home construction has changed since 2000. Buyer preferences and perceptions have dramatically changed in 2021. The affordability and availability in the current housing market are hot.

5. The 2021 Kitchen: Floor Plans, Finishes & Design Details That Make a Kitchen Pop

This session includes a tour of the ideal 2021 kitchen. Award-winning design leaders will walk attendees through the new 2021 kitchen floor plans, finishes and design details.

6. Small Spaces, Big Impact: Bathrooms, Entryways, Storage & Other Jewel Box & Flex Space Buyers Want

Builders are using every nook and cranny now. In this session, interior designers and architects reveal design details, plan considerations, finishes and tech needs of many overlooked and underappreciated small spaces.

To learn more about exciting on-demand options for your 2021 home check out the IBSx exhibitor directory.

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Several Tips To Follow When Selling a House in 2021

 Photo by Anete Lusina from Pexels

Both selling and buying a home can be very exciting. When it comes to the sale of your home, it can be bitter-sweet. Leaving a home behind where there are sentimental attachments can be difficult. An emotional mindset might hinder the sale of your home. Here are some tips to follow that will help navigate you through the process and hinder costly mistakes.

1. Price Your Home Right

Low inventory usually means higher pricing, but that is not always the case when it comes to a listing price. A buyer can only purchase a home based on the fair market value when it comes to obtaining a mortgage. In a nutshell, the bank will only lend what the home is worth. During the mortgage process, the lender will require an appraisal from a professional appraiser who will determine the fair market value. It is always best to stick with a Realtor who can help you price your home right.

2. Keep Your Emotions in Check

Most homeowners live in the house for quite a long period of time. During this time, they will create a lot of memories and these memories will be attached to their house.  According to the National Association of Realtors, current homeowners lives in their home for an average of ten years. It can be hard for a homeowner to separate the sentimental value of a home from fair market value. Using a Realtor can help you with the process and can negotiate without emotional attachment.

3. Stage Your Home Properly

The first impression goes a long way when a potential buyer enters a home.  A buyer will not be impressed with all of your sentimental nick-nacks or special wallpaper hung in the dining room.  A home needs to be staged with a buyer in mind.  The buyer needs to be able to come into the space and envision it as their own. A Realtor can help you stage your home before it is listed.

If you are considering selling your current home, now is a great time.  Even though it is a seller's market, it is a good idea to use a real estate professional.  A local Realtor can help you sell your home for the right price.

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Houses Are Still Affordable in 2021

Photo by cottonbro from Pexels

 Even with the home prices on the rise, houses are still very affordable. The NAHB/Wells Fargo Housing Opportunity Index (HOI) explains that the historically low mortgage rates allow buyers to purchase at a higher price.

Homebuyers who purchased between October 2020 and the end of December 2020 with a U.S. median income of $72,900 purchased 58.3% of the new and existing homes that were sold during this time. This has been the lowest since seen since the fourth quarter in 2018.

In the fourth quarter of 2020, the average mortgage rates were reported at 2.85%. This helped offset the national median home price which HOI reported rose to $320,000 in 2020's fourth quarter. The mortgage rates dropped by 20 basis points in last year's fourth quarter.

Telecommuting has become a big part of American's work habits since the onset of the pandemic. The smaller markets are beginning to see an uptick in home sales. Cumberland-Md.-W.Va was reported to be the most affordable smaller market. Those earning a median income of $57,500 were able to purchase 96.4% of the homes that were sold in the last quarter of 2020.

The country's most affordable major housing market was Lansing-East Lansing, Mich. at number one with 89.9% of homes sold to those earning a median income of $75,000. The top five of the affordable major housing markets included Harrisburg-Carlisle, Pa.; Pittsburgh, Pa.; Scranton-Wilkes-Barre-Hazleton, Pa.; and St. Louis, Mo.

“While historically low mortgage rates are helping on the affordability front, there was a significant jump in year-over-year home pricing from 2020 to 2019, as inventory remained lean due to supply chain issues and the COVID-19 pandemic,” said NAHB Chairman Chuck Fowke. “Moreover, lumber prices remain extremely high and builders anticipate that regulatory costs are likely to rise, which will put even more upward pressure on home prices.”

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Single-Family Permits Ring In the New Year Strong

 We might have had a rough 2020 with the COVID-19 pandemic and strict stay-at-home orders but the housing market showed no sign of slowing down. The National Association of Home Builders reported a great ending to 2020 for Single-Family Permits. According to the United States Census Building Permits Survey, a total of 977,863 single-family permits were issued year-to-date in the country in 2020. This is a 14.5% increase on a year-over-year basis from December 2019 which reported 854,158.

National Association of Home Builders

The chart shows the amounts for each region. The South had the strongest with a 16.9% increase, Midwest followed with a 13.1% increase, the Northwest had an 11.6% increase and the West showed a 10.5% increase for 2020. Muli-family numbers were all on the decline in all four regions. The worst was the Northeast with a -11.1% decline, followed by the South with a -9.2% decline, the West declined -8.2% and the Midwest -1.2%.

Vermont had the highest rate of growth in single-family permits from 882 in 2019 to 1,285 in 2020. This was a 45.7% increase YTD. Forty-five states all showed an increase while the District of Columbia and five states showed a decline. The top 10 states accounted for 61.5% of the total single-family permits issued in 2020.

At the local level, below are top 10 metro areas that issued the highest number of single-family permits.

Metropolitan Statistical Area	Single-family Permits: Dec (Units #YTD, NSA)
Houston-The Woodlands-Sugar Land, TX	48,208
Dallas-Fort Worth-Arlington, TX	43,884
Phoenix-Mesa-Scottsdale, AZ	31,724
Atlanta-Sandy Springs-Roswell, GA	28,057
Austin-Round Rock, TX	21,653
Charlotte-Concord-Gastonia, NC-SC	17,807
Tampa-St. Petersburg-Clearwater, FL	16,028
Orlando-Kissimmee-Sanford, FL	15,523
Nashville-Davidson-Murfreesboro-Franklin, TN	14,125
Washington-Arlington-Alexandria, DC-VA-MD-WV	13,594

For multifamily permits, below are the top 10 local areas that issued the highest number of permits:

Metropolitan Statistical Area	Multifamily Permits: Dec (Units #YTD, NSA)
New York-Newark-Jersey City, NY-NJ-PA	42,739
Houston-The Woodlands-Sugar Land, TX	20,207
Austin-Round Rock, TX	19,222
Los Angeles-Long Beach-Anaheim, CA	17,494
Dallas-Fort Worth-Arlington, TX	16,178
Phoenix-Mesa-Scottsdale, AZ	14,894
Seattle-Tacoma-Bellevue, WA	14,752
Miami-Fort Lauderdale-West Palm Beach, FL	14,034
Minneapolis-St. Paul-Bloomington, MN-WI	11,515
Nashville-Davidson–Murfreesboro–Franklin, TN	11,404

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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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Guidelines to Use When Purchasing a Home in a Seller’s Market

The housing market is hot right now as can be seen in all the statistics gathered from real estate professionals. Multiple offers and shortage of homes on the market along with low interest rates have driven the market to where it is today. This can make for a challenging situation for home buyers. Bidding wars could lead you, as a buyer, to purchase a home priced higher than the appraised value of the home, or you may even spend more than you can afford. One of the downfalls of the Recession is that homeowners ended up owing more than their home was worth – home buyers don’t want to repeat this trend.

In the market for a new single-family home but are a little apprehensive because of the low inventory, increased prices and bidding wars? Don’t be…here are some guidelines to use when purchasing a home in a seller’s market.

Recognize the Supply and Demand. If there are not many real estate listings, it can be difficult to find what you are looking for when your pickings are slim. When you do find what you are looking for, you can bet other buyers want the same thing which will only drive the price up. You do not want to purchase a home at a higher price when the price rise is determined by low inventory versus a strong economy. A strong economy can support a strong market.

Scout Out the Neighborhood. Are there any signs of new construction or have the housing starts increased? If so, this is a good sign that the local housing market is thriving. Remember, if the local economy is strong it can sustain a rising housing market. Research the market by noting the number of developed lots in the community and the amount of building permits that have been issued. The St. Tammany Parish Residential Permits office provides information regarding the amount of building permits that have been issued in the Greater New Orleans area. Speak to a Realtor in the neighborhood market in which you are interested. They can tell you if new home construction is strong in the neighborhood and how many lots are for sale in the area.

Sometimes Losing Can Be in Your Best Interest. Buyers who push to any limit to win the bidding war can overpay and loose in the long run. Go into the bid with your game shoes on…set a budget and think about getting a preapproval from a mortgage lender. When setting a budget, remember to compensate for living expenses and emergency funds. If the bidding war sets the price too high, walk away!

Do Not Let Your Guard Down. Use smart self-defense when purchasing a home. Many buyers who want to win the bid give up rights that are standard in sales contracts. Contingencies are there to protect the buyer. It is pretty risky to give these up to appease a seller into accepting your offer. Buyers can lose their deposit if they do not have a preapproved mortgage and have been denied a mortgage after they have a house under contract or the inspection comes back with costly repairs. Another way a buyer can lose cash is if an appraisal comes in low and the mortgage lender reduces the loan amount making the buyer put up the cash to compensate for the gap between the loan and purchase price. If you feel you have found the house for you, then determine if the risk of waiving any contingency clauses outweigh any hidden financial surprises you might find.

Now is still a good time to buy as mortgage rates are low. In St. Tammany Parish at Bedico Creek Preserve, we have many new homes for sale from which to choose, including new homes priced from the $230’s – $300’s in two exclusive Neighborhoods called Cypress Crossing and Deer Park. To find out more about our homes for sale, Contact our sales office at 985-845-4200 or E-mail Info@LiveBedico.com.

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The Opportunity to Learn Construction Skills for Students in St. Tammany Parish

World Changers, an entity of LifeWay Student Ministries, provides mission experiences for students looking to serve others and share the gospel.  By interacting with churches in different communities throughout the United States, students have the opportunity to learn construction skills such as sheetrock, painting, siding, roofing, windows & doors repair or replacement, interior repair / renovation projects, wheelchair ramps, fencing, landscaping, and

disaster cleanup.  They also learn leadership skills which will help them with not only future mission trips but also future education and professional opportunities. The

World Changers program began in 1990 and has expanded to 67 North American locations as well as international locations.  In 2011, World Changers  became a part of LifeWay Student Ministries which expanded the number of students involved as well as the church networking opportunities.
World Changers along with Northshore Baptist Association, Southern Baptist Association, Kent Design+Build and the St. Tammany Parish government will aid in this year’s project in St. Tammany Parish. A federal grant through the Community Development Block Grant program will be used to purchase $30,000.00 in lumber, paint, doors, windows and all other materials needed for the volunteers to get the job done.
This is the 4th year in a row that volunteers from around the country will repair and fix up homes for low and moderate income home owning families in St. Tammany Parish. Twelve homes in the community were chosen via an application process and the majority of the homeowners are disabled and/or elderly.


The 150 volunteer teens and adults from around the country will be housed at First Baptist Church in Covington. The volunteers’ week of construction work such as painting, scraping, demo and repair of these homes.

“We welcome the World Changers group back to St. Tammany. They have made such a difference in so many people’s lives over the past four years, and we cannot thank them enough,” St. Tammany Parish President Pat Brister said. “Collaborative efforts like these between public, private and faith-based organizations, make our community stronger, improve our quality of life, and benefit everyone involved.”

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