More Homes Are Going on the Market

 July 2022 saw the third consecutive month of home sale growth. This is just a sign that the housing market is starting to slow down due to rising rates.

It is reported that the number of active listings is up 30.7% from July 2021. This was part of the Monthly Housing Trends report from Realtor.com. The average rate on a 30-year fixed mortgage rate rose 6% this summer but has dipped some this fall.

“The U.S. housing market continues to move oward more evenly balanced supply and demand compared to the 2021 frenzy,” said Danielle Hale, the chief economist at Realtor.com. “Our July data shows elevated mortgage rates left many buyers tightening their budgets and sellers responding with price reductions, while home shoppers who kept searching saw more available options.”

The Federal Reserve is moving at the fastest pace seen in thirty years to tighted policy. The reason is to cool consumer demand and bring the housing market back under control. The policymakers are approving two back-to-back 75 basis point rates hikes. There will be another big increase depending on the upcoming economic data.

If you are looking to buy a home, choose a local Realtor who can help you with the rise in borrowing costs and home prices. Redfin has reported that the share of sale agreements on existing homes canceled was around 15% of the homes that went under contract. This has been the highest since we have seen pre-pandemic.

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A Change in the St. Tammany Schools’ Budget

 What will the new budget for St. Tammany public schools be for 2022-2023 school year?

The new proposed budget for the 2022-2023 school year is $488 million.

The St. Tammany public school has announced a new budget for 2022-2023 which amounts to $488 million. The larger budget is in part of the recent salary hikes, 40 new school buses and expanded mental health services for students and staff and increase funding for school security.

The salary hikes are $20.8 million on staff salaries and benefits. The parish teachers union and the school system finally agreed to the pay boost. The money will come from the district’s general operating fund. Supplementing the general fund is the district’s special revenue budget, which includes federal aid schools received to make up for losses sustained during the coronavirus pandemic.   The district has until September 2023 to spend the $114 million in federal allotment and so far have already spent $37 million.

Along with putting funds toward professional development for health providers, they will also be putting it towards starting a new positive behavior intiative. The program is called “Leader in Me.” This is a social-emotional learning initiative that seeks to help students manage their emotions and maintain relationships.

As for ramping up security, the district will spend 4% over last year which will total a school security fund of $8.9 million. This will cover salaries and benefits for security employees which include secuirty officers, law enforcment officers who work at schools and mental health profiders.

The 40 new school buses will be delivered in Decemeber of this year. With the new buses, the number of district-owned buses will double. Revenue from FEMA-administered community disaster fund grants will cover the costs. In the past, independent bus owners and operators have been used. The school district will be able to cut back on hiring indpendent buses and drivers.

“Last year we had over 300 drivers. This year, the number of bus owners/operators is between 240-250,” said Wichers.

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The National Association of Home Builders' HBGI Find Surprising Results

 

The quarterly NAHB Home Building Geography Index (HBGI), released the first of this month, shows that home building throughout the country has increased in areas with the shortest commute times.  The HBGI also shows the suburban shift in new home construction to low density, low cost markets stemming largely from the COVID-19 pandemic and first reported in the second quarter of 2020 continued into 2021.

“The first quarter HBGI indicates that home building not only continued to overperform in lower cost markets like suburbs and exurbs, but also expanded the most rapidly for single-family and multifamily construction in areas with the shortest commutes,” said NAHB Chief Economist Robert Dietz. “As workplaces increasingly adopt hybrid work models for roughly 30-40% of the American workforce, renters and buyers will have increased market power to minimize travel times and reduce both housing and transportation cost burdens.”

Nationwide the average commute is around 26 minutes. For single-family homes, this quarter construction growth rose in areas with the shortest commuting times. The index data showed a four-quarter moving average year-over-year growth rates of 22.2%.

The study discovered that for single-family home building there was an 18% decrease from the first quarter of 2021 in the market share for large metro core counties. The data found an increase from 17.2% to 17.9% in outlying counties of large or small metro areas.

“With the shift to telework brought on by the COVID-19 pandemic, housing demand continued to show the strongest gains in lower density markets in the first quarter as people have flexibility to live further out and even outside some metro areas,” said NAHB Chairman Chuck Fowke. “Given the regulatory burdens and lack of lots in higher density, higher cost markets, builders are better able to meet demand in suburban, exurban and rural areas because of the lower cost to build.”

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