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

 

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

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

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

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

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

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

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Mile Branch Has Help Cleaning Up With New Abatement Project

 

Mile Branch is located in Covington and is one of the town's major streams that go into the Tchefuncte River. The Healthy Communities Grant has been given to Keep Covington Beautiful to help control some of the litter that ends up in and around the stream.

Keep Covington Beautiful is part of the Keep America Beautiful campaign and is designed to keep Covington clean and beautiful. The organization focuses on four major aspects which are beautification, litter prevention, recycling and education. This non-profit 501 c 3 organization strives to enhance and preserve the city of Covington with the help of its citizens. Projects include biannual planting of downtown's streetside planters, litter prevention, recycling activities and environmental education.

The $7,592 Healthy Communities Grant was provided to Keep Covington Beautiful by Keep Louisiana Beautiful. The goal of the Waterway Litter Abatement Project is to focus on litter clean-up and prevention by adding a litter boom.

The litter boom will be located in Mile Branch close to Pine View Middle School. It will catch floating debris while allowing wildlife, canoes and kayaks through by going over or under it. Once the litter is collected, the vegetative debris will be separated. Then the trash and recyclables will be separated and categorized by type, brand and age.

The Waterway Litter Abatement Project is not only funded by the Keep Covington Beautiful but is also partnered with Osprey Initiative. They want to stop the trash source before it enters in the larger local bodies of water.

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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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Summer Saw an Increase in Private Residential Spending

The strong housing market and an uptick in the US economy are encouraging homeowners to spend money. According to NAHB analysis of Census Construction Spending, there was a 0.4% increase in the month of August in private residential construction spending. This took the seasonally adjusted annual rate to $786.6 billion. The data reported shows a 24.3% increase in total private residential construction spending over a year ago.

There was a dip in spending on single-family and multifamily improvements in July but it jumped back up 2.5% in August. This might have been due to such issues with building material supply chains and labor challenges. Material prices such as lumber are also skyrocketing.

The National Association of Home Builders construction spending index saw solid growth in single-family construction and home improvement. The data also reports a rebound in new multifamily construction spending. Private nonresidential construction spending was reported at a seasonally adjusted annual rate of $455.6 billion in August.

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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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The Second Quarter of 2021 Sees a Rise in Real Estate Market Values

According to the "Flow of Funds" from the current Federal Reserve Z.1 Financial Accounts of the United States the aggregate market value of all owner-occupied real estate in the United States saw the largest increase in one quarter in the last 21 years. $33.8 trillion was reported in the first quarter of 2021 and rose by $1.1 trillion in the second quarter.

The Federal Reserve Z.1 Financial Accounts used to be known as the Flow of Funds accounts. This is a collection of financial accounts where the data is taken from them to see what funds are being used by whom. Basically, it is a way to track the net money going in and money coming out from several sectors of the US economy.

Due to lack of housing inventory, home prices are the highest we have seen in a while. Home mortgages also have jumped to $11.3 trillion which was a rise of $220 billion. Real estate assets are increasing faster than real estate liabilities. The Mortgage Bankers Association (MBA) reported as of September 12, indicates a forbearance rate of 3%.

The second quarter of 2021 saw a 12% year over year of appreciation of the market value of all real estate assets. Aggregate owners' equity also jumped to $23.6 trillion which was 68% of all household real estate, making it the highest seen since 1989.

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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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