The Cost of Building a Custom New Homes

Ron Lee Homes in St. Tammany Parish is one of the elite builders in Covington, Louisiana, which builds fully custom new homes with spectacular finishes.  Inside or out, these new homes are built with intense attention to detail to make sure that every minute finish is construction with as much perfection as possible.  Many of the interior amenities of custom homes built by Ron Lee Homes are imported materials or custom built materials that are installed by specialty contractors.

According to the National Association of Home Builders (NAHB), this type of new home construction actually trends with national averages in that 29.6% of the cost of construction is spent on interior finishes.  The rest of the breakdown in construction costs are as follows: framing (18.0 percent), exterior finishes (15.0 percent), major system rough-ins (13.1 percent), foundations (11.6 percent), final steps (6.8 percent), site work (5.6 percent), and other costs (0.5 percent).

When calculating the cost to build a new, single-family home, the NAHB surveyed builders with its Cost of Construction Survey and found that new homes built on approximately 1/2-acre lots with 2,802 square feet had a sales price of $468,318.  61.8% of that sales price encompassed the cost of the construction of building the new home which is only .1% higher than the costs reported in 2013.
Interestingly, the cost of the lot and the cost of finishing the lot made up a large chunk of the expense of building in the total percentages spent of the sale.  Land in St. Tammany Parish has a premium price compared to more northern and western parishes in Louisiana as well.

At the same time as this data has been released by the NAHB, another analysis of construction spending says that total private residential construction spending for September increased 1.3% over August spending and 13% year-over-year.  The reason for this increase may also be the increase in the cost of materials as well. However, single-family home permits and starts are up as well, so the money put back into the economy in the form of materials purchases as well as employment is up across the board nationwide – a good sign for the real estate market.

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Bathroom Remodeling – Available in All Project Sizes

Remodeling a guest bathroom or master bathroom can change the entire look and usage of the room.  It can also change the functionality of the bathroom itself as well as the resale value of the house  Bathroom remodeling is one of the most popular choices of renovation projects that homeowners choose.  Nationally, today’s average price to remodel a bathroom ranges from $5,000 – $15,000, and some people spend as much as $20,000 on a bathroom remodel to create an oasis or paradise right inside their own home.

Whatever price you are able or willing to pay to transform your bathroom into a fully restored new room, there are many considerations of materials and projects to consider when beginning your renovation project.  One of the big considerations is to repair and refinish vs. replace the fixtures in your bathroom.  Fixtures can include lighting fixtures, plumbing fixtures, and carpentry fixtures such as cabinets and countertops.  If you need to stay within a tight budget, you might consider replacing faucets and sinks and then stripping and refinishing cabinets vs. tearing out and replacing the entire cabinet.  If you have a more flexible budget, and you decide to tear out and replace; you may also want to consider changing the floorplan of the bathroom to expand it and add new appliances such as a massage shower or a spa bathtub.

Increasing or changing a floorplan may take more time because you are getting into structural integrity as well as plumbing and electrical new systems or reconfiguration, so you will want to make sure that you budget your money and time accordingly. If you decide to increase your floorplan, make sure you used an Experienced Contractor who can help you make great use of all of your space and also make your new bathroom remodel as inviting and useful as possible.

If you are somewhere in between “sky’s the limit” and a limited budget, you may decide to replace old tubs and showers, tear out and replace bathroom cabinetry, and create an entirely new lighting package.  Depending on the scope of the project, this may cost you somewhere in the “middle” range of an average bathroom budget, but you will be surprised how just doing those minimal “invasive” tear-outs will transform your bathroom into looking brand new.

Ron Lee Homes Remodeling has a terrific team that is excellent about making recommendations that will fit within your job scope and budget to make your bathroom remodel the perfect renovation for your life.  We listen to our clients’ needs and then try to “squeeze the budget” as much as possible to exceed your expectations.  Working with a builder also has its advantages as we know how to get “in and out” of your home as fast as possible with as minimal mess, noise, and hassle of living with a remodel while it is happening.  Contact Ron Lee Homes Remodeling today to get a quote on your project.  Call 985-626-7619 or E-mail Info@RonLeeHomes.com.

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Downsizing to Garden Homes

Ron Lee Homes in St. Tammany Parish builds many new homes for couples that are considered baby boomer “empty nesters.” What this means is that we build many garden homes that have less square footage and either minimal or no maintenance on lots that either have a landscaping contract in place or are so small and built out with their own amenities that they don’t require much yardwork at all.  Some of these decorative amenities that we build on our garden homes are private courtyards, storage buildings, detached garages, and even fountains.

Building new garden homes is an art because the floorplan requires an economy in efficiency – utilizing every square inch of a floorplan to maximize the home’s space and usability.  We have built many custom garden homes throughout the 20+ years we have been in business, so if you have an idea of a floorplan or simply need a recommendation, we can design or modify an existing floorplan to suit your home buying needs.

When downsizing from a much larger home to a smaller, less maintenance garden home, you have to know what to do with all of the “stuff” you have accumulated throughout your lifetime.  There are several avenues to take – some include being able to sell valuable pieces while others include handing down the personal items that have family value.  Whichever option you decide, you should follow the tips below when deciding on how to dispose of belongings that will not fit in your new space:

Value Your Valuables: For those items you are interested in selling, you will want to either hire an appraiser or use the Internet to find out what the “going rate” is for your pieces. An experienced appraiser that you trust will be able to give you incredible insight in a timely efficient manner while doing it yourself may take more time.

Appraiser Efficiency: If you do decide to use an appraiser, you will want to accommodate them as much as possible by getting everything ready in advance.  Many appraisers charge by the hour, so you don’t want them to have to go “digging” through your stuff to find the items you want appraised.  Make sure your items are on display (out of boxes) in good light and accessible.

Photo Documentation: Once the appraiser has given you a list to work with for a sale, you will want to take pictures of the items showing them at their best for online viewing of Internet sales.

Inherited Items: If you decide that you want to gift some of your belongings to your children immediately, then you can go ahead and disperse these items.  If there are items that are going to be handed down later, at the time of your appraisal would be a very good time to put in writing those items that are going to be given to specific family relatives.

Giveaways: If there are personal items or important items that you cannot bear to see sold, you may be able to post the pictures of these items to close friends or acquaintances to see if they would like to have them.  Giving your belongings a “good home” with someone you trust will give you much peace of mind.

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Construction Work in Mandeville, Louisiana, in St. Tammany

New jobs in the form of construction work and employee hiring is happening in Mandeville, Louisiana, in St. Tammany Parish.  Florida Marine, LLC, currently located off of the west side service road between Fairway (Judge Tanner) Drive and Hwy. 22, is doubling its commercial construction space from 27,500 square feet to 55,000 square feet and is expected to cost approximately $7.2 million.  The move will bring in 40 new Florida Marine jobs and approximately 180 jobs in construction including contractors and sub-contractors.

As part of the nonprofit business retention program offered by the St. Tammany Parish Economic Development Foundation, Florida Marine has focused on retention and expansion of its business and services over the past 14 years in Mandeville, Louisiana.  It purchased the present office building which it is now expanding in 2004.

“We have been very happy in St. Tammany Parish and are pleased to be expanding our offices,” said Dennis A. Pasentine, owner and CEO of Florida Marine.

In addition to the much needed commercial work space that the expansion of new construction will offer, the new campus-style building will also have an outdoor kitchen and courtyard for employee and customer events.  In case of inclement weather, the buildings will be fitted and retrofitted to include backup generators to restore power. The project has been designed by Greenleaf Architects and is being constructed by Kent Design Build.

“We congratulate Florida Marine on their expansion,” Parish President Pat Brister said. “The maritime industry is woven into the fabric of our community, and this growth will provide job opportunities and positive economic impact.”

In addition to the commercial construction of office space in Mandeville, LA, in St. Tammany Parish, Florida Marine is also expanding its shipyard in Harvey.  This West Bank expansion will create 200 additional jobs as well.

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New Home Buyers Have More Selection in New Homes

Even though the housing market has been making incredible strides in its recovery since its low in 2008, one of the major obstacles that has been holding the sale of real estate back is the lack of supply for the growing demand of home buyers.  New home buyers especially have been stymied by a lack of inventory from local builders.  Builders themselves have been frustrated by the tightened funding requirements for construction loans from banks and lenders, so there is been a “stalemate” of sorts going on in the new home industry.

However, good news is on the horizon for real estate because single-family home starts have been on the rise and holding steady over most of the months of 2015.  Single-family home starts remained steady from August to September with 740,000 starts nationwide for both months.  Overall, housing starts (including multi-family housing) increased by 6.5% and reached the 1.2 million mark – the highest its been since October, 2007.

From a yearly perspective, quarter-over-quarter, single-family home starts are up 5.7% 3rd quarter from second quarter with a total of 746,000 home starts.  The numbers year-over-year show that single-family home starts are up 11% compared to 2014.

Another strong sign of new home real estate recovering is the number of housing permits for single-family home starts.  The number of permits for single-family homes went up 9.4% year-over-year and also remained unchanged compared to the previous month of August from September, 2015. Trends also show that money of the new home purchases are coming from “contingency sales” where a home buyer has a house to sell and wants to build or buy new which is excellent news for new home builders.

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Interest Rates Still Low for New Home Buyers

Real estate professionals have expressed concerns as to the state of the interest rate in today’s housing market because there are rumors that the interest rate is about to be raised by the Federal Reserve (The Fed).  Because of these fears, many homeowners have hurried up to refinance their homes with these historically low interest rates while home buyers have been “coming off the fence” more rapidly than normal to buy a new home.  These worries can be set aside for now as The Fed has decided not to raise interest rates during their last meeting citing a weak global economy, low inflation, and unstable financial markets.
However, there are some aspects to consider when deciding whether or not to buy a new home as soon as possible before interest rates “go back up.”  The first point is that even if interest rates do go up, they are not forecast to go up by much upon raising.  The increase in the interest rate will STILL be lower than any record of interest rate lows in the past.  This means that you will still be able to maximize the amount of money you use to buy your new home with lower interest rates.

The second aspect to consider is that the increase in the interest rate means that the U.S. economy and job market are getting better which means more and better jobs for home buyers interested in buying a home. Waiting until you have the right job and the financial ability to buy a home is a better choice than “squeaking by” to be able to buy a home at a lower interest rate with no stability in your financial future.

Finally, when The Fed does raise interest rates, this is good for investors and employees with retirement accounts because interest rates for these types of savings and money making accounts go up as The Fed raises the interest rate.

Even though The Fed’s decision is to not raise interest rates at this time, interest rates are expected to go up as soon as the end of 2015.  Whether they go up or not, now is the time to take advantage of the incredible financing offers to buy your home while interest rates are low, credit restrictions are easing, and down payment assistance has once more been established by the Department of Housing and Urban Development.

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Newly Built Home Sales Rose 5.4% From June

Just like summer in Louisiana is hot in July, the housing market nationwide heated up this summer with new home sales activity rising to 507,000 homes sold. The Census Bureau and HUD reported that newly built home sales rose 5.4% from June and 25.8% from July of last year. New home inventories were reported at 218,000 in July which is the highest level that has been seen in over five years.
This increase was also seen in the private residential construction spending where the highest amount spent was at an annual rate of $387 billion in July. This increase in spending verifies that the construction industry is continuing to experience strong economic growth. Single family homes have pushed construction expansion 15.8% on a year-over-year basis and multifamily new home construction spending is 21.2% higher than it was reported a year ago as well.

Developers, new home builders, and custom home builders are not the only ones that are seeing a positive growth, the National Association of Realtors (NAR) reports increase in existing home sales. Existing home sales increased in July 0.5% from June and 7.4% from July of last year. Completed transactions were reported at the highest since February 2007, which was the beginning of the downhill slide of the Recession.

Home buyer confidence stems from the strengthening economy overall with increased spending. The

Bureau of Economic Analysis reports that the Gross Domestic Product (GDP) grew to a strong 3.7% rate. These findings were based on several factors including investment, faster growth for consumption, government spending and trade components.

Now is the time for buyers to tap into the housing market. Sales are solid which makes the real estate market a stable vested interest. New home prices are continuing to strengthen making real estate a great investment. Interest rates continue to remain at record lows with the reluctance of the Fed to increase interest rates. The Department of Housing and Urban Development have rolled out new loan products which require a much lower down payment on FHA and some conventional mortgages. Best of all, there is a spectacular new home builder in St. Tammany Parish which builds new, custom home exactly to your specifications and design. These new homes are designed and built to withstand the test of time and elements with energy efficient green building techniques as well as the best, most quality components to ensure the strongest and best built new home in St. Tammany Parish. For More Information, Call 985-626-7619 or E-mail Info@RonLeeHomes.com.

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Employment is Rising and Single-Family Homes Are Under Construction

New jobs reports and the falling unemployment rate have brought about a positive economic outlook of many Americans in the U.S. The employment growth is a big reason for both the real estate and housing industries’ latest boom both with new construction homes for sale as well as resale homes for sale. The strong job reports have encouraged many to believe there is not a “double dip” recession looming so many are relieved and feel confident in purchasing a new home. Everything from apartment buildings (multi-family homes) to single-family homes are under construction everywhere you turn in the country.

The rise in household formation by millenials as well college grads that have finally been able to get a job has led to new houses being built which has attracted workers in the construction industry. Employment in the field of construction reflects an average of 20% of the jobs that have been recently created. The American Association of General Contractors showed 80% of construction firms planned to hire this year. JOLTS survey showed an increase of 36% in the number of construction job openings year-over-year.

Mark Vintner, senior economist at Wells Fargo Securities says, “Home building will be one of the economy’s largest upside surprises in 2015.”

This is very good news for those looking for employment in the construction industry. Contractors are desperately seeking those who are skilled in all areas of construction which include part time and full time employees as well as sub-contractors. Vintner points out that overall, nationwide, there is a shortage of skilled construction workers. The American Association of General Contractors also reports that 87% of construction firms are having difficulty filling positions. Moody’s Analytics Adam Ozimek believes the shortage is due to lack of wage growth in the construction industry. However with the decline in unemployment, the job market will soon become an “employees’ market” instead of a employers’ market, which should drive up competitive hourly and salary wages. For the construction industry, this should put many out-of-work carpenters, builders, plumbers, electricians, and day laborers back to work with a healthy salary. Ron Lee Homes has been following this construction employment trend in St. Tammany Parish by expanding its services to include remodeling as well as custom home construction. To build your new, custom home today, Contact Us at 985-626-7619 or E-mail Info@RonLeeHomes.com.

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Custom Home Builders in St. Tammany Parish

What distinguishes Ron Lee Homes from other custom home builders in St. Tammany Parish is that Ron Lee is personally involved in almost all of the custom home projects that are completed in the cities of Mandeville, Madisonville, Covington, and Abita Springs. New custom homes require an almost daily review and critique, so Ron Lee’s hands-on approach to building new homes on the Northshore is the key to his success in building custom homes. With amazingly unique interior and exterior amenities, energy efficient green building techniques, and top-of-the-line building materials, the new, custom homes built by Ron Lee Homes stand above the competition in design as well as durability.

One of the main aspects of a home built by Ron Lee is the foundation. Ron Lee takes great care with each and every foundation of his new homes because of the shifting and sometimes unreliable soil in Southeast Louisiana. These foundations have a step-by-step meticulous process that requires attention to detail and experienced sub-contractors that have worked with Ron Lee Homes for many years. Relying on sub-contractors is a huge part of being a successful St. Tammany Parish builder, and with 24 years building in St. Tammany Parish, Ron Lee has met and vetted many different types of subs. With Ron Lee personally overseeing the laying of the foundation, the framing, roofing, siding, and interior construction of your new home, you can count on the construction work to be quality as well as critiqued and corrected as the new home is put together.

Another benefit of having such a personally vested builder is that you will get to have one-on-one contact with your builder. Ron Lee answers his phone, e-mails, and requests as timely as he can. Also, he is backed up by a team of people at his home building company who have years of experience in the real estate industry as well as the St. Tammany Parish area. From the many testimonials from our satisfied homeowners, most of our new home buyers have been pleasantly surprised by the level of professionalism, communication, and follow up provided by Ron Lee Homes.

If you are not sure where to begin your new home building experience, Contact Ron Lee Homes today for a custom home consultation to learn more about the new home design and building process. Call 985-626-7619 or E-mail Info@RonLeeHomes.com.

Traditional Neighborhood Development (TND) Port Marigny in Mandeville

They say that “imitation is the sincerest form of flattery” and that is the plan Steve Oubre, Project Designer at Architects Southwest, says about the lakefront traditional neighborhood development (TND) Port Marigny on the Mandeville lakefront. Port Marginy will be patterned after the “historic character” of Old Mandeville. The 78-acre project site is located on the former Pre-Stressed Concrete

Products plant just east of Lake Pontchartrain Causeway.

The waterfront development’s updated figures and renderings were presented to the Mandeville Planning and Zoning Commission July 28, 2015, and the project will only be allowed to proceed with the City Council’s approval. The City Council will hold several more meetings to allow Mandeville’s resident’s opinions to be heard before voting their final approval.
Mandeville’s residents, who attended the standing-room-only, meeting July 28, 2015, were able to ask important questions about the project’s density and potential traffic problems the new development could create. Many believe the developers of Port Marigny plan to build too many housing units which will cause traffic congestion in the area. The proposed development plans include building 429 “New Urbanism” new

homes for sale which include apartments (multi-family housing), condominiums and single-family homes on large home sites. In addition to the new construction housing units there will also be 60,000 square feet of commercial space, a 150-slip marina, a 120-room boutique hotel, a park and a town center that would feature a statue of city founder Bernard de Marigny. Traffic Consultant Rich Hall will address these concerns and has already taken preliminary traffic counts. He plans to take additional counts once school begins in August.

Richard Muller’s, attorney for Marcus Pittman owner of the property which the abandoned concrete plant sits on and who is providing guidance for the proposed project, described the focus of the project is to “facilitate the development of a vibrant, walkable, mixed-use, waterfront development that provides strong fiscal benefits for the city.” Residents who will own a new construction unit in the residential community will have narrow setbacks, large lots, sidewalks, service alleys with back access garages, streets no longer than 650 feet, and the multi-family homes will be four stories high including commercial space on the first floor.

Oubre is confident in the project. Oubre stated that his goal was to “build to the historic character” of neighboring Old Mandeville. “Old Mandeville was done right,” Oubre said. “We’re trying to replicate it.”

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Housing Market is Still on the Rise

The housing market is still on the rise and continues to improve according to the findings by the NAHB/First American Leading Markets Index (LMI).  The LMI was developed to record and monitor the recovery of select markets throughout the United States due to the Recession. There are three components (average permit, price and employment levels) that are scored in more than 360 metro areas over a 12 month period.  The scores for these components are then divided by each of their annual averages over the last period of normal growth.  The three component averages are then averaged together giving the overall score for each market.  For single-family permits and new home prices, 2000-2003 is used as the last normal period, and for employment, 2007 is used for the last normal period.

What all of this means in a nutshell is that major metro cities throughout the United States are being monitored for an increase or decrease in real estate activity following the Recession.  The percentages are calculated each month by the National Association of Home Builders and distributed amongst the public and real estate markets so that investors have an idea of how the real estate recovery is progressing nationwide.

Baton Rouge, Louisiana is one of the top recovering cities on the list of major metros on the LMI and is doing 47 percent better than the last findings recorded for the normal market level.  Southeast Louisiana shows an 85 to 92 percent recovery to the normal market level.  In fact, 75 markets out of the 360 metro areas beat their last normal levels of economic and housing activity during the second quarter this year which showed a year-over-year net gain of 13 markets (66% of markets have shown an improvement year over year).  This quarter’s LMI shows that more than half the markets nationwide have reached a 90% or above their normal market level. We are almost back to 100% of normal economic and housing activity that we had before the recession.

“The markets are gradually improving and economic and job growth continue to strengthen, which bodes well for housing for the remainder of the year,” said NAHB Chairman Tom Woods.

Out of the three components of the LMI, housing prices have shown the strongest recovery with 345 markets at the same or above their last normal level. Behind that is the economic level where 64 markets are at their normal market level or have exceeded their normal market level. Housing permit level is lagging behind with only 26 markets at normal or above normal market level.

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Strong Custom Home Building Numbers in Louisiana

Custom home building is going strong in Louisiana and at Ron Lee Homes in West St. Tammany Parish. The 2014 Census Bureau’s Survey of Construction (SOC) reports that 34 percent of the homes built in the South Central Region were custom built.  This means the home was built for you the owner, by a custom home builder, who will either build on your lot or build on a lot owned or purchased by the builder in the area of your choice in St. Tammany Parish. The other 66 percent were spec homes (speculatively-built homes) meaning they were houses built for sale or houses finished on a builders’ lot, ready for a home buyer to purchase. The house was sold to the potential buyer at one total sales price instead of selling the house and selling the land separately.

The SOC defines new home starts into several different categories which include houses built for sale, houses built by contractors, homes built by owners and for rent houses.  Not only does the SOC report if the houses are built for sale, by contractors, owners or for rent, they also report if the new home starts are being built in a community development with a homeowner’s association (HOA).  The HOA is created while the development is being built, and then ownership is turned over to a homeowner board which enforces private deed restrictions and maintains common areas.  In 2014 it is reported that 58 percent of single-family homes were built in a community with a homeowner’s association.
Why the uptick in the custom home market?  Many speculate that the limited builders’ means to borrow money via Acquisition Development and Construction (AD&C) loans have put a damper on their ability to purchase land, build a home on the land and sell the house to a potential buyer. Borrower restrictions are not new, so custom home building is the logical route to take for any builder that has vast experience and “comfort” in being able to build custom.  It was estimated that in 2014 one in four new home starts were custom homes. The custom home market is still on the rise and has reached levels above 2012-2013 but is still below the 2008-2011 levels.

At Ron Lee Homes, we build custom homes in many different subdivisions in the area including Terra Bella Village, Bedico Creek Preserve, Maison du Lac, and many more.  These communities also have established homeowners associations as well, and have lots available to buy and build a new custom home.  If you are interested in designing and having the home of your dreams built in St. Tammany Parish, Contact Ron Lee Homes at 985-626-7619 or e-mail Info@RonLeeHomes.com.

Conventional Mortgages for New Homes Increase for the 5th Month in a Row

When the bottom dropped out of the real estate market, the biggest indicator that the economy was in trouble was that home owners and new home buyers found themselves paying more for their home than what it was worth.  One of the biggest indicators that the housing economy has been in recovery has been the increase in house pricing regionally nationwide.  These home prices went up steadily during the end of 2013 and 2014, so much so, that investors were concerned that they would cause a housing bubble and throw the entire economy back into a Recession.  Once again, though, supply and demand allowed for free market commerce to dictate the real estate market, and prices started to stabilize in the 1st quarter of 2015.

For the 5th month in a row, conventional mortgages for new homes have increased to an all-time high of $352,500 in June, and this is also a record for the average loan amount which has not yet so far been above $350,000 after the Recession.  In addition to the average amount of a loan going up, home prices also increased in June to $462,100 from $447,600 which is a 3% increase.  Also a record-breaking statistic, this is the first time that new home prices have been above $460,000 since the Recession as well.

Even though the average initial fees and charges on loans decreased by 3 basis points to 1.08%, the effetive interest rate on conventional mortgages went up to 3.98%.  Home buyers and people interested in refinancing their homes have been “spoiled” with the phenomenally low interest rates over the past 5 years, but an average overall interest rate in the 4% range is still a historically low rate and will probably not be seen again for quite some time.  The Fed was set to increase interest rates in September, but this is not a guaranteed move and has been in limbo for over a year.  Interest rates are still low, credit is easing allowing higher borrowing amounts for conventional mortgages, and Ron Lee Homes is building new, custom homes in St. Tammany Parish for interested home buyers.  Contact Us today to help you start building the home of your dreams.  Call 985-626-7619 or e-mail Info@RonLeeHomes.com.

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Permits, Starts, and Confidence in the Building Industry

Despite the frustration of finding lots on which to build and labor (employees and sub-contractors) to use to build new, single-family homes, the housing market is on an upward trend.  An increase in permits, starts, and confidence in the building industry by builders was reported by the National Association of Home Builders for the month of June, 2015.  New home permits rose in all 4 regions of the United States from the Northeast, Midwest, South, and West at 2.8%, 2.9%, 10.4% and 9.5% respectively.  The South gained a huge percentage jump in new home housing permits during June, and overall, single-family home permits rose .9% to 687,000 compared to previous months.

New home starts went up mostly for multi-family  building which went up by a huge 9.8% to over 1 million total units – 1.174 million to be exact.  Overall multifamily construction was up 29.4% for a total of 489,000 units.

“The multifamily gains this month are encouraging and show that the millennial generation continues to be drawn to the rental market,” said NAHB Chairman Tom Woods, a home builder from Blue Springs, MO.

Builder confidence is also the highest it’s been since November, 2005.  While any number above 50 means that builders are thinking positively about sales conditions, sales expectations for the next 6 months, and buyer traffic; builder confidence rose in June to 60 averaged out over all three survey results.
“The fact that builder confidence has returned to levels not seen since 2005 shows that housing continues to improve at a steady pace,” said NAHB Chairman Tom Woods. “As we head into the second half of 2015, we should expect a continued recovery of the housing market.”
Buyers are actually seeing a little bit of a seller’s market because of the lack of inventory of new homes for sale.  A dearth of lots and a shortage of construction labor has contributed to a shrinking inventory of supply for homes to buy nationwide.  However, the strong numbers for new home permits in the Southern and Midwest regions signal that new home buyers will soon have homes from which to choose.  If you would like to build your home instead of buying an inventory home, Contact Ron Lee Homes at 985-626-7619 or e-mail Info@RonLeeHomes.com.

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10 Reasons to Buy a New Home

With the house market in full recovery, and home inventory tightening up nationwide, you as a home buyer have a very significant choice to make when deciding the type of home that you would like to buy.  Location is always important, and price is normally a deciding factor, but there is one other huge consideration you should make when purchasing your home – choosing to buy a new home vs. buying an existing home.  Below are 10 reasons to buy a new home vs. an existing one.

1. Tax Benefits:  Each month as a renter, you spend about the same amount of money as a mortgage and get none of the benefits while your landlord pockets your rent, increases equity, and writes of property tax costs.  As an owner of a new home, you will receive all of the tax benefits of owning your own home PLUS, if you have savings from a retirement IRA account, you can pull out $10,000 from this account – tax free – as long as the money is used for a down payment on your home, and you are a first time home buyer.

2. New Home Warranty: Buying a new home vs. buying an existing home gets you brand new everything – windows, doors, paint job, carpet, appliances, and all of your lighting and trim.  When you buy an existing home, you may have the unwanted chore of constantly replacing worn out parts of your home.  Also, your new home comes with a 1, 2, 5 warranty per Louisiana law which protects the home in its entirety the 1st year, all major structural components for 2 years, and framing and infrastructure for 5 years.

3. Repairs and Maintenance: In addition to replacing components, existing homes come built-in with a honey-do list.  You could be repainting the interior and exterior, upgrading / renovating the kitchen cabinets and countertops, and replacing door knobs, hinges, and other pieces and parts of the home.  With a new home, you don’t even have to worry about things falling apart for a few years at least if you have purchased a quality-built home in St. Tammany Parish.

4. Energy Efficiency: Green building has become standard for many home builders in St. Tammany Parish, and Ron Lee Homes is a Certified Green Builder by the National Association of Home Builders.  By installing all green building features, you will not only get the benefit of owning a brand new home, but you will save money in the long run with lower energy bill as well as the environmental satisfaction of reducing greenhouse gases.  With previously owned homes, especially homes older than 1980, you will be dealing with less efficient home openings, insulation, and HVAC systems which will increase the cost of heating and cooling your home.

5. Smarter, Safer, Well-Built: New systems installed in new homes now come with smarter and better working fire alarms, security systems, and smoke detectors.  There is even certain types of primer boards, plywood, and sheetrock that is fire resistant to withstand a fire event.

6. Credit and Financing: Buying a new home allows your mortgage company, lender, or banker more options in choosing the right loan for you.  Especially if you are investing wisely, your home may appraise for a higher amount allowing more equity and better interest rates.

7. Low Interest Rates: With all of the worry that the Fed is about to increase interest rates, rates are historically low and are still at record-breaking lows compared to any previous year of buying a new home.  Because you get to write the interest off on your taxes, it is a win-win situation when buying a new home.

8. Holding Its Value: Because you are buying new instead of previously owned, your home is in better shape and will last longer as long as you chose the right builder.  No matter how wonderful a previously owned home is, it will still “fall apart” eventually faster than a new home because it is older and more worn out.

9. Avoiding Health Risks: With the new information about lead paint and its effects as well as asbestos, many people are very aware that older construction can contain these hazards.  As long as you have hired a quality builder to build your new home, you will never have to worry about hazardous construction materials that could drastically affect your health.

10. Fun Choices: When building a new home, you get to put part of your personality into it by making selections such as cabinetry, countertops, paint, siding, flooring and much more.  In addition to being a part of building your own home, you can take comfort in knowing that you are making the biggest financial investment of your life – one that will give you equity and security for the future.
If you are ready to build your new home in St. Tammany Parish, Contact Ron Lee Homes, a custom home builder, at 985-626-7619 or E-mail Info@RonLeeHomes.com.

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New Home Sales are Still Going Strong

Even though statistics show a lull in new home building permits and starts, new home sales are still going strong. Both May and June have seen a positive outcome for the housing market and new home buyers.

U.S. Department of Housing and Urban Development and the Commerce Department reported that nationwide housing dropped 11.1% in May, but building permits rose 11.8% (the highest it has been since August 2007).  This almost equal fall and rise was predicted by economists because of lack of inventory in the housing market. Current new home starts are down, but building permits are up because builders are getting geared up for a big push because of this lack of inventory.  It has dropped to around a 4-month supply, the lowest it’s been since the Recession. “The uptick in permits shows our builders are optimistic that more consumers are returning to the housing market,” said NAHB Chairman Tom Woods.

June’s readings are the highest since September 2014. NAHB/Wells Fargo Housing Market Index (HMI) reported that single-family homes rose 5 points to a level of 59 (a score of over 50 indicates a good housing market).

“The HMI indices measuring current and future sales expectations are at their highest levels since the last quarter of 2005, indicating a growing optimism among builders that housing will continue to strengthen in the months ahead,” said NAHB Chief Economist David Crowe.
 
The National Builders Association of Home Builders (NAHB) developed the NAHB/Wells Fargo Housing Market Index (HMI) by taking the monthly survey they have been conducting for 30 years and estimate the builder’s insight of the current housing market.  The survey asks the builder to rate the sales expectations and current single -family home sales for the next 6 months as good fair or poor, and the traffic of prospective buyers as high to very high, average or low to very low.  They take these scores and calculate the index.

“Builders are reporting more serious and committed buyers at their job sites and this is reflected in recent government data showing that new-home sales and single-family construction are gaining momentum,” said NAHB Chairman Tom Woods. This is great news for those who are looking to buy a newly built home and for builders who are in the business of new home building or custom home building. This coupled with an increase in pending home sales, new home sales and mortgage applications make it a great time to purchase a new home.

In St. Tammany Parish, in Louisiana, if you are interested in building a new home for your family in Mandeville, Madisonville, Covington, or Abita Springs, Contact Ron Lee Homes to begin discussing designing your floorplan to either build on your lot or buy a lot in an existing subdivision.  At Ron Lee Homes, we strive to make your new, custom home building dreams reality!  Call 985-626-7619 or E-mail Info@RonLeeHomes.com.


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Unfilled Construction Jobs Are on the Rise in 2015

Good news for those who are looking for a job in the construction industry, unfilled construction jobs are on the rise in 2015, making the construction labor market a great place to start looking if you are unemployed.  Typically jobs in the construction field usually decline from March to April, but this year, the open positions in March were the highest since July 2007, and in April they were the third highest since the Recession. Mark Vintner, senior economist at Wells Fargo Securities comments that “home building will be one of the economy’s largest upside surprises in 2015.”

According to the BLS (Bureau of Labor Statistics) survey, “employment in home building/remodeling stands at 2.453 million, broken down as 696,000 builders and 1.757 million residential specialty trade contractors.” To sum it up builders and remodelers added 149,000 jobs on a net basis. Many experts believe that housing and construction jobs are the fastest jobs to bounce back after a recession because of expansion.  In fact, the constructions industry was responsible for 20% of employment created in April 2015.

The unemployment rate is not only falling in the residential industry but in the real estate industry as well which will boost the national housing market. According to the National Association of Realtors, “Pending Home Sales Index, based on contracts signed last month, increased 0.9 percent to 112.6, the highest level since April 2006.”

This is still a great time to purchase a new home because all fears of another recession are pacified while they are still not strong enough to cause the Fed to raise interest rates sooner than September 2015.  Household formation is going strong, and Americans are ready to become homeowners which is paving the way to the construction of new homes both single-family and multifamily. We can finally see the light at the end of the tunnel in the housing industry job market.

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Remodels & Renovations - A New Service Offered by Ron Lee Homes

Ron Lee Homes, a new home and custom home builder in St. Tammany Parish is now offering renovations, remodeling, and additions as a new division of the company.  Cheryl Murphy, formally of Floor to Ceiling in Mandeville, Louisiana, heads the division as the expert consultant and project manager for all renovation and remodeling projects.  Ron Lee Homes Remodeling will focus mainly on Kitchen, Bath, Master Bedroom / Bathroom, Outdoor Spaces, and Additions.  Also, Interior Design Services are offered either separate from or in conjunction with a completed remodeling project.

Kitchens
The kitchen is the main area in which a family or house members congregate to prepare food and also socialize either on a day-to-day basis or because of a family gathering or social event.  The kitchen has been called the “heart of the home” because of its central purpose and location.  Many homes built in the Greater New Orleans area are 10 – 50 years old and therefore have outdated appliances, cabinetry, countertops, and fixtures.  Ron Lee Homes Remodeling will help you every step of the way in deciding the best, most efficient, and cost effective way to enhance your kitchen’s appearance with a complete kitchen remodel.
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Bathrooms
As one of the most important functioning parts of the home, the bathroom is essential to every day life and gets a lot of use.  If you own an older home, your bathroom fixtures and even plumbing may be very outdated or not fully operational.  Or, you may be stuck with an old color scheme, wallpaper, or certain colored sink or bathtub that doesn’t suit your creative palette anymore.  Whatever your reason, Ron Lee Homes Remodeling can take your old, outdated-looking bathroom and renovate it to be a sparkling new and modern looking room of your home of which you can be proud.
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Master Bedroom / Bathroom
It might have been some time ago when you moved into your new home.  At that time, you may have had to make do with your existing furniture and furnishings, so your Master Bedroom was perfect for your life “just starting out.”  However, if you have been successful in life and business, there may be a need to upgrade your home’s appearance and space by remodeling your Master Bedroom and Bathroom.  With Ron Lee Homes Remodeling, we can make suggestions on how you could be able to “steal” space from one to enhance the other.  Completely renovating your master suite to make it your own private “getaway” inside your home is just one of the services offered by Cheryl Murphy.  Upon completion, she can also help with Interior Decorating to make your suite not only classically beautiful but open and spacious as well.
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Outdoor Spaces
Have you ever dreamed of having the perfect backyard – an outdoor environment that was multi-layered with the perfect mixture of nature and modern conveniences?  Ron Lee Home Remodeling has extensively built new, CUSTOM homes with amazing outdoor spaces which include outdoor fireplaces, fully bricked patios, covered patios with ceiling fans and beadboard ceilings, custom sound systems and electrical systems for outdoor stereos and flat screened televisions, custom outdoor kitchens with built-in gas grills, and much more!  If you are interested in creating “paradise” in your own backyard, look no further than Ron Lee Homes Remodeling.
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Additions
When initially buying or building your dream home, you may have chosen your home specifically for its location – on or near the water, located in historic Mandeville or Covington, situated on acreage, or your other family members live nearby.  For these and many other reasons, you may not want to move from the area in which you live, but you are “outgrowing” your home and need more room.  Ron Lee Homes Remodeling can help you add additional square footage to your home, whether you are “going out the back,” adding an entire second floor, putting in a mother-in-law suite, or adding an apartment over your garage, we can guide you through each step of the process to get you the space that you need.
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Design Features and Trends Are Being Used by Innovative Builders

Luckily the housing market is picking up along with home construction. Now is a great time to become a new homeowner. As a new home buyer, you will want to look for these five up and coming latest trends. These design features and trends are being used by innovative builders, remodelers and architects in new home construction. The trends which were seen at the 2015 St. Tammany Parish Parade of Homes and which will also be seen at the New Orleans Parade of Homes are based on National Association of Home Builders “Best in American Living Awards.”

Do not fear!  If you are already a homeowner, this doesn’t mean you are left out of the loop. Just because these five design trends are used by the professionals in new construction, doesn’t mean you cannot incorporate them into your own home with a build-on addition or remodel.
First on the list is a white-on-white kitchens.  Whether you have a traditional or modern style home, this trend is popular in both.  Think white on white on white.  Designers are taking white cabinets, paring them with white countertops with a white backsplash and finishing it off with all white trim.  Ron Lee Homes incorporates a variety of materials (stone, ceramic tile, glass, and granite) to incorporate this look in kitchens and master baths, specifically.

Second is a double-island kitchen.  Once again it doesn’t matter what style home you live in, you are seeing more than one island in a kitchen.  Many times one island is used for cooking and preparing the food while the other is used for serving and dining. The second island can serve a dual function as a home work or hobby space.  In new homes built by St. Tammany Parish builder, Ron Lee Homes, you will see many of our kitchens use a double island and breakfast bar.  The island usually includes a sink as well as a dishwasher or warming oven / drawer.  The breakfast bar is attached to the island and normally flows into the family room – a perfect place for families to gather and socialize.

Third design is centered bathtubs and walk in showers.  If you visit a spa, this is often what is seen in these well designed relaxing atmospheres. Professionals are now taking the trend into the home.  Tubs are becoming a central focal piece and walk in showers are taking the place of a shower stall. Ron Lee Homes uses oversized showers and custom, hand-laid ceramic tile or stone.  Our home buyers request specific shower heads and sprays as well as seating areas inside these large shower spaces.  Also, glass doors or even “windows” are also popular with our new custom home designs.

Fourth is old world style meets modern contemporary. This is done by taking natural elements mixed with contemporary materials which soften the hard modern design.  Wood, steel and glass are popular materials being used in this trend.  In new custom homes, cypress beams and unfinished cypress fireplace mantles have been very popular in a few of our newly built custom homes.  Also, we enjoy mixing and matching materials on the fireplace surround, fireplace mantle, and built-in bookshelves.
Last is indoor-outdoor living. This trend is starting to be seen no matter what climate you live in.  Home buyers love to see a design that incorporates the outside view.  Indoor-outdoor transitional spaces can be easily added by using screens and removable/foldable walls.  In a few of the recent new homes built by Ron Lee Homes in St. Tammany Parish, we have incorporated screened-in porches that are “livable” – complete with a television, that open to outdoor patios with outdoor cooking areas.  We have even built outdoor kitchens inside of screened in porches upon request.

Ron Lee Homes takes pride in constantly staying on the cutting edge of residential building design and remodeling.  If you are interested in seeing a new, custom home built with these trends released by the National Association of Home Builders, take a tour of some of our newly built homes in Mandeville, Covington, and Madisonville.  To find out more, call 985-626-7619 or E-mail Info@RonLeeHomes.com.

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Five Remodel Ideas That Will Enhance the Value of Your Home

How do you remodel with a tight budget when it comes to home improvement? Need to find ways to stretch the dollar when it comes to your remodeling plans? Here are five remodel ideas that will enhance the value of your home.
First and foremost, we start with the heart of the home – the kitchen. Whether you are remodeling for your personal enjoyment or for the resale of your home, it is best to keep a happy medium in your design ideas – unless you never plan on selling your home. A good way to keep remodeling costs down is to use your existing kitchen layout. A little makeover on countertops and cabinets can go a long way. Re-facing your existing cabinets can refresh the overall look of your kitchen. If your cabinets are just too old or not worth keeping, go with ready-to-assemble cabinets which cost half of what new custom cabinets will run you. Countertops can also eat up your budget. Using two different surfaces in your kitchen can keep the cost low. A good way to do this is to use a solid surface on your countertops while using butcher block on your island top. A great benefit for you as the homeowner as well as a potential buyer (if you are looking to sell) is to add Energy Star® appliances. This will not only help with the aesthetic look of the kitchen, but it will also lower your utility bills.

Second, you can never go wrong with adding more square footage to your living space. This will increase your home’s value as well as the quality of your living space. When adding living space, keep in mind the cost can add up. You will need to think about the cost of removing existing walls, moving / adding electric and or plumbing, adding to your foundation, adding a new roof, adding windows, and adding new exterior siding. A word to the wise, a successful addition looks like part of the original structure. Keep this in mind when planning the location, choosing materials, and adding to the existing roof line.

The third thing on the list is curb appeal. First impressions go a long way. The first thing anyone sees is your home’s exterior. There are many solutions to creating a great look for both your home’s exterior and landscape. Make sure your yard is clean and neat by cleaning out overgrown plants, bushes and trees. Painting your home’s exterior can update your home’s look by giving it a nice facelift. If the budget does not allow for a new paint job, a good pressure wash to your siding will dramatically change the outside appearance of your home. To take it one step further, you can add a new entry door, change out old windows, add a front porch, or add dormers which will give your front elevation a new look without completely renovating the whole exterior.

Fourth but oh so important, is the master suite. Anyone buying a home will tell you that their sleeping quarters are very important. If you already have a master bedroom, an update will boost its appearance, making it a more inviting space to spend time in. By doing a few simple things such as painting, replacing the flooring, adding new accessories, and changing the lighting you can create a whole new look to your master bedroom. However, be careful with the choice of paint colors. Muted but distinct colors fit best in a master bedroom for resale purposes. If you do not have a master suite, consider adding one. Things to contemplate when adding a master suite are the location of your new room, if you would like a sitting area, window and door placements, what kind of ceiling you would like, and your lighting.

The last remodel area is where we spend a great deal of time – the bathroom. If your budget is a concern, the focus should go to the powder room and master bathroom remodel first. Stick to the old floorplan. Removing walls, moving bathtubs, sinks and toilets can be a huge cost. Go for cosmetic changes. New paint, new plumbing fixtures, new tile and lighting can enhance your existing bathroom. A great way to stretch your dollar is to use a flat mirror with two lighted sconces instead of a mirrored cabinet with a row of lights. Use plain simple white tile in your shower with a glass colored border which gives it an updated look without spending huge bucks. Regarding paint, this is one area where big, bold colors are a great way to make a huge impact.

If you are considering remodeling your home in St. Tammany Parish, Ron Lee Homes now offers a complete remodeling service.  Contact Ron Lee Homes today to learn more about our remodeling process.  Call 985-626-7619 or E-mail Info@RonLeeHomes.com.

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Sell Your Existing Home With Home Staging Techniques

In order to be able to upgrade your existing home to a second or even new third home buy, you will need to be able to sell your existing home with home staging techniques.  It can be a hassle to constantly have your home “show-ready,” so you in order to get as quick a home sale as possible, you will want to use the following advice on tips and tools to prep your home for sale.
Every detail, no matter how small, is important when staging your home.  Buyers want to be able to picture living in the space. When deciding to list your house for sale, remember, you will sell your house faster, and for more money, if you add interior decorating techniques that will make a home buyer visualize each room of your home’s space.

When selling a home, first begin with the basics and begin with one of life’s necessary chores – cleaning.  A dirty house is not inviting to anyone. Wild paint colors can be a distraction.  You may love your home decorating skills but others may not. Repaint with neutral colors for a nice clean slate. One thing to think about before adding your new paint job is to make any necessary repairs to damaged walls or trim.

De-clutter your home. Think sensory overload – this is not what you want to create for your potential new home buyer. Small knickknacks create clutter which creates chaos. Simple clean lines create a calm inviting feel. Depersonalize your home for sale.  Remove all family photos, or collectables – you want a blank canvas for the buyer to fill in with their ideas to personalize the space and make this their new home. A clean, newly painted, de-cluttered and depersonalized house for sale will give you an edge over some of your competition.

Now, to win over all your competition you must go the extra mile. You want to “wow” your buyer in the first five minutes. If they walk through the door and think to themselves, “I don’t see it,” you have lost a potential buyer.  The following tips will help you stand out from the other houses for sale in your neighborhood.

1. Ever hear the old saying, “Home is where the heart is”?  You want to entice your buyer to visualize the good life they would live in that space. Set up a board game in the family room or stage a potential garden party in the backyard with margarita glasses and festive linens.  You want your buyer to feel like they can sit down and relax in the space.
2. Use the “Rule of Three” when redecorating for the sale of your home.  Remember, you want your home to look natural and flow.  Decorators will tell you that an odd number will give you a good balance.  Too much symmetry makes a space look too stale and too cold, basically uninviting. Barb Schwarz, owner of Stagedhomes.com suggests, “When arranging tablescapes, go with three items of three different heights, in a triangle.”
3. Keep your buyers focused on the space, not what’s in the space.  Do not leave any interesting reading material out for them to browse through, taking their mind off the task at hand.  If you choose to display any reading materials, a great idea is to use decorating, gardening or home magazines. Make sure any books or magazines that are displayed are appropriate and will not offend anyone, turning the buyer off.
4. The master suite is one of the more important spaces in the house. Play the angles of a room and tastefully accessorize the space with stylish, if minimal decorations.  Putting furniture at an angle can break up a stagnant room.  Spruce up the master bed with decorative pillows. Think about how a luxury bathroom or spa is set up.  Take new thick bath towels and display them in the bathroom.  Tie the towels on the towel racks with raffia, tulle or thick ribbons.  Also place the towels on the edge of the bath with new soap and a loofah on top of them. Clean out your cluttered closets.  Only leave seasonal garments with matching non-wire hangers. Organize your shoes and have absolutely no dirty laundry visible.
5. Another very important room is the kitchen.  You want the kitchen to feel clean and open.  You can do this by removing a lot of the stuff you normally use on your kitchen counters and just have basic decorative pieces such as plants, towels, some canisters, and maybe a cookbook. Clean out and organize your refrigerator, pantry, shelves and drawers; your goal is to have some empty space.  This gives the illusion that there is room to spare. Schwarz suggests, “My go-to touch is a white rectangular plate with three pieces of the same fruit spaced evenly on it–peaches, pears, apples.”  Let the buyer envision themselves cooking in the space with an open cookbook placed on an easel.

Remember you do not have to completely do an overhaul by renovating your home for sale or remodeling your home for sale.  By following the guidelines mentioned, you can accomplish a new look to your house. As a seller you want to master the “lived-in-without-looking-lived-in” look. Sellers can expect to experience stiff competition with other home sellers, so they should put their best and most creative “foot forward” when staging their home for sale.

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Designer of Terra Bella Village to Create Lakefront Traditional Neighborhood Development

The term, traditional neighborhood development, evolved out of the concept of urban planning which included designing a “small town” within larger cities that has its own town center as well as commercial, retail, residential, and sometimes rental opportunities for its residents.  Walk to where you work and play became the buzz words for these urban and suburban communities.  Now, in Mandeville, Louisiana urban architect Steve Oubre, of Architects Southwest is set as the designer of terra bella village to create lakefront traditional neighborhood development plans for the site of the now abandoned industrial concrete plant.

Located just east of the Causeway Bridge, the plant was used to fabricate the concrete sections and

pillars for the Causeway Bridge, which was originally built in 1956.  The plant has not operated as an industrial concrete fabrication site since 1984.  Drs Michael and Marcus Pittman purchased the property at sheriff’s auction that same year.  In 2011, they commenced a massive cleanup effort to prep the land for development.

Three planning  meetings have been scheduled by Architects Southwest, the developers, and interested community groups and residents of Mandeville on April 7th, April 9th, and April 13th.  Steve Oubre spoke at the first meeting on April 7th and presented a 90-minute powerpoint explaining the vision of this new community.  After extensive market studies, high-rise towers were eliminated from the plan, and the vision now includes retails shops, housing units, a hotel, and a marina on the lakefront location all centered around the town center, just like the traditional neighborhood developments he designed both in Lafayette, LA and Covington, Louisiana.

Once community feedback has been received, it’s “back to the drawing board” to actually draw up plans and renderings to present to the Mandeville City Council and the St. Tammany Parish government for ultimate approval to begin construction. Homeowners in Mandeville can expect property values to appreciate with the construction of several hundred housing units if the engineered plans are approved.

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Multiple Reasons for Optimism in the Housing Market

Home builders nationwide have a reason to celebrate – it’s beginning to look a lot like a seller’s market once again in the current real estate market.  According to statistics, the monthly supply of homes ready to be purchased on the market has dropped below a 5 months supply.  The tightening of inventory will promote quick sales as well as an eventual increase in home prices as demand will soon outweigh supply.
Potential home buyers will be able to purchase these new homes for sale as well as existing homes for sale because of an easing of credit requirements and down payment requirements both for FHA and Freddie Mac and Fannie Mae loans.  Decisions are being made to introduce loan packages that will offer down payment assistance to home buyers as well.

Another huge factor in supply and demand is the dramatic increase in household formation which means that more people will be out looking to establish a residence whether it is in an apartment or buying a home.  Millennials that were unable to get a job “right out of college” have started to move out of roommate or parent / relative living arrangements because of the new availability of employment nationwide.  The percentage of Millennials looking to get their own place increased by 11% from November to March according to surveys.

Finally, even though housing starts have been stymied by the unusually brutal winter weather, housing sales as of February reported a 7.8% sales increase on a monthly basis for new home sales and a 1.2 sales increase on a monthly basis for previously owned homes.

Wall Street is reflecting this sentiment with the iShares Dow Jones U. S. Home Construction ETF (ITB) showing a new 7.5 year high which is a reflection of the averaging out of home pricing gains which were on a roller coaster ride as the economy recovered.  Investors are interested in housing shares once again as the real estate market is showing true signs of recovery.  Overall there are multiple reasons for optimism in the housing market

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New Home Buyers Can Make More Flexible and Informed Mortgage Decisions

As credit requirements and down payment requirements become more feasible for first-time home buyers as well as conventional loan buyers, new home buyers can make more flexible and informed mortgage decisions about the type of loan that they would like to use making their purchase.  First-time home buyers can enjoy the benefits of using a loan offered by Freddie Mac or Fannie Mae or even an FHA loan.  These loans typically reduce the amount of money that must be brought to the table and make it more affordable to buy a home.

Other home buyers can also use an FHA loan if they meet the time period requirements between the purchase of their existing home and the purchase of a new home.  Also, for the veterans, the VA loan is an incredible opportunity to become a homeowner and start establishing home equity.  Regardless of the type of loan you use when you buy your home, you still have to make a decision about the terms of your loan.  Interest rate, purchased points, ARM vs. standard, and time periods come into play when you are making your decision.  Below are some of the reasons that using a 15-year loan vs. a 30-year fixed loan can be beneficial to your long-term financial situation.

15-Year Home Loans:

1. Pay Off Your Home More Quickly:  If you are in a position to make a higher monthly payment (you have a lot of residual income each month, you have no financial responsibilities for multiple children’s expenses, you have a really low loan amount because you had a lot of equity when you purchased your home, etc.), you will want to consider using a 15-year loan.  Even though the payments will be higher each month, you will save 10’s of thousands of dollars in interest.  If you are near retirement age, you may want to pay off your home quicker so that you don’t have to make loan payments with a social security benefit check.

2. Faster Equity Accrual:  Because the way that a 15-year mortgage is structured, you are making a huge dent in your principal and interest for every loan payment that you make.  Because your payments are higher, you are also paying off more principle, more quickly, thereby creating “instant” home equity by being in a shorter-term loan.

3. Pay Less Interest Overall: Have you ever looked at a Federal Truth in Lending page and wondered how in the world you ended up with $120,000 interest on a $200,000 loan?  With a 15-year mortgage, you pay significantly less interest over the life of the loan because you are cutting the time in half and increasing the amount you pay.

4. Lower Money Up Front: 15-year loans can require less money up front because they require a less stringent loan-to-value (LTV) ratio – 95% vs. 80%.  This means you can finance up to 95% of the value of your loan.  Also, 15-year mortgages typically have better interest rates because they deem the buyer more financially stable and responsible to make higher monthly payments.

5. Multiple Loan Types From Which to Choose: You can get many different types of 15-year loans – FHA loans, conventional loans backed by Freddie Mac and Fannie Mae, and VA loans.  You can pretty much select to turn any type of loan into a 15-year mortgage vs. a 30-year fixed mortgage.
If you are in the market for a new home for sale in the St. Tammany Parish area, you may want to consider building a new custom home in the cities of Mandeville, Madisonville, Covington, and Abita Springs on the Northshore of Lake Pontchartrain.  For more information about building a new home and using a 15-year loan, Contact Us at 985-626-7619 or E-mail Info@RonLeeHomes.com.

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Ways to Maximize Your Home’s Marketability

It’s time to sell your home because you are ready to move on, move up, or move out of state and relocate.  Since real estate has been on the steady track to recovery, chances are good that your home will sell relatively fast in this emerging market.  However, there are ways to maximize your home’s marketability to be able to compete against all of the other home owners who are having the exact same hopeful thoughts as  yourself.  Take note of the concepts below when you are preparing your home for sale.

Keep it Simple:
The way to sell a home successfully to a potential home buyer is to help them imagine their furniture, children, pets, friends, and life in your currently occupied space.  You may want to consider going ahead and packing away the items in your home that make you “uniquely you,” which could include African animal heads on the wall, an extensive doll or teddy bear collection, or a series of books from a particular author alphabetized on your bookshelves.  You never know what people may find strange or offensive, so you want to minimize their exposure to these types of personal belongings.  In the kitchen, living room, and even your master bedroom, get rid of the clutter and clean up the surfaces to allow buyers to “fill up” the spaces with their imaginary lives.
 
Keep it Clean:
This may be a common sense concept for many home sellers, but your definition of clean and a potential home buyer’s concept of clean may be totally different.  Don’t take any chances: go from the outside in and the floor up.  You don’t necessarily have to hire someone to pressure wash the exterior of your home to clean it up, although, here in Louisiana, homes can accumulate mildew in

less than 2 year’s time, so it might be time for a thorough cleaning.  If you want to put some elbow grease into it, you can actually just mix up buckets of lightly bleached water and using a long-handled scrubbing tool for those stubbornly stuck-on spots, you can “wash” the exterior of your home to make the paint look fresh and almost new.  More work can be done by washing your windows both on the outside and the inside, making your floorplan more light and airy while also making the glass sparkle.  Vacuum and MOP your floors on the inside of the home – this will make your home smell fresh as well.  You can either rent a steam cleaner with a scented deodorizer in it or use a powder deodorizer in your vacuum cleaner for your carpets.  Once you have scrubbed every inch of every surface in your home, cover up any remaining odors and put your best foot forward by buying plug-in’s for each room.  They are very powerful and will probably last for the hopefully 30 – 45 days it will take to sell your home.  You never get a second chance to make an excellent first impression.

Keep it Maintenanced
There is a good chance that it will rain in Louisiana while you are trying to sell your home – a chance that it may even rain very hard.  You will want to make sure that your home is kept in good repair throughout the entire selling process.  Before you even start the cleaning process, make sure you REPLACE damaged parts of your home – this includes dents in the walls, water leaks, cracked door or window frames, broken windows, and chipped formica or granite.  If you are not selling your home as a KNOWN, as-is renovation project, you don’t want a buyer to bypass purchasing your home because they see that work will have to be done as soon as they move in.  When selling a previously-owned home, there may be an understanding that it has already been lived in by other people, but you want to give them the illusion that they are buying a home that is in superior condition and will need little to no work at all.

Keep it Exposed
If you use the Internet for professional or personal use, you know that there are websites out there which maximize your home’s marketability through the use of social media.  You can be your own online agent for your home by taking excellent pictures (or having your really talented photographer friend take pictures) of your home and then posting to your personal social media pages.  If you do not yet have an online presence, ask one of your tech-savvy friends to help you by posting the listing for your.  In addition to social media, you can also sign up for real estate websites for free such as trulia.com, zillow.com, activerain.com, and redfin.com to post just your house for sale on the Internet.  Remember, the more pictures and descriptive information that you add, the more your listing will show up in the search results.
After all of your hard work, and your new home sells; you may be interested in building a new custom home on a lot in one of the excellent subdivisions in St. Tammany Parish.  You can Contact Ron Lee Homes at 985-626-7619 or E-mail Info@RonLeeHomes.com to get started on building your new home.

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7-Part Series of Education Workshops for Local St. Tammany Parish Businesses

As an increase to 2014’s workforce development series, the St. Tammany Economic Development Foundation will be sponsoring a 7-part series of education workshops for local St. Tammany Parish businesses, a year-over-year increase from the successful 5-part series which was hosted in 2014.  Founded in 1981, the St. Tammany Parish Economic Development Foundation (STEDF) has been

highly integral in the attraction and retention of new business to the parish.  Even before Hurricane Katrina, this foundation had been gradually increasing business opportunities to the Northshore.  After Hurricane Katrina, the construction growth and economic development of the region has lead to national recognition of the I-12 corridor being one of the fastest growing regional areas in the United States for new business opporunities.


In 2014, the St. Tammany Economic Development Foundation was responsible for the creation of 315 new jobs and the retention of 276 jobs with the completion of 13 projects which saw $54.3 million in investments.  The foundation is diligent in businss retention in St. Tammany Parish by utilizing “retention visits” to existing businesses to gauge their satisfaction and confidence in the local economy.  According to their annual report, the STEDF visited 112 different times to businesses which, all told, provided 7,891 jobs for residents of St. Tammany Parish.

This forward-thinking, proactive, and “preventative” approach to retaining business on the Northshore of Lake Pontchartrain has been the mission of the STEDF.  They are continuing that mindeset by offering the seminars and classes below:

April 28: Healthcare and Biosciences
May 19: Manufacturing
June 23: Digital Media
July 14: Construction and Coastal Restoration
Sept. 22: Energy, Oil and Gas
Oct. 13: Education and Training – Jump Start, Two-Year- and Four-Year-Colleges
Nov. 10: To be determined

“We hope this series will increase your knowledge of workforce opportunities, connect you to resources for workforce enhancement and training and provide insight about the future needs and trends of the workforce in our region,” Ashley Cangelosi Llewellyn, programs manager for the foundation, said in a news release.

To attend any of these workshops about workforce development opportunities, attendees must register in advance during the enrollment period for each program.  The classes themselves will be held in the STEDF conference room on Koop Drive in Mandeville from 9am – 10am with doors opening at 8:30am.  To register for the April event, email stedfinfo@stedf.org.

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