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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