Even though the housing market continues to see rising home prices throughout the United States as supply is shrinking, the demand for buying a new home or buying a home for sale has tapered off slightly because of the rising interest rates. The good news is that the economy has finally rebounded from the devastating effects of the Recession, but that means that in order to stem inflation and keep the economy in check, the Fed had to raise interest rates. Because of the this, buyers are being more careful and thrifty with their money and the amount of money they can spend on their monthly mortgage note which translates for sellers that even though it’s very much a seller’s market, sellers are having to make concessions in order to close the deal with home buyers.
In June, 2018, sellers cut prices on approximately 14% of all home sales in order to close the sale. At the end of 2016, the lowest price cut by sellers was 11.7%, so price cuts are on the rise as home prices, having been on the rise, might be reaching their ceiling.
Simple supply and demand have been factors in the cost of homes and the affordability of homes. Rising interest rates have also affected affordability with the ability of buyers to make a larger monthly note. The supply of houses for sale was affected by two huge factors – the so-called “millenial” generation coming of age to be able to buy a home for sale and the disappearance of homes through the foreclosure process that were then turned into single-family rentals, removing them as purchasable homes on the market.
Also, builders recovering from the Recession were cautious as to how many construction loans they took on, having been burned by the Recession and standing inventory. The slow start of builders to start to get “spec houses” out for sale, sticking to the guaranteed deal of having contracts to build a new home or build a completely custom home also contributed to the lack of supply on the market.
Even though the slowdown of the housing market might seem alarming to some people, economists predict rightly that real estate is finally returning to a normal market. Nationwide, there is not a reflection of a total overall slowdown though. Different markets with different factors including job growth and corporate buy-in’s give different locations encouraging statistics. One such market is Austin, Texas, which is enjoying an incredible housing market because of an influx of technology jobs.
“We saw intense bidding on homes over the past few years, but that is calming down with more inventory in the area,” said B Barnett, a real estate agent at Reilly Realtors in Austin. “Our inventory of homes is going up with new construction, and it is helping transfer power back to the buyer.”
Economic forecasts for 2019 show a slowdown of the GDP as the effects of the tax cuts and stock market surge level off. If you are interested in skipping the challenge of supply and demand in your market and would like to just build your own new home in St. Tammany Parish, Louisiana, Contact Ron Lee Homes, a custom home builder, directly at 985-626-7619 or email Info@RonLeeHomes.com.
Click Here for the Source of the Information.
Thursday, September 27, 2018
Friday, September 21, 2018
Housing Market in St. Tammany Parish Shows Increases in the Price Per Square Foot
St. Tammany Parish is enjoying a robust housing market when it comes to the value and appreciation of homes for sale and new homes for sale. During the first 6 months of 2018, the price per square foot of homes in the Greater St. Tammany Parish area were calculated and then compared to 2017’s prices and the price per square foot of homes before Hurricane Katrina hit the Greater New Orleans area in 2005. The results of that comparison are spelled out below.
Homes for sale and new homes for sale which have seen a steady increase in value from Katrina to the first 6 months of the year include homes located in Folsom, Covington Central (70433), Madisonville, Mandeville (70471), Lacombe, Slidell (70460), and Abita Springs.
In Mandeville and Madisonville, the price per square foot during the first 6 months of 2018 is actually identical at $143 / square foot. In Mandeville, there was an increase of $31 and in Madisonville, there was an increase of $37 from 2005 to 2018. In Lacombe, there was an increase of $12, in Folsom it was an increase of $15, in Slidell (70460), there wan an increase of $14, and in Abita Springs, there wan an increase of $29.
The city which saw the biggest increase in the price per square foot of a home in St. Tammany Parish overall was Covington Central (70433) with an increase of $41 per square foot since 2005. Other cities saw an increase in 2017 and then a slight decrease in 2018, which is in line with the softening of the housing market as interest rates went up towards the middle / end of 2018. These cities inclued Bush, North Covington (70435), Pearl River, Slidell (70461), and Slidell (70458). In North Covington, the price per square foot of homes for sale stayed exactly the same from 2017 to 2018. In Pearl River, the price increased from $87 in 2005 to $105 in 2017 and then decreased to $100 in 2018. In Slidell (70461), there was also an increase from $87 in 2005 to $105 in 2017 to decrease just $2 to $103 in 2018.
Overall the increase in the price per square foot in St. Tammany Parish increased 3.1% from $118.70 to $122.40 per square foot. Average home pricing went from $253,553 to $264,754, and the city which saw the most amount of growth was in Madisonville. Residency increased in Madisonville to over 11,000 residents in 2018. This small charming town on the banks of the Tchefuncte River began as a town of 4,000 at the turn of the century, just to give context to the amount of growth.
So, if you’re in the market for a home to buy, check out the areas of St. Tammany Parish where you can afford to live. The housing market is hot right now, and available housing is tight – you might want to consider building your own home so that you get exactly what you want for the price you can afford. Call 985-626-7619 or email Ron Lee Homes at Info@RonLeeHomes.com to start your building process today!
Click Here for the Source of the Information.
Homes for sale and new homes for sale which have seen a steady increase in value from Katrina to the first 6 months of the year include homes located in Folsom, Covington Central (70433), Madisonville, Mandeville (70471), Lacombe, Slidell (70460), and Abita Springs.
In Mandeville and Madisonville, the price per square foot during the first 6 months of 2018 is actually identical at $143 / square foot. In Mandeville, there was an increase of $31 and in Madisonville, there was an increase of $37 from 2005 to 2018. In Lacombe, there was an increase of $12, in Folsom it was an increase of $15, in Slidell (70460), there wan an increase of $14, and in Abita Springs, there wan an increase of $29.
The city which saw the biggest increase in the price per square foot of a home in St. Tammany Parish overall was Covington Central (70433) with an increase of $41 per square foot since 2005. Other cities saw an increase in 2017 and then a slight decrease in 2018, which is in line with the softening of the housing market as interest rates went up towards the middle / end of 2018. These cities inclued Bush, North Covington (70435), Pearl River, Slidell (70461), and Slidell (70458). In North Covington, the price per square foot of homes for sale stayed exactly the same from 2017 to 2018. In Pearl River, the price increased from $87 in 2005 to $105 in 2017 and then decreased to $100 in 2018. In Slidell (70461), there was also an increase from $87 in 2005 to $105 in 2017 to decrease just $2 to $103 in 2018.
Overall the increase in the price per square foot in St. Tammany Parish increased 3.1% from $118.70 to $122.40 per square foot. Average home pricing went from $253,553 to $264,754, and the city which saw the most amount of growth was in Madisonville. Residency increased in Madisonville to over 11,000 residents in 2018. This small charming town on the banks of the Tchefuncte River began as a town of 4,000 at the turn of the century, just to give context to the amount of growth.
So, if you’re in the market for a home to buy, check out the areas of St. Tammany Parish where you can afford to live. The housing market is hot right now, and available housing is tight – you might want to consider building your own home so that you get exactly what you want for the price you can afford. Call 985-626-7619 or email Ron Lee Homes at Info@RonLeeHomes.com to start your building process today!
Click Here for the Source of the Information.
Wednesday, September 12, 2018
New Homes for Sale Available Come at a Price
After the housing market struggled to make a comeback after the Recession, the supply of homes for sale and new homes for sale available in the real estate market has continued to decline. Because of this the supply of homes and new homes available to buy has decreased to a crucial point. That is that there is now more demand for homes to buy than there are homes and new homes on the market for sale.
Because of the lopsided nature of supply and demand in real estate, home prices have not only continued to increase, but they are still increasing at a rapid pace. According to Core Logic, a real estate analysis company which tracks housing trends nationwide, the price of homes for sale increased by 6.8% in June, 2018, compared to June, 2017. May, 2014 was the last time that housing prices had such a high year-over-year percentage increase, which was during one of the fast-paced recovery years of real estate after the Recession.
The price of homes continuing to go up is unsustainable as mortgage rates are also on the rise, putting
the cost of the monthly note out of reach for some home buyers. However, as long as demand continues to outpace supply, the prices will continue to have a “seller’s market” mentality for home buyers who are able to qualify for loans.
Another factor in the increase in home prices is that prices are now double that of the growth of individual’s growth in salary. However, there are signs that home prices will start to see a slow down as the S&P/Case-Shiller 20-city index had less growth during May, 2018 than May, 2017. There are also other trends that show an overall economic slowdown that have probably not translated to the real estate housing market just yet.
What you can take away from this news is that if you have a home to sell and are wanting to buy a new home or a home for sale, you will want to make sure you are able to move quickly on buying a home and actually moving out since it truly is a seller’s market out there. If you are buying a home in the St. Tammany Parish area, Contact Ron Lee Homes about our Homes for Sale or to build the home of your dreams in Mandeville, Madisonville, Covington, Abita Springs, or Folsom! Call 985-626-7619 or email Info@RonLeeHomes.com.
Click Here for the Source of the Information.
Because of the lopsided nature of supply and demand in real estate, home prices have not only continued to increase, but they are still increasing at a rapid pace. According to Core Logic, a real estate analysis company which tracks housing trends nationwide, the price of homes for sale increased by 6.8% in June, 2018, compared to June, 2017. May, 2014 was the last time that housing prices had such a high year-over-year percentage increase, which was during one of the fast-paced recovery years of real estate after the Recession.
The price of homes continuing to go up is unsustainable as mortgage rates are also on the rise, putting
Another factor in the increase in home prices is that prices are now double that of the growth of individual’s growth in salary. However, there are signs that home prices will start to see a slow down as the S&P/Case-Shiller 20-city index had less growth during May, 2018 than May, 2017. There are also other trends that show an overall economic slowdown that have probably not translated to the real estate housing market just yet.
What you can take away from this news is that if you have a home to sell and are wanting to buy a new home or a home for sale, you will want to make sure you are able to move quickly on buying a home and actually moving out since it truly is a seller’s market out there. If you are buying a home in the St. Tammany Parish area, Contact Ron Lee Homes about our Homes for Sale or to build the home of your dreams in Mandeville, Madisonville, Covington, Abita Springs, or Folsom! Call 985-626-7619 or email Info@RonLeeHomes.com.
Click Here for the Source of the Information.
Tuesday, September 4, 2018
Additional Home Loan Programs to Complement Current FHA Loan Programs
Home buyers have faced a challenging environment for being able to qualify for home loans since the real estate market crashed over 10 years ago. Since then, the main program offering affordable home loans has been from the Federal Housing Authority which offers FHA loans. Now, government sponsored Fannie Mae and Freddie Mac are offering additional loan programs to home buyers with less than stellar portfolios to make it possible for them to buy a home.
One of the programs offered by Fannie Mae is the HomeReady program which allows a credit score as low as 620 or a debt-to-income (DTI) of as much as 50% with only a 3% down payment. While other factors are taken into account of a potential home buyer’s credit profile, these two factors
separately don’t automatically decline the home buyer from being able to buy a home. For people who are within the income limits of this loan program, it is a viable alternative to the FHA loan which can incur high mortgage insurance premiums which can last for 5 to 15 years on payments of the loan. This program also counts rental income as a true source of income and allows co-borrowers to be people not actually residing in the home – think a parent or grandparent co-signing on the loan.
Another program that is available is being offered by Freddie Mac. It is called the HomePossible program. It also allows a 3% down payment, and is specifically designed for home buyers with a lower income level. Repeat buyers qualify for this loan program as well. Freddie Mac is also offering a new loan program called HomeOne. HomeOne’s advantages are that there are no income limits, and there are also no geographic restrictions. A credit score of at least 640 is required for this loan, but that it still well below the “perfect” credit score require by a regular conventional loan.
Where before, home buyers had to account for every penny in their bank account before being able to get approval for their loan, Fannie Mae and Freddie Mac are now allowing home buyers to crowd source fund a down payment for their loan. With home prices going up, a 3% down payment is turning into a higher and higher amount, so being able to raise money to buy a home, just like you would raise money for other things in your life, is a huge advantage. An program called Loftium actually has a unique “forward-thinking” program for home buyers. They allow a home buyer to rent out a room of their home, calculate the potential income for the rental and then “front” a percentage of that income as part of the down payment on the loan. This is a truly innovative way of “getting a home buyer into a home.”
Fannie Mae is also in the trial stages of a lease-to-own program for home buyers where a buyer begins as a renter and then has a deadline to buy the home for an agreed-upon price in a designated number of years. This program is not an official loan program yet, as it is just in the beginning stages.
So, however you are trying to buy your new home, there are programs out there to assist you if you don’t have the upfront money or need a little “mercy” because of bad credit or a high debt-to-income percentage. Ask your lender about these programs to see if you qualify.
For more information about buying a home for sale in St. Tammany Parish, Contact Us Today at 985-626-7619 or Email Info@RonLeeHomes.com.
Click Here for the Source of the Information.
One of the programs offered by Fannie Mae is the HomeReady program which allows a credit score as low as 620 or a debt-to-income (DTI) of as much as 50% with only a 3% down payment. While other factors are taken into account of a potential home buyer’s credit profile, these two factors
Another program that is available is being offered by Freddie Mac. It is called the HomePossible program. It also allows a 3% down payment, and is specifically designed for home buyers with a lower income level. Repeat buyers qualify for this loan program as well. Freddie Mac is also offering a new loan program called HomeOne. HomeOne’s advantages are that there are no income limits, and there are also no geographic restrictions. A credit score of at least 640 is required for this loan, but that it still well below the “perfect” credit score require by a regular conventional loan.
Where before, home buyers had to account for every penny in their bank account before being able to get approval for their loan, Fannie Mae and Freddie Mac are now allowing home buyers to crowd source fund a down payment for their loan. With home prices going up, a 3% down payment is turning into a higher and higher amount, so being able to raise money to buy a home, just like you would raise money for other things in your life, is a huge advantage. An program called Loftium actually has a unique “forward-thinking” program for home buyers. They allow a home buyer to rent out a room of their home, calculate the potential income for the rental and then “front” a percentage of that income as part of the down payment on the loan. This is a truly innovative way of “getting a home buyer into a home.”
Fannie Mae is also in the trial stages of a lease-to-own program for home buyers where a buyer begins as a renter and then has a deadline to buy the home for an agreed-upon price in a designated number of years. This program is not an official loan program yet, as it is just in the beginning stages.
So, however you are trying to buy your new home, there are programs out there to assist you if you don’t have the upfront money or need a little “mercy” because of bad credit or a high debt-to-income percentage. Ask your lender about these programs to see if you qualify.
For more information about buying a home for sale in St. Tammany Parish, Contact Us Today at 985-626-7619 or Email Info@RonLeeHomes.com.
Click Here for the Source of the Information.
Subscribe to:
Posts (Atom)