A Rise In Home Building In Rural Markets

The National Home Builders Association (NAHB) has seen a new housing trend with the COVID-19 pandemic. The latest quarterly NAHB Home Building Geography Index (HBGI) found that residential construction is growing faster in lower density markets.

“We expect the virus could affect future housing preferences for those currently living in the hardest-hit, high-density environments like central cities and that housing demand will continue to increase in medium- and low-density communities,” said NAHB Chairman Dean Mon.

“The first quarter HBGI data reveals that construction growth expanded over the last year more quickly in low population density areas than high-density regions,” said NAHB Chief Economist

Robert Dietz. “This trend will continue as households seek out single-family homes further from urban cores, particularly as telecommuting continues in greater numbers.”

The report reveals that proximity and affordability were two of the biggest catalyst in the shift. People are now second-guessing living in metropolitan areas after the public health crisis hit. During the COVID-19 pandemic, metro residents were more vulnerable because of the crowded living conditions, mass transit, insufficient health and public sector infrastructure. Builders are starting to look outside of metropolitan areas where the land is cheaper and there are more building opportunities.

“The HBGI data is consistent with the fact that housing costs are increasing fastest in large metro suburban counties and smaller metro areas with populations under 1 million where demand for housing is high but supply constraints are tight,” said NAHB Chief Economist Robert Dietz.

“Supply-side issues that are hurting affordability and raising costs for builders include excessive regulations, labor shortages, rising material costs and a dearth of buildable lots in mid- to high population centers.”

All national economic geographies in the country showed a 9.1% growth increase in the suburbs over a one-year moving average. In the education and health services sector (EHS), 4% made up the total single construction and made up close to twice the growth rate in the multifamily construction over the past year. The HBGI also found that the education and health services sector was the top quartile of counties and totaled 25.7% above the total employment sectors.

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Many St. Tammany Little Leagues Hope To Still Have A Season

If all goes well youth sports will be allowed to begin the spring season on June 13. A full season will be played with end-of-season tournaments in August.

The decision to reopen will depend on Gov. John Bel Edward’s announcement regarding phase 2 according to St. Tammany Parish President Mike Cooper. Cooper also said the decision to reopen

youth sports this summer will also be discussed among recreation districts, parks, coaches and parents.

“We want to see the kids on the fields in the next few weeks,” St. Tammany Recreation District No. 1 board member Rick Danielson said.

Although non-contact youth sports were allowed in Phase 1, St. Tammany did not allow any sports. The parish’s decision was based on the concerns there were not enough staffing to enforce the recommended safety guidelines.

“We don’t know all the effects on children,” Cooper said “Even young children are getting COVID-19 or other associated illnesses.”

The districts have now had time to come up with safety procedures and policies to follow while holding a season during COVID-19. The procedures will include removing bleachers, staggering schedules to reduce crowds during events, disinfecting dugouts between games, and reforming lines at the concession stands.

Among the St. Tammany districts to reopen will include Slidell Bantam Baseball Association, and St. Tammany Recreation District No. 1, which oversees the sprawling Pelican Park complex near Mandeville. Slidell Bantam Baseball Association usually has around 1,000 players ages 4 to 15 playing during the spring season and Pelican Park already had 504 boys and 206 girls signed up for the 2020 Spring season.

Not all St. Tammany districts agree. Tammany Parish Recreation District 7, which covers Pearl River, and St. Tammany Parish Recreation District No. 4, which covers Lacombe have canceled their spring season altogether.

Most parents are on board with the decision to play. Slidell Bantam Baseball Association’s board president Brad Smith says there has been a positive response to reopening.

“Parents want their kids to get out and do normal things and be back at the ballpark,” Smith said.

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Home Loans On The Increase For Six Consecutive Weeks

As the pandemic stay-at-home orders are now being lifted around the United States, more and more people are looking to purchase a home. The mortgage rates have now dropped even more since the pandemic hit at the beginning of 2020.

The 10-year Treasury yield has consistently lead the mortgage rates but this has not been the case since the coronavirus has produced an economic downturn. The unpredictable economy has fueled

unpredictable mortgage rates. On a good note, the parallel between mortgage rates and bond yields is improving.

“Financial volatility has notably decreased in recent weeks, resulting in steady improvements in the stock market, and more predictable — albeit modest — movements in bond markets,” Zillow ZG, 1.50% economist Matthew Speakman said. “The eased strains in financial markets have also resulted in mortgage rates remaining fairly flat in the last couple of weeks and are generally calmer following the turmoil experienced in the early days of the coronavirus outbreak.”

The end of May has shown “the lowest level since Freddie Mac began tracking this data starting in 1971.” Freddie Mac reported the week ending May 28 the average 30-year fixed-rate was 3.15%, a drop of nine basis points from the week before. This will make the third report in a row that has shown historical low-interest rates. The 15-year fixed-rate also dropped to 2.62% which was a drop in eight basis points.

Homebuyers are ready to buy and are looking to purchase a home in the next several months. According to the Mortgage Bankers Association, the amount of mortgage applications has been on the rise making the volume of purchase loans up 54% from early spring. This is a great time to purchase a home and sales should see a rebound from the pandemic.

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The Demand For A Home Office Is On the Rise

The shelter-in-place orders have most Americans working from home. This huge shift in where we spend our time has changed the way certain specialty rooms are viewed. The National Association of Home Builders (NAHB) data that was just collected shows that specialty rooms such as home offices and exercise rooms are on the must list for current home buyers.

The certain preference study data comes from the NAHB’s What Home Buyers Really Want. The survey asks recent and current home buyers what features they want in a home and a community. The

most recent study was conducted in 2018 but the NAHB believes this trend will only grow with the COVID-19 pandemic.

Houzz.com recently conducted a survey that concluded that 55% of homeowners and practitioners have a home office, 25% work from their kitchen or dining room table, and 11% work from their sofa. The study also looked at the challenges the country is currently facing working from home. Thirty-percent find it hard to find a quiet location away from high-traffic living areas while 25% have trouble with getting a strong Wi-Fi connection as well as creating a comfortable workspace.

Working from home has become the norm and here are a few quick tips to enhance the space from NAR’s Realtor Magazine. Pick the right location such as a spare bedroom, dining room, den, or any quieter space you can find. Always make sure your lighting is perfect in the space to avoid eye strain. Last, make it ergonomic by arranging your chair, desk, computer, keyboard, mouse, and phone in a safe and efficient way. Make sure you are comfortable, this will allow for a more productive work from home day.

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