Home Sales Higher Than This Time Last Year

The National Association of Realtors reported good news for home sales this fall. According to their data, home sales were 4.4% higher annually. This stems from the boost in newly built home sales,

lower 30-year fixed rates and an overall increase annually in pending home sales.

Across the country for-sale inventory has fallen but the demand has increased. October 2019, showed a major spike in sales of newly built homes compared to those reported in October 2018. Builders across the United States are focusing more on construction of more affordable homes.

Lower rates throughout this year has definitely pushed an increase in demand for new construction. The average 30-year fixed mortgage rates reached almost a full percentage

point lower this October than it was a year ago. Reports are showing an increase in mortgage applications and this will continue as the lower interest rate holds.

All the regions reported an annually higher percentage in pending home sales. The Northeast reported a 3% higher increase, the Midwest was 1.8% higher, the South reported a 5.1% increase from this time last year and the West was a 7.5% increase.

“There is no shortage of buyers seeking homes,” said Lawrence Yun, chief economist at the NAR.

Click Here For the Source of the Information.

Hidden Home Features Valued by Homeowners

There are many different types of features that people look for in a previously-owned home, as well as a home that is built custom by a new home builder.  These features can include the type of flooring, the type of cabinetry, the type of countertops, and many other selections.  However, there are other “forgotten” features which can be hidden luxuries in a new home or a resale home which can also add aesthetic value and make a home more valuable.

Whether you are building a new home or buying an already-built home, storage inside a home can be very important.  Any home that has “out-of-the-way” storage is also a great benefit.  Built-in storage

shelving in closets, bathrooms, and planned built-ins around the fireplace or in private office nooks offer surprising and unexpected “hidden” spaces which allow for a homeowner to be able to put things away and not waste space.

Although not very common, another hidden luxury are heated floors.  Heated floors can mostly be found in bathroom areas and other wet areas. Heated floors can be especially wonderful for new homes built custom for older homeowners who appreciate warm floors on older bones.

Many already built homes have this next feature – surround sound.  Many people prefer to install custom systems once they own a home and have placed all of their music and entertainment equipment in specific places throughout the home.  Properly installed, working sound systems can add great value to a home for sale because people can envision how they can use the installed system to fit their needs.  If you are building a new, custom home, you can also have the system installed where it doesn’t affect the walls and flooring because it can be implemented with the electrical system before the walls are erected and finished.

A very popular home luxury which can be found in many newly built homes for sale in West St. Tammany Parish is under-cabinet lighting in the kitchen.  This lighting can be both underneath the lower cabinets and also installed in top cabinets that double as display cases with glass fronts.  This lighting can add an amazing aesthetic value to the kitchen and also is helpful for navigating spaces at night or when you are just getting home from work.

These new home and already built home luxuries are not common, but they are very appreciated by home buyers when they are searching for a home to buy.

Click Here for the Source of the Information.

Appraisals a Big Challenge But Getting Easier

One of the biggest challenges facing builders and people selling their homes in St. Tammany Parish and Southeast Louisiana are the appraisals that are given for the homes for sale and built new homes.  Recently, in the last few years, laws were established requiring banks and mortgage companies to choose appraisers from a universal list, giving each appraiser an equal amount of work. However, because appraisers are not required to go through intensive training and maintain continuing education, some appraisals that were turned in to the banks and mortgage companies fell far below what the perceived value of the house was.

This causes a problem for the closing process in that the loan amount is often more than the house is worth, according the appraiser.  The appraisal process for a home for sale or new home for sale in a

new neighborhood or in a rural part of St. Tammany Parish, where there aren’t a lot of “comps” (comparisons of homes previously sold in the area) can be a stressful one for a home buyer looking to buy a new home or existing home for sale, unless it is a cash sale.  The appraisal dictates to the mortgage company or the bank how much the loan amount can be based upon the value of the house and / or the down payment of the buyer.

“An appraisal can vastly impact the mortgage process. This number alone can impact how much a buyer needs to bring to closing, or the current equity a homeowner has when refinancing,” said Bill Banfield, Quicken Loans Executive Vice President of Capital Markets. “If homeowners are aware of local home values and how they are changing, it will assist with a smoother mortgage process.”
However, there is good news for the real estate industry, the distance (difference) between the amount of the appraisal and new home and existing home prices has narrowed for 4 months in a row according to the National Quicken Loans home Price Perception Index (HPPI). Appraised values are still falling short of home prices, but the most recently logged margin during the month of September was 1.14%. This is good news for builders looking to sell their homes (and have them appraise) at market value.

Click Here for the Source of the Information.