Home Prices Skyrocket in 1st Quarter

To see national total homes sales which include single-family homes and condos grow 5% year-over-year and 1.4% compared to the 4th quarter, 2016, reaching a total of 5.62 million total sales is incredible for the first quarter of 2017, but to know that it is the second highest growth rate in real estate sales since 2007’s 5.66 million is outstanding.  However, that is where home sales stand in the

first quarter of this year.  Currently, there is only a 3.7 month supply of homes available for purchase, turning the market into a buyer’s market vs. a seller’s market.  Unfortunately for buyers, this has caused a problem when trying to buy affordably because home pricing has once again been on the rise after leveling out after the Recession.

For three quarters in a row, home prices have been on the rise.  The national median sales price for a single-family home was $232,100 in the 1st quarter which is an increase of 6.9% in a year-over-year comparison with 2016.  The highest growth of prices was actually seen in the 2nd quarter of 2015 when prices went up 8.2% in one quarter. This is the second highest growth rate since. During the 4th quarter of 2016, home buyers experienced a 5.9% in home prices, so the startling upward trend in the 1st quarter of the year is of concern with inventory dwindling and more buyers entering the market.  The most problematic part of this is that as home prices rise, the interest rates have also been increased, so the combination of the two have shown a slight lull in home sales as buyers have had to

adjust and try to qualify with the new pricing and rates.

“Prospective buyers poured into the market to start the year, and while their increased presence led to a boost in sales, new listings failed to keep up and hovered around record lows all quarter,” Lawrence Yun, NAR chief economist said. “Those able to successfully buy most likely had to outbid others – especially for those in the starter-home market – which in turn quickened price growth to the fastest quarterly pace in almost two years.”

Added Yun, “Several metro areas with the healthiest job gains in recent years continue to see a large upswing in buyer demand but lack the commensurate ramp up in new home construction. This is why many of these areas – in particular several parts of the South and West – are seeing unhealthy price appreciation that far exceeds incomes.”

In the southern region, there is encouraging news as total home sales increased 5.8% year-over-year compared to the 1st quarter of 2016 but also quarter-over-quarter as compared to the 4th quarter of 2016. However, one thing to watch was the 8.8% increase in home pricing compared to the first quarter of 2016, bringing the average home price to $209,000 in the South.

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Mandeville Trailhead Acquires Italian Cuisine

The Mandeville Trailhead will soon enjoy the authentic Italian cuisine of a local restaurant owner – Giovanni “Gio” Vanchere – who was also a high-profile chef in Vegas while operating award-winning restaurants and briefly acting as the catering director at Caesars Palace. Vanchere will be moving his 10-year-old restaurant Gio’s Villa Vancheri to the corner of Woodrow and Lafitte Streets at 690 Lafitte St. in Mandeville.

This well-known Mandeville treasure has been located on the East Causeway Approach next to a Vietnamese restaurant for over 10 years and has had a steady and loyal clientele, especially considering that getting to the restaurant was sometimes hampered by the road construction that had

been an almost 3-year ordeal for people living and working off of Florida St. and Hwy. 190.  The new location previously housed the Opal Basil restaurant, which served its last meal April 29th.

The new location of Gio’s Villa Vancheri will open around June 17th. Vanchere is pleased to now own a location, instead of renting one, and he is going to use all of the available square footage to showcase his wares.  The bottom level of the new restaurant will features tapas – European-style – and an antipasti bar.  Outdoor seating will be available on the second floor and will be the main part of the restaurant serving the authentic Italian dishes that have made Vanchere popular over the last 10 years.

“It’s been very gratifying to have the following of friends we have now and our new location will have more room for them,” he said. “And, it will be my own building.”

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Challenges Facing Millenials to Buy a Home

With home pricing increasing in the last 3 consecutive quarters of 2016 and 2017, interest rates inching up because of the Fed allowing interest rate increases, and the supply of housing dwindling because of an active real estate market, the home buyers in the market to purchase a home are in for a lot of challenges as they try to find a home to buy. Interestingly, the demographic of home buyers

entering the market this spring is predicted to be 45% millenials.

“Millennials are mostly first-time buyers and they are competing against repeat buyers who have more buying leverage and experience,” said Javier Vivas, manager of economic research for Realtor.com. He added that Millennials recently became the dominant group of users searching for homes on the website.

Most millenials will probably be first-time home buyers, and these buyers new to the market will be going up against seasoned home buyers who know how to bargain and bid for the homes that they have been evaluating since last year. Combined with a rise of 7% in home values (according to Zillow) and a shortage of home for

sale inventory in the housing market – approximately a 3% drop compared to the same time last year; millenials will need to approach their purchase decisions prepared both financially and proactively.

Homes going on the market in this type of environment are typically swooped up quickly or immediately have several people bidding on one house. Advice to these first-time buyers would be to establish your loan approval before even beginning the home search process so that you know exactly the type and price of home you can afford. Then, move quickly on any new homes for sale that come on the market.  If the bidding war gets out of control, move on to the next prospect because going out of your approval amount or budget will only hold up your ability to close the sale. Most of all, don’t get frustrated – interest rates, though going up slightly, are still historically lower than in any years past, making now an excellent time to buy a home.

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St. Tammany Parish Is in the Top 3 Fastest Growing Parishes

St. Tammany Parish is in the top 3 fastest growing parishes in Louisiana.  The entire Baton Rouge area (Ascension & Livingston Parishes) had the highest amount of growth in 2016 at 3.66% and 3.27% respectively.  St. Tammany Parish grew by 3.08% from 246,026 residents in 2014 to 253,602 in 2016. The census shows that there is a lot of “Southshore / Northshore movement” with people moving into St. Tammany Parish from Jefferson and Orleans parishes.  There are also new home

residents moving in from Tangipahoa and Washington parishes, adjacent to St. Tammany Parish.  People from Pearl River County (Picayune, MS) also reported moving to St. Tammany Parish in 2016.

St. Tammany Parish has been on a progressive growth trend since 2010 with 7.5% growth from 2010 to 2016.  There are two main reasons for this – the birth of new children and the steady incoming tide of new or returning St. Tammany homeowners.  The actual numbers that show this growth are 234,568 residents in 2010 grew to 253,602 residents reported on the census during 2016.  This growth is not overshadowed by the “Katrina effect” where we saw a surge of home buyer and renters from the Southshore right after the storm.  This growth is independent and accounts for 2,000 to 3,000 people moving to St. Tammany Parish annually over the last 16 years.

St. Tammany Parish also has a high “retention rate” with more people staying in the parish than

moving out of it.  In 2016, for instance 2,416 more people moved into the parish than those moving out. Also, St. Tammany Parish has proven to have the ability to attract a “brand new audience,” attracting more people moving into the parish from out-of-state than any other parish in Southeast Louisiana.

Other facts to note include that births in St. Tammany Parish have been approaching the amount of 3,000 since 2011.  In 2016, that birth rate amount finally topped 3,000, so that has accounted immensely for growth in St. Tammany Parish. The “small town feel” with all of the trappings of commercial development, retail, entertainment, dining, and services of the cities of Slidell, Covington, and Mandeville are the draw of people moving into the parish.  Although still considered a “bedroom community,” St. Tammany Parish also offers homeowners pretty much any lifestyle amenity they could need.

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Pelican Park Receives Excellence in Parks Award

One of Mandeville’s treasured landmarks which also services up to 1 million visitors a year, Pelican Park was recognized by the Louisiana Recreation and Park Association, receiving the Excellence in Parks Award for 2017 at the association’s recent annual conference in Baton Rouge.

Pelican Park and the Castine Center are located in an independently goverened district in St. Tammany Parish called Recreation District No. 1.  All oversight for this district is handled by a

seven-member administrative board. The district takes in sales tax from its approximately 70,000 and uses the funds to run the park and event hall of the Castine Center.

Pelican Park itself offers 33 athletic fields, 2 gyms with a total of 4 courts, a dog park, walking trail, outdoor volleyball courts, and an 18-hole disc golf course. Events are held regularly at the Castine Center’s 46,000 square-foot facility located on the Park grounds.  Care and maintenance of Pelican Park and the Center are actually done by a lot of volunteer work.

“Thanks to the past and present dedicated volunteers, coaches and staff who have all contributed to making Pelican Park what it is today,” said Kathy Foley, Pelican Park Director, regarding the presentation of the Award of Excellence.

St. Tammany Parish’s Recreation District No. 1 recently bought approximately 100 acres to expand the services offered by Pelican Park.

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Interesting History of the Bank Building in Old Mandeville

The Candy Bank, located in Mandeville at the corner of Claiborne and Carroll Street, famous slogan is “Put Your Money Where Your Mouth Is!” This sweet filled store sells candy and ice cream and is owned by Thomas and Lisa Keiffer. Why they chose this catchy phrase can be explained by the history of this well-known Old Mandeville landmark.

St. Tammany Banking Company and Savings Bank was founded in 1905. The first president and one

of its founders was Harvey E. Ellis.  The bank opened a branch in Mandeville and was the first tenant to occupy the building in 1907.  The company opened its doors with $5000 in stock on January 1, 1907.

The building was built in the Beaux Arts style that was popular from 1880 to the 1920’s and was not only the largest building around but also the sturdiest.  Along with its decorative touches such as a gable roof with exposed rafters and intricate cornices, the building was built like a “German Bunker.”  Locals knew this was the place to go when inclement weather was upon them. “The old vault is the place to go,” said current owner Thomas Keiffer. A well-known 20th century author Arthemise Goertz refers to the large bank building in her novel, “New Heaven, New Earth.” The main character, Dr. Victor duRocher, declares: “When the fences go, we must go too. We must get out. We must go to the bank building.”

With the change in the commercial corridor of Old Mandeville from Carroll Street to Girod Street the bank building has since housed many different tenants and businesses. The building has been a previous owner’s residence, a legal office, a medical office, a photography studio, a pet supply store and a coffee house. Many Mandeville residents even remember when the building was part of Windhaven Antiques owned by Ms. Dale Gale. Luckily this old historical landmark has kept up with the times and has held its purpose.

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Moving to St. Tammany Parish Good for Business

For people moving to St. Tammany Parish, this part of the Greater New Orleans area includes a diverse arrangement of local businesses, franchises, and big box retail stores.  There are also several large corporations that have locations in the parish, such as Chevron, LLOG, Budweiser, WalMart, and others.  It’s hard to describe a bedroom community that also includes opportunities for incredibly

well-paying jobs with national corporations and plenty of shopping, dining, & entertainment venues.  Main mall box stores include Belk’s, Dillards, & JC Penny, and other huge chains include Academy Sports + Outdoors, Target, Best Buy, and more.

However, St. Tammany Parish has cities in it that are still considered “small town” in the way that people interact.  Referral business is still one of the biggest factors when getting new business as an entrepreneur.  Pretty much any time anyone meets anyone, they immediately try to figure out the six or 16 degrees of separation of the people you and they might both know.  Because of this, the parish has great quality of life, and has experienced phenomenal growth over the last 16 years.

Now, according to the St. Tammany Economic Development Foundation, 2016 has shown a 20%

increase in new business incorporations for entrepreneurs and businesses moving into the area compared to 2015’s numbers. This growth was focused towards the last 2 quarters of the year specifically the 4th quarter.

“We saw a significant uptick in new business incorporations in the second half of the year,” said Brenda Bertus, the foundation’s chief executive officer. “And we saw the most incorporations in the fourth quarter. We’re already seeing this trend continue in 2017.”
An astonishing 54.1% increase in new business incorporations were recorded during the 4th quarter for a total of 2,401 businesses in St. Tammany Parish. Also, hotel sales reflected the same growth with a total of $55.2 million and 18.8% of that amount adding up in the 4th quarter of 2016.  Estimated total sales and sales tax collections were as follows: $4.8 billion and $229 million respectively.

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