Will Home Prices Still Increase in 2022?

Home appreciation has been busy this year. According to many leaders in the industry, home prices have been skyrocketing all year and are still on the rise. Data shows all over the market that the percentages are still rising year-over-year.

The latest percentages of the year-over-year increase in home price appreciation are all-around 18%. The House Price Index (HPI) that is part of the Federal Housing Finance Agency (FHFA) reported 18.8%, the S. National Home Price Index from S&P Case-Shiller 18.6% and the Home Price Insights Report from CoreLogic is 18%.

The increases are found across the board at every price point. CoreLogic's HPI sees almost a 19% increase year-over-year in all price points. The low price point saw a 22.1% increase, the low-to-middle saw a 20% increase, the middle-to-moderate saw a 19.9% increase and the high price point saw a 19.1% increase.

The FHFA reported an increase across the country. The highest increase year-over-year in the second quarter in 2021 was in the mountain region is 22.9% and the lowest was seen in West North Central with a 14.9% increase. The remainder includes New England at 20.4%, Pacific at 20.1%, South Atlantic at 17.3%, Middle Atlantic at 17.1%, East South Central at 16.4%, East North Central at 15.7%, West South Central at 15% and West North Central at 14.9%. Overall the United States saw an average of a 17.4% increase.

Prices in 2022 should also increase. The future still sees a low housing inventory with high demands. Home appreciation will still be going on in 2022 but more moderate.

“Given the widespread demand and considering the number of standalone homes built during the past decade, the single-family market is estimated to be undersupplied by 4.35 million units by 2022,” reported CoreLogic.

If you are in the market for a home, contact your local Realtor who can help you along the way. The next year 2022 will hopefully see a great boost in the housing market.

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Several Questions To Ponder Before Buying a Home

Purchasing a home is one of life's biggest and most stressful events. With that said, it is also one of the most exciting events. When it comes to advise, everyone has it and while friends and family have your best interest in mind, to make the best decision, you need to ask yourself these three questions.

1. What's Going on with Home Prices?

Home prices are a big part of the housing market. Home prices directly affect how much it will cost you to buy a home and how much you stand to gain as a homeowner when prices appreciate. Waiting might not be in the best interest of the buyer.

The current market is seeing big home price surges and looks like they will continue. Keeping Current Matters reveals Home Price Forecasts for 2021. This is a good tool to use to predict just what it will cost you to buy a home. Today the average of all forecasts is 12.46%. This means a median-priced home that cost $350,000 in January of 2021 will cost an additional $43,610 by the end of the year. So in a nutshell the longer you wait to purchase a home the more it will cost you.

2. Are Today's Low Mortgage Rates Going To Last?

Due to record-low mortgage rates, today's market is booming. Interest rates also put a big dent in the market. The lower the rate the better the market, the higher the rate the slower the market. Just a slight increase can make a big impact on the overall cost of a home.

3. Why Is Homeownership Important to You?

The answer to this question is not the same for everyone. This is a personal decision and can only be answered by you. Financial benefits are important but emotional benefits are also. According to the 2021 National Homeownership Market Survey, there are nine reasons homeowners value homeownership.

These nine reasons directly affect how you feel about your home. Six of the nine reasons include stability, safety, a sense of accomplishment, a life milestone, a stake in the community, and personal pride. The National Housing & Financial Capability Survey from NeighborWorks America reports that Americans believe owning a home provides a sense of safety and security and an increase in financial stability.

Remember owning a home is a life-changing event and will have a big impact. This is a big decision and all options should be well thought out. Using a trusted Realtor can help you with the decision.

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The National Green Building Standard and What I Can Do for Green Renovations on Historical Homes and Buildings

Historical homes are important to our housing market. Renovations on historical homes can be challenging because of surprise damage, regulations and preservation. Take this challenge and top it with making an older home green. This is where National Green Building Standard® (NGBS) comes in handy.

The National Green Building Standard® (NGBS) is a guide to certification for green homes. Chapter 11 in this guide is dedicated to the "Certification for Existing Buildings." Building professionals can use this guide for a comprehensive, voluntary, above-code approach to design and construct residential and mixed-use properties and for land development.  Builders are able to take this guide and use it as a "roadmap for green renovation projects" and match it with historical preservation regulations

Many builders are taking old historic buildings and turning them into residential properties. Things they need to consider are how many units will they include in their design and how much energy and water the proposed property will use versus how much the post-rehab used.

This can be a difficult task however with the NGBS these types of projects have more flexibility. Under the NGBS mandatory, historically designated buildings with historic designation restrictions are exempt from NGBS mandatory practices for unaltered portions. Cargill Falls Mill in Putnam, Connecticut is a great example.

Cargill Falls Mill is located on the Quinebaug River and is deemed a historical building. The property was turned into over nine acres of residential space with 125 units.

Karla Butterfield, NGBS Green Master Verifier, of Steven Winter Associates noted: “As a historically registered landmark, the complex was under strict renovation requirements. The NGBS remodeling program was the only residential tool that allowed the project to quantify the energy and water savings while addressing the great efforts made by the project team to reduce material and resource consumption, improve indoor air quality, address sustainable site strategies, and promote health and wellbeing for residents.”

Old buildings, especially in urban areas, are perfect projects to make into residential space. To learn more about the process visit the National Association of Home Builders site where NAHB’s Sustainability and Green Building efforts are explained. You can also find tips on water efficiency, energy efficiency, indoor air quality, and other building science strategies.

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New Homes Constructed With Central AC Are More Common in Some Regions Than Others

Ninety-five percent of new single-family homes built in 2020 were built with central air conditioning (AC) systems according to the Census Bureau’s Survey of Construction (SOC). Homes with central AC have been increasing since 2000 when there were only 85.5%.

The percentage of new single-family starts with central AC is different in the nine Census divisions. In West South Central, South Atlantic and West North Central divisions 100% had central AC installed, in East South Central 99%, and in East North Central 96%, in New England 83% and the lowest in the Pacific with 80%.

Ninety-nine percent of new single-family homes were built with an air or ground source heat pump or a forced-air system for the primary heating source of the home. As for each division, in the East South Central 77%  air or ground heat pumps were used, in the South Atlantic 75% and in the West South Central 20%. Air or ground heat pumps are primarily used in warmer climates because they are less efficient in colder regions. As for fuel, 50% of new homes built in 2019 used natural gas while only 45 used electricity.

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A Spike in Four or More Bedrooms in New Single Family Homes

The housing market is strong and both resale and new homes are strongly in demand. According to the U.S. Census Bureau Survey of Construction's (SOC) 2020 new single-family homes with four or more bedrooms increased. This trend could be because of more homeowners having to live work and play in their homes due to the pandemic.

The SOC reported that across the country 45.2% of new single-family homes started in 2020 had four or more bedrooms. This was up from 2019's report of 42.6%. Again this increase is due to the shift in buyers' desires in a home. The pandemic devastated the US economy in 2020 paving the road for record low interest rates. The low rates coupled with low housing inventory shot house prices up. First-time homebuyers who would purchase a home with less than four bedrooms were pushed out of the market.

This caused a shift in homes.  The 2020 SOC reduced share of new homes started with 2 bedrooms or less (9.7 percent vs 10.5 percent the previous year) corroborates the lowered presence of first-time homebuyers in the new home market that year.

The East North Central region was the only division that showed a decline in new single-family homes built with four or more bedrooms. Across the board, homes with less than 1,200 square feet had more homes built with fewer bedrooms.

If you are in the market for a new home, contact your local Realtor. A professional Realtor can help you through the whole process getting you what you want for the price you want.

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Awards for Spec Homes That Are Built As Healthy Homes

With a strong housing market and shortage of inventory, many builders have gone from building custom homes to speculative homes only. Builders do have to still target buyers. Smart homes and healthy homes are a way to do this.

The industry leaders report that buyers will pay a premium for energy efficiency, smart home tech and healthy homes. Once the pandemic began, health and energy savings have become even more of an important factor. In fact, former National Association of Home Builders Chairman Randy Noel has turned to building spec only.

Noel, from Reve, Inc., spent 30 years building custom homes only. He is now currently building a spec home for the Home Builders Association of Greater New Orleans' Parade of Homes. The home features products and materials that are efficient, resilient, healthy and smart home tech.

“You can, with a great deal of confidence, build a healthier home for your customers going forward,” Noel stated following the (WWYW) certification process.

Healthy homes are recognized under the pilot the Wellness Within Your Walls (WWYW). There is a list of Healthy Home Features which include:

• Maximizing natural light,
• Detaching the garage from the home and connecting it via a breezeway,
• Installing locking cabinets for pharmaceuticals and garden chemicals,
• Controlling humidity for the outside fresh air being brought into the home and reducing stress on the heat pump,
• Removing contaminants from the incoming utility water through reverse osmosis water filters,
• Installing automatic faucets to reduce touch points,
• Incorporating an electromagnetic field (EMF) control cabinet — the interior of which is painted with a special electromagnetic wave-blocking paint — for electronics charging,
• Integrating automatic vents in the bathroom to exhaust damp air from the home,
• Installing a non-combustible, electric fireplace and induction cooktop,
• Incorporating a kitchen herb wall.

If you are interested in seeing a healthy home, the Home Builders Association of Greater New Orleans' Parade of Home is located in Ashton Plantation in Luling, LA. The home has been given the 2020 Best in American Living Gold Award for Healthy Home and was a finalist for the 2020 NAHB Global Innovation Award International Home the Year.

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Mandeville Will See the Girod Street Stroll This Fall

Typically held in the spring, the Girod Street Stroll has been postponed due to COVID-19 and will now be held in the fall. The event is held annually by the Old Mandeville Business Association.

This year the Girod Street Stroll is presented by Resource Bank and will take place on September 25, 2021 from 5pm - 9pm in Old Mandeville. The activities take place starting at Girod Street at the Mandeville Trailhead and following along to the Lakefront. Live music and entertainment will be by 10th Street Brass.

Patrons will be able to stroll to over twenty stops and enjoy small bite plates by local Mandeville chefs and cocktails. Participants of the event can vote for the best small plate and cocktail. There will also be a raffle of a live painting that will be created by artist Andrew Wilkie.

"It is one of Mandeville's most popular annual events, as it showcases our local businesses and restaurants, our artists community, and our vibrant culture," OMBA Board Member Andre Judice said.

The Old Mandeville Business Association (OMBA) is a non-profit that is made up of both businesses and residences of Old Mandeville. The goal is to serve and support the local commerce while preserving and promoting the charm and beauty of the community.

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