How To Create an All-Tile Bathroom

 Tile can last throughout time in bathroom designs and really never goes out of style. Tile can make it easy to clean your space. “The appeal of an all-tile bathroom is multifaceted. The look conveys luxury and is on trend right now,” says designer Morgan Farrow of Morgan Farrow Interiors. Here are several tips when creating an all-tile bathroom. 

Pick your look.

“I first consider how the space is being used. A Jack-and-Jill bathroom shared by siblings should be treated differently than a primary bathroom shared by siblings should be treated differently than a primary bathroom used by adults, both in terms of materials and colors,” explains Tess Twiehaus of Tess Interiors.

If you are focusing on a kid’s space, start with using ceramic or porcelain tiles which are the least expensive. They are easy to clean and kid-tolerable. For a master bathroom, going with a higher-end tile like marble or travertine is a plus. They do require more maintenance so be picky about where you install. Tile shops around offer tons of materials from natural stone to ceramic to porcelain. They come in all shapes, sizes and colors.

Mix it up.

“We love mixing tiles, and often use two or three in a single space,” says Farrow. You do not have to worry about the colors and textures clashing but you just have to make sure the color tone in tiles that will be adjacent meshes.

“The benefit is that mixing allows you to get layers of color and pattern,”says Farrow. You can mix and match high-end pieces with budget-friendly pieces to help with the cost.

An accent tile can add intrigue but isn’t required.

When adding an accent tile, it can brighten the space and elevate the room. This is just a bonus but you do not have to add accents to have a great-looking space. Remember that there’s no need to check every box on some imaginary design checklist. “If the room feels special with it, then go for it. But if the addition feels random, take it out,” adds Farrow.

Don’t underestimate your order.

This can be a little tricky because you do not want to order too much tile or not have enough. A rule that Twiehaus offers is to order 20% more than you think you will need. “I wouldn’t stress about it being too much. You will absolutely need extra tile in case you have a discoloration or a few pieces break,” she says. You want to confirm with your designer about any specifications before you order.

Following these tips can be a great way to get your bathroom up -to-date in a great style that is easier to maintain and clean.

 

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Six Musts Before You Buy a Home

 Purchasing a home is one of life’s biggest adventures and you want to make sure your decision is the best for the long run. This is why it is so important to do these six important things before you take the plunge into homeownership.

Figure out how much home you can afford

You do not want to be house poor, which means you purchased a home that you really cannot afford. A good rule of thumb is to never spend more than 30% of your take home pay on a home. This means that it not only includes the price of the home, but also things like mortgage interest, taxes, insurance, maintenance and renovations. Some professionals in the industry also advise not to spend over 28% of your gross monthly income on housing costs and no more than 36% on total debt. They call this the 28/36 rule.

When a mortgage lender wants to see how much you can afford, they usually use the 28/36 rule. You do not want to exceed more with your debt-to-income ratio. If this happens you will end up paying a higher interest rate if you even are qualified for a mortgage.

Budget for closing costs

Closing costs can be different for different areas of the country and the different loans that are available. If you purchase a home for $250,000, you will need to come up with around $5,000 to $17,500 for closing costs. Closing costs include a charge for obtaining your credit score, application fee, property taxes, appraisal fee, loan interest, homeowners insurance and title insurance.

“The biggest mistake that first time homeowners make is they forget that they need closing costs – not just the down payment of say 10% or 20%,” says Barbara Corcoran.

Save for a down payment

There are some loans out there that do not require a down payment, but these are far and few in between. Usually a down payment is the buyer’s choice of how much they want to put down. Just remember, that the less you put down up front, the more the mortgage loan will be which will make your payments higher. Most in the industry will suggest at least a 20% down payment which will clear you of any private mortgage insurance.

Check your credit score

Your credit score can be the ticket to a mortgage and good rates. “This is the number that mortgage lenders will look at to determine whether you are creditworthy, and thus dictates whether you’ll qualify for a home loan, and the rates you will get. Major lenders often require a minimum credit score of at least 620, if not more,” reports Realtor.com.

Get pre-approved for a mortgage

This is a must when it comes to making an offer. A pre-approval lets a seller know you can afford their home and you mean business. “In hot markets, mortgage pre-approval is almost required for a seller to take your offer seriously. That’s because it spells out exactly how much a lender has agreed to loan you, thus assuring the seller that you’r both willing and able,” says Realtor.com.

Make sure the neighborhood is a good fit

You want to be able to grow into your home and your neighborhood. Getting to know the area is a must. You would hate to move in and not be able to sleep the first night because of a street light outside your bedroom window. “You’re not just buying the property you’re looking at. You’re also buying into the whole neighborhood. That’s why you have to be certain that it has the vibe and amenities you want,” explains Realtor.com.

A Realtor can help you through the home buying process from start to finish. A real estate agent knows the ends and outs of the current market and will help your buying process be a huge success.

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Vapor Barriers in New Home Builds

 Vapor barriers are an important part when it comes to building a home. Here is some science behind the reason why.

There are six sides of a new construction home which are in three categories, the walls, the roof and the foundation. All of these sides need to be protected from both liquid water and vapor water.

The side of every new construction home consists of a building envelope. This is where we want to keep moving such as liquid water, air, water vapor and thermal energy. There are several ways that water can sneak into your home. By liquid progress (wind-driven rain hitting up against walls), water vapor diffusion (movement of water vapor and its concentration level), and airflow (movement of air and its pressure levels).

A vapor barrier does not only need to block these areas but needs to also control the movement through them. This is done by using an air barrier (the material layer that will prevent the flow of air between air-conditioned air to unconditioned air), water-resistive barrier WRB (this material layer prevents liquid water from seeping into the house), waterproofing (this is a system that helps prevent and manage build liquid water infiltration), vapor retarder (a material layer that stops water vapor movement by diffusing it), insulation (the material layer that is used to help with the loss or gain of thermal energy).

So basically the goal is to keep your building’s envelope dry, efficient, comfortable and healthy. Remember there are different ways to control water, air, vapor and heat. Here are the reasons why, they all can move in or out of a home in both directions, they can move at different rates and degrees, and they can affect each other.

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A New Mandeville Lakefront Development

 A new age-restricted community was approved called Sucette Harbor which will house 201-unit apartments, an events venue, restaurant, marina and an 82-room boutique hotel all along Mandeville’s lakefront. The Mandeville Planning and Zoning Commission approved the plans so now it will be up to the Mandeville City Council to say yes to the 55 and older development.

The land is being leased by Woodward Interests, who is the developer, from LSU Health Foundation. Al Copeland’s family dedicated the land to the LSU Health Foundation. The proceeds from the leased property will be split up with 60% going to cancer research and 40% going to scholarships.

Although the development will help with a good cause, residents in Mandeville have some questions and concerns. There is a concern out there that the development would attract enough older residents to the area that qualify to live in the age-restricted apartments. Another big concern is the traffic it will bring to the community and the removal of old southern oaks.

Many commission members are also concerned about the project. Claire Durio suggested reducing the size of the hotel but this was shot down. Mike Pierce also agrees that the project might be too big for the community calling Sucette Harbor an anomaly that doesn’t fit with the older surrounding neighborhoods and fails on compatibility.

Other commission members say the development will be an asset to the community. Nixon Adams feels that it is a better option than just leaving the land vacant. He says that the area needs a hotel because there is not one in the area. He also suggested the city bring a walking and biking path to the lakefront which will open up the lakefront.

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Questions To Ask Your Homebuilder When It Comes to the Foundation

 It is a great adventure to take when it comes to building a new home. There are many exciting decisions to make on building materials, floorplans, etc. The home’s foundation is not one of the components that most homeowners want to think about. The foundation is what your home is literally built on and is the most critical part of the home-building process. Since you only get one chance to do it right, the professionals in the industry suggest asking your building these five questions.

1. What type of foundation will I have for my home?

There are three foundation types to choose from, slab-on-grade, crawl space or basement. Some homes found around the country can have a combination of the types of foundations. The foundation of your home will be based on where you live, the climate, and the local soil and moisture conditions. If you live in a colder climate, then the frost line will be important to factor into your decision-making.

When determining the foundation type, your builder can use a geotechnical report to help with the decision on what foundation is best. A geotechnical report will provide the builder with soil data to ensure that the appropriate design is used. In all three options, moisture management is the key.

2. How will my home be protected from liquid water?

As mentioned before, moisture management is the key. The goal is to keep liquid water out of your home. Moisture seeping through into your home, can hurt the foundation, dampen your comfort level and cause a potential health problem. Water doesn’t just come from mother nature, in some climates bulk water pressure from a water table going up and down can cause problems as well as landscaping irrigation.

There are many ways your builder can design your foundation area and products they can use to help repel liquid moisture. There are different building codes in specific areas around the country. Your builder will be familiar with your areas’ minimum building code requirements. You will want to always make sure you have the proper grading around your home so that water never becomes a hindrance.

3. How will my home be protected from soil vapor?

Soil vapor can seep into any type of foundation in any location into a home’s envelope. The natural flow of water vapor is to move from greater concentration to lesser concentration called diffusion. Your foundation needs to be checked to make sure this is not happening. If it goes unchecked, it can lead to issues with floor coverings, coating failures, mold growth and overall poor indoor quality. It can also cause your HVAC system to not run properly.

Water vapor can be just as menacing as liquid water but protecting your home from water vapor is different from protecting your home from liquid water. Remember to ask your home builder what steps they will take to make sure there is no diffusion of water vapor under your home. Builders can use a water vapor barrier under a slab foundation or overexposed earth in a crawl space.

4. What about comfort and efficiency?

A home needs to be both comfortable to live in and energy efficient. Homeowners turn to solar panels, air conditioning and insulation to make a home more energy efficient. The comfort level in your home actually starts below the living space. If you live in a colder climate, then the home’s foundation will need to be insulated. Even if you live in a milder climate, having your foundation insulated can help maintain comfortable temperatures and keep utility bills down.

5. What products do you use?

Choosing the right products can make a huge impact. Choosing the correct foundation is a big deal because it is hard to replace a foundation once it is installed. If you do have to replace a foundation, it is very costly and can affect other systems throughout your home.

Builders know all the ends and outs of the foundation systems they use in their area. They can explain to you how they work and if they have a warranty or if your home buyer warranty package includes the foundation.

Remember the construction of the foundation of your home is very important. Talk with your builder and get familiar with the choices. Understanding what goes on with the foundation helps to give you peace of mind to know that everything is working as it should.

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What Questions To Ask Before Purchasing a Home

 No matter if you are a first-time homebuyer or this is one of many home purchases, it can be an exciting time.  According to the National Association of Realtors, homeowners stay in their homes an average of 8 years before moving. Purchasing a home is a long-term investment, and you should take a moment to ask yourself these questions before making the purchase.

1. What can I comfortably afford?

When you are considering what is comfortable for you to spend each month, this doesn’t just include your mortgage payment, but other home expenses as well. These additional expenses include taxes, homeowner’s insurance, homeowner’s association dues, utility cost and maintenance. A good rule to follow is to make sure that all your expenses which include your total house payment, taxes and insurance should be below 28% of your gross monthly income.

2. Which loans do I qualify for?

In order to figure this out, you will need to already have a lender. Your lender can go through all of the options and help you weigh the pros and cons of each. For example, if you want to have a monthly payment that stays the same, you would want to go with a conventional fixed-rate mortgage.

3. How much will you need for your down payment?

A lender can help factor in what kind of loans you will qualify for which in turn will determine your down payment. A VA loan requires a low down payment and in some circumstances no down payment at all. Other loans such as a conventional loan like to have a 20% of the home’s purchase price as a downpayment. On some loans, a higher down payment can lower your monthly payments and your interest rate.

4. What’s PMI? Do I have to pay it?

PMI is also known as private mortgage insurance and is required on many loans if the down payment is less than 20% of the home’s sale price. For example, if you do obtain a conventional loan and put less than 20% down, you will also have to pay PMI. Once you pay your loan down, your PMI can come off.

5. What interest rate do I qualify for? How can I lower it?

Your mortgage interest rate is very important in the life of your loan as it has a direct impact on your monthly payment. When you are shopping around for a lender, compare their APR (annual percentage rate) and their lender fees. Once you have chosen a lender, they can help you with ways to lower your interest rate.

6. What will my monthly payment be?

A lender can estimate your monthly payment based on the purchase price of a home, your down payment and your interest rate. There are also tons of monthly mortgage payment calculators online that can help you with a ballpark figure of how much you will pay a month.

7. What are the closing costs?

Closing costs include origination fees, discount points, appraisal, document preparation, title insurance, and home inspection. Closing costs run anywhere from 2% to 5% of your loan amount. Before you close on your home, your lender will provide you with an itemized list of estimated closing costs.

8. How long will the closing process take?

You want to make sure to give yourself enough time to get your financing in order, so put a reasonable closing date on your offer. Obtaining financing and getting everything in order for your home to close can take between 30 to 60 days.

If you are in the market for a new home, now is a great time to ask a real estate agent for their expertise. They can not only help you with the home-buying process, but will also be able to direct to a good lender.

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Several Reasons To Purchase a Home This Winter

 It has been said that springtime is the perfect time to buy or sell a home, but is this always the case? Not necessarily, while springtime is the most popular time, winter months can work in a home buyer’s or seller’s favor. This can include having more time on your side to decide, not as much competition, and real estate agents have more time to focus on just you. Here are several reasons that this winter might be the right time to purchase a home.

1. Winter-Tested Houses

The winter brings harsh cold weather to most every area in the US. During the harsher cold weather, a home inspector can see the home’s flaws a little better. If you close on a home in the summer, you might have some surprises in store next winter. Professionals in the industry will tell you that the best time for a property inspection is during the rain and snow.

2. Motivate Sellers

Inventory is fairly low and slow in the winter. If someone puts their home on the market in the winter it usually means they are a motivated seller. If you are in the market for a new home, sellers will be more prone to accept offers and negotiate more on the price and closing costs during the slow winter months.

3. Fewer Buyers

The winter months are a great time to hibernate indoors so to speak. This means that there are fewer buyers out there during the colder months that are looking for a home to buy. You definitely will have less competition in the housing market during the winter. This means you can take your time and make sure you are not rushed into making an offer.

4. Available Realtors

Since winter is considered an “off-season” for realtors, this means that realtors have more time on their hands to devote to you and your search. A realtor will not only be able to devote more time but also support your specific home search.

5. Discounting Movers

Colder winter months are also slow for professional movers. This means that many movers might give company discounts for their services during this time. Since they will also have a lighter schedule, they will have more free time so they should be able to accommodate when you would like to move.

If you are ready to move before the spring, contact a local real estate agent who can help you with the home-buying process. A realtor can not only find you the home of your dreams but can get it at the right price and right terms.

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What To Do and Not To Do When Choosing a New Garage Door

 A garage is an important part of a home, in fact, it is front and center and plays a big part in a home's curb appeal. Replacing an old garage door can give you curb appeal a big lift. Not only will it look better, but it will also perform better. Here are some do's and don'ts when it comes to choosing a new garage door.

DO select the right style.

A home's curb appeal is important when it comes to resale. A worn-out garage is not a good first impression to a potential home buyer. Replacing a garage door will enhance the exterior of your whole home. It is very important to choose the right style of door. The most important tip is to choose a door style that complements your house. If you have a Craftsman bungalow, then you would want a door with deeply overhanging eaves, extensive woodwork, and divided-light windows. If you have a modern home you will want a simple garage door with clean lines.

DON’T forget insulation.

Many homeowners skip the front door and use their garage door as their primary entrance. If this is the case, then it is a good idea to insulate the garage door. Insulation will allow a more comfortable garage when entering and exiting your home. A garage is usually 10 to 20 degrees different from the temp outside. This is a big opening in your home, and insulating it can also save you money on energy expenses. A room next or above a poorly insulated garage will be very hot in the summer and very cold in the winter.

DO choose a practical door type.

Just like there are different styles of garage doors, there are also different types of garage doors. Some homeowners want to have a traditional swinging door that opens outward from a central split or others want an old barn door that opens right to left. The most popular are overhead sectional doors because they roll up and down on mounted racks and are easy to pair with an automatic door opener.

DON’T ignore care requirements.

The garage door is one of the most important entryways of a home. It needs to be maintained properly and perform its bests. Wood garage doors are very popular nowadays but they require refinishing. If you want the wood look, composite is the way to do it. Steel is a good choice no matter what climate you live in.  Understand the upkeep requirements of any door on your radar, and don’t commit to purchase one that you’re unable or unwilling to take care of.

DON’T underestimate severe storms.

Even though a garage door is big, a storm can still hurt it. They can be very vulnerable to high winds such as a tornado or hurricane which can break through a garage door. It is important to become familiar with the code-compliant doors. A local garage door dealer can tell you what the regulations are in your area.

DO experiment with visualization tools.

A dealer showroom is a great place to start. There you can see how different styles, construction and colors actually look and feel. There are also online tools that can help you visualize a certain door on your home. A great online tool is the Door Imagination System. You can simply upload a picture of your home and see different designs, colors and hardware on your home.

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Questions to Ask When Buying A Home

Buying a home is a huge deal in anyone's life. It is said to be one of the most stressful times in someone's life. Here are some questions to ask to help you make an informed decision when it comes to buying a home.

Is now the time to buy a home?

Again this is one of the most important purchases a homeowner will ever make. Determining to take the leap of homeownership, is one of the most important financial decisions to make. Make sure your finances are in order before you decide to start your home search.

Are you ready to invest in a home?

A home is a wonderful investment, however, it is a big expensive one. Assess where you are in your life, is homeownership right for you? Make sure you want to stay in the home. Selling a house right after you purchase it will cost you a good bit of money.

Do you have a target home price?

Currently, we are in a seller's market which means homes are going to have multiple bids and sell at higher asking prices. December 2021 reported the median home price in the country was up 15.1% higher than the same time last year. Before you start your search, find a number that you are comfortable with and stick with it.

Do you have enough savings?

Purchasing a home is not just paying the listing price. You need to have some savings not only set aside for any home updates or projects but also for other costs associated with purchasing a home. Here are some of the costs associated with buying a home. You will need 3-5% of the purchase price for a downpayment and money for closing costs and inspection fees.

Do you have credit concerns?

In order to obtain a mortgage, you will need a good credit score. By rule of thumb, anything under a 620 will not qualify. Anything between 620 - 740 will get you qualified but with a higher rate. Anything over a 740 will not only get you qualified but will get you the best available rates.

Do you have money allocated for unexpected costs?

Don't get caught off guard by surprise costs through the process of buying a home. Remember inspections, insurance, taxes, and utilites. The more informed you are, the better decision you will make. Contact a Realtor who knows the process from start to finish.

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The West Bank Will See 154 New Homes Thanks to Habitat For Humanity and One Gracious Donor

 Habitat for Humanity is building a new 154-home community close to Terrytown. The New Orleans affiliate says this is the largest-ever project that they have built in the New Orleans metro area. Fifty of the homes will be built for people 55 or older.

Billionaire philanthropist MacKenzie Scott has given the local Habitat for Humanity $4.5 million for the project. Marguerite Oestreicher, executive director of the local chapter, praised Scott for her generosity. In fact, Scott's donation is the largest donation both the local and national Habit organizations have ever been given.

"When you get a transformative gift like this it gives you an opportunity to innovate," said Oestreicher.

The new community will be located on the property site that was formerly Plantation Golf & Country Club. The 44-acre tract is off Behrman Highway and is planned to be called Rising Oaks. The $56 million project will be developed by Woodward Design & Build along with architect Garrity & Accardo.

The neighborhood will consist of a mix of two, three, and four-bedroom homes. The remaining 50 homes will be cottage-style homes for older residents. The remaining land will house a community center and retail center, including a health center, restaurant, pet store, bank, and many other retailers.

This will be one of the first projects Habitat has started from the ground up in the area. It was a rare opportunity for the chapter to build a live, work, and play community from scratch.

"It has allowed us to plan a community that is livable, walkable, green, and beautiful," she said.

In order to be allowed to live in these mid-century architecture homes, you will have to qualify. Residents will qualify if their income is between 30% and 80% of the median New Orleans income which is around $20,000 to $57,000 a year.

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Five New Rules To Follow When Purchasing A Home In This Current Red-hot Market

 The COVID-19 pandemic played a large part in the current strong housing market. Bidding wars have been predominant for the past year and a half. Now that the interest rates are starting to rise, the competition is getting even stronger. Here are five new rules to follow when buying a home in 2022.

1. Lock in a mortgage before you start your search

In the past, homebuyers would find a home and then get pre-approved. This is not the case in 2022 because of the strong demand. This fast-paced market makes it essential to get pre-approved before you start the homes search process.

“You should be pre-approved by a lender and knowledgeable about your finances before you even begin your home search,” says Beverly Burris, an agent with William Means Real Estate in Charleston, SC. “With houses going under contract as quickly as they are right now, often within days or sometimes hours of going to market, there is no sense in going to see a property before speaking to a lender and learning what you can afford.”

2. Shop for homes priced below what you can afford

Once you get pre-approved you then know how much you can afford. Homebuyers in the past have purchased a home on the high end of their mortgage approval and that resulted in a recession. Today, homebuyers are encouraged to purchase a home below the top of their price range.

“These days, houses are selling for more than their list price and, as a buyer, you’re more than likely going to end up in a bidding war,” Lori Ozley, a manager with Birmingham HomeBuyers explains. “If you look at properties that are under your budget, you’ll have room to submit a competitive offer that goes above the asking price.”

3. If you love a property, act fast

Purchasing a home is a big deal so most homebuyers want to think on it before they make the big leap. Today's market does not afford homebuyers this luxury.

“If you are interested in a property, you must act quickly or you risk losing out to another offer. When you really like a property, you should sit down with your real estate agent, go through the comp research, and work on putting together an offer the very same day,” says Bill Samuel, the agent and investor behind Blue Ladder Development.

4. Put your big number out there from the start

When it comes to purchasing property, negotiations have always been part of the process. This is not the case today in this hot market. Homebuyers need to put their best offer forward at first.

“Be prepared to make your best and final offer from the beginning,” advises Jodi Dougherty, a luxury broker at Downtown Realty Company in Chicago. “Since sellers often receive multiple full-price offers, you may not get an opportunity to counteroffer if you come in too low.”

5. It will probably take multiple tries before you succeed

Don't give up, there are tons of other homebuyers looking at the same homes in the same market. It might take more than once to put your best foot forward and have your offer accepted.

‘You can almost plan on having several offers not go through before one is accepted,” explains Brian Chinn, leader of the Brian Chinn Team at Newberry Real Estate in Tyler, TX. “While that isn’t always the case, it happens more often than not in this market.”

If you are interested in purchasing a new home, contact a Realtor who can help you through the process. “It’s easy to get frustrated,” Chinn adds, “but having patience is key.”

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Tips To Follow When Purchasing a Home in the Current Market

While today's housing market is not in the buyer's favor, people are still purchasing homes. Most potential buyers will need a mortgage and there are many steps to this process. When deciding if this step is right for you, take into consideration the following things regarding the process.

Now may still be a good time to buy a home

This is a personal decision, there is no right or wrong time to purchase a home in general. Whether a buyer's market or a seller's market you should take the leap when it makes the best sense in your life. Ann Thomspon, with Bank of America, says that consumers will always want to purchase a home and need to purchase a home.

Especially with the changes we have seen in the last year due to COVID-19, our home has become our live, work and play space. People have placed a greater emphasis on the value of a home.

“A second bedroom that can be used as a home office, or an outdoor space, are now more desired, prompting many people to move or buy for the first time,” says Rick Rudman, CEO at Curbio, a home renovation technology company.

Get pre-approved ASAP

The first step before even looking at listings is to see how much home you can afford. Pre-approval is the first step to let you know what you can afford and to prove to others that you are financially able.

In the current seller's market, a buyer needs to prove to agents and sellers that they are serious. “These days, in some markets, you need a pre-approval just to start looking at homes,” says Ann Thompson, retail sales executive of the West with Bank of America.

Prepare for bidding wars ahead of time

A seller's market means bidding wars are inevitable. The record-low mortgage rates coupled with low inventory is causing a panic among buyers. Sellers are entertaining multiple offers, many receiving multiple all-cash offers.

“Potential buyers now should prepare themselves by discussing, with their real estate agent, how much a home is worth beforehand, so that they can go into a bidding war with the strongest offer tactics, while also knowing when to back away if the price escalates,” says Thompson.

Understand appraisal gaps

With bidding wars comes bids over the asking price. These high bids cause appraisal gaps. An appraisal gap is a disparity between the offer you put on a property and what the property is deemed to be worth by a lender.  Even if you are approved for $350,000 and you offer $350,000 on a $300,000 listing price that doesn't mean the lender will give you the full $350,000 on the home. If the appraisal comes in at $300,000, you will have to come up with the $50,000 out of pocket.

“In this market, we are seeing a lot of appraisal gaps being written into contracts. Please be sure to understand how that works before agreeing to it,” says Shanon Schinkel, branch manager and mortgage lender at HomeTown. “Also, check with your lender before agreeing to it. Using that money for an appraisal gap can change your ability to qualify.”

Keep track of changing rates and terms

Today's mortgage rates are beginning to rise and the historical low rates we have seen in the last year will be a thing of the past. Schinkel reports that over the last six weeks, the rates have crept up. You will want to keep track of where the rates are and where they will be going during your home buying process. Shop around for rates and terms for the best deal.

Research down payment assistance programs

This market is hard for buyers but especially challenging for new home buyers. Down payment assistant programs can help. There are programs offered through government organizations and private agencies. You will want to research all of these avenues to see if you are eligible.

“There is a shortage of houses in many markets. This is creating bidding wars, offers over asking, and appraisal gaps—houses are going quickly,” says Schinkel. “But there are still many great opportunities if you’re patient and have a great real estate agent and lender.”

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Suburbs Are The Place To Be

 The National Association of Home Builders NAHB recently did a survey that revealed 25% of home buyers have changed their home buying preferences due to COVID-19. The survey found that home buyers are looking to the suburbs because of the health crisis. Thiry percent of buyers are seeking a home in the outlying suburbs. Before the pandemic, only 26% of home buyers wanted to purchase a home in the suburbs.

This does not bode for other locations. All of the other location points saw no change or small declines in buyer's preferences after the onset of COVID-19. Rural areas went from 24% down to 23%, downtown in a central city, dwindle from 12% to 11% and those who desired a home in the central city outside of downtown remained at 9%.

Buyers should enlist the help of a Realtor. A local sales agent will know the suburbs and can help you find the perfect home of your dreams. They will be able to help find a home in the perfect community for the perfect price.

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New Challenges For New Home Construction

The housing market began with a bang in 2021 but with the demand for new homes came some uncertain challenges. Builder's confidence is strong with such buyer's high demand. The shortage in home inventory and low mortgage rates coupled with buyer's high interest and a new generation of buyers hitting their peak home-buying years makes for a great time for new home construction.

Zillow reported in their New Construction Consumer Housing Trends Report 2020 that 40% of those buyers who purchased a new construction build, were only interested in buying a new construction home. On the negative side, these new construction buyers hit more obstacles this year than in the past.

Close to half (45%) new construction buyers are under 40 years of age and 70% of new construction home buyers are first-time home purchasers. This shift in demographics has changed what a first-time home buyer might find challenging and what this demographic might struggle with.

This young generation struggled with several top challenges during the purchasing process. A fair price for a home seems to be a challenge. It was sighted that 30% of new construction buyers found that determining a fair price for a home was hard in 2019 and this rose to 37% in 2020. Many blame COVID-19 for this reason. The transaction of coordinating the build of a new home with the sale of their current home was also hard to handle for 36% of new construction home buyers.

The relationship between the sales agent and the home builder has become extremely important. In 2019 84% of new construction home buyers relied on their sales agent to communicate with the builder. In 2020 this rose to 90% which was a 17 point increase over last year.

Challenges can be overcome with help from a Realtor. A Realtor can help a buyer with pricing and financing. They can also be a great mediator between the buyer and home builder. A professional sales agent will help both the building process and purchasing process become an easy streamlined process.

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High Demand in Housing Is Having a Direct Effect on the Market

 The pandemic has changed the way people view their homes. From the stay-at-home orders to the scare of spreading the virus, the home is everyone’s safe haven. Luckily today’s technology has enabled many Americans to work from home. More and more people are reassessing what they want in a home such as a home office, flex space and outdoor living space.

The housing market is booming in fact, home sales are higher than they were before the pandemic. The

existing and new home sales are the highest level we have seen in over a decade. With the increase in home sales, comes an increase in the demand for building materials and labor.

Lumber has been in very high demand during recent months. Not only are builders building new homes but many homeowners are remodeling their current homes. Home offices and remote work locations have also spiked the demand for this hot commodity. The November 2020 Random Length Lumber contract shows a low set during the height of COVID in April at 277 but then in August lumber was set at 820.

The copper market has also been greatly affected by the booming housing market. Looking at the September 2020 copper futures contract, we witness a low set on March 19 at 1.99, followed by a big move up to 3.08 by September 15. Copper is also valuable to the technology industry where it is used for building servers, semiconductors and switches.

Currently, sales of single-family homes are up 24% from the spring, existing condominiums and co-ops are up 32%. Lumber and copper numbers are a great way to measure and predict the direction the housing industry will go, knowing which markets are directly affected by the growing demand for single-family units can be important for every trader and investor.

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