September Reported A Jump in Homebuilding

 According to CNN, US homebuilding is on the rebound. This comes after the drop seen in August of what was reported the lowest levels since 2020. This can be blamed mostly on the climbing mortgage rates. 

September saw a 7% jump in new home construction housing starts. The housing starts measure new home construction and rose to a seasonally adjusted annual rate of 1.358 million. The Census Bureau predicted a rate of 1.38 million, higher than data proved.

The number of units was also lower than a year ago by 7.2% as well as the building permits at the same 7.2%. Building permits declined 4.4% in September to a seasonally adjusted annual rate of 1.473 million.

“September numbers were a mixed bag, with starts up and permits down, but both remain low by historical standards, suppressed by high mortgage rates,” said Robert Frick, corporate economist with Navy Federal Credit Union.

“Builders continue constructing smaller homes using less land, and offering incentives, but to build our way out of the housing shortage we’ll need mortgage rates well below current levels,” he said.

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What A Home Inspection Covers

 Once you find your dream home, you now need to do your due diligence before closing. Part of your due diligence is the home inspection. A home inspection is a professional evaluation of the property. There are many important parts of a home inspection, so it is important to know what is covered during a home inspection.

Foundation, Basement, and Structural Components

The foundation of your home is one of the biggest aspects that must be up to standards. A firm, sound foundation ensures a safe and long life for a home. An inspector wants to make sure your home’s foundation is in tip-top condition. In order to do this, they will look for problems with the foundation, including signs of cracking, shifting, or settling. If you have a basement, they will look for correctly installed insulation and ventilation and signs of structural damage, decay or water intrusion. Structural components in your home such as beams, posts and all load-bearing structures also need to be inspected.

Interior Plumbing and Electrical System

Your home will not run if these systems aren’t in check. When a home inspector checks these systems they will test all faucets and showers for pressure and drainage. They will also make sure there are no damaged pipes or leaking pipes. For electrical, they will make sure the electrical panel has proper labeling, ground and capacity. They will also make sure that all of the outlets, switches, and fixtures are working.

Roof and Rain Gutters

If your roof is not in working order, then you and your home is not protected from the outside elements. A roof inspection will make sure there is no damaged, missing or curling shingles. Water also needs to be directed away from your home. An inspector will make sure your flashing around your chimney and vents is installed correctly along with examining your gutters and downspouts. They will make sure there is proper drainage and no blockages.

Attic and Visible Insulation

The inspector will make sure the heating system is in working order. They will test the system and check for gas leaks or blockages in the flues.

Central Air Conditioning System

If the weather permits, the central air conditioning system will be inspected. An inspector will make sure it cools, the filters and vents are in order and there are no blockages or damage.

Windows and Doors

Another part of your home that can keep the outdoor elements outside and not in. An inspector will make sure they are insulated properly and open and close properly. They will test the windows and doors for safety. Another thing they will look for is rotted or damaged frames as well as broken locks.

Walls, Ceilings, and Floors

The inspector will check the walls for cracks, holes, or any other damaged spots. They will make sure there is no mold, mildew, or water damage along the ceiling or walls. They will make sure that the floors are level and stable with no cracks, creaking or structural issues.

Remember that having a home inspection is a must when you purchase a home. Understanding what is included in a home inspection will help you along wiht your due diligence.

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Mandeville Development May Soon Be Used for New Homes

 

The housing market is booming and inventory is still low. Developers want to take advantage of this on some wetlands just west of Lewisburg Estates close to Mandeville. The wetlands are located at the mouth of the Chinchuba Bayou flood plan that is made up of marsh grasses and cypress trees.

The current landowners have applied for a coastal use permit through St. Tammany parish. This coast permit would allow them to fill in the wetland site and lake bottom. Their plan is to add a bulkhead and a private road. This would be the first step in developing the land for future homesites.

Many in the community are distraught about the thought of future development on the wetlands. Filling the lake in would lead to flooding and change the ecological landscape that could hurt the community.

According to John Lopez, a coastal scientist who reviewed the permit for the development for the Lewisburg Civic Association, says that it could cause flooding in the Mandeville area. He confirmed that the wetlands are healthy enough to allow cypress trees to grow but should not be developed.

He reported that if the wetland is developed, the filled land would slow down the water’s exit from the Bayou Chinchuba watershed into Lake Pontchartrain. A bulkhead could also exacerbate erosion in adjacent areas.

State environmental agencies also report a negative impact. The filled land would replace 2.5 acres of shallow intertidal habitat that is home to submerged aquatic vegetation and where Indian manatees also call home. The Indian manatee is a threatened species already.

The state Department of Natural Resources did a biological investigation report for the project. Their findings indicated that there are plenty of other lakefront properties that are available to develop in the same area.

“Each little slice of shoreline, marsh and productive waters taken away hurts the lake, the aquatic culture, and the birds and animals whose lives depend on this type of habitat," David Lawton, a Lewisburg resident communicated.

This piece of wetland has been in discussion for decades. Many developers have wanted to develop the property but have not gone through the plans due to opposition from residents, environmental groups and local and state officials.

“Everybody wants a piece of paradise. There ain’t enough paradise to go around anymore so you got to create paradise out of the wetlands and the marsh,” Ted Ralph, a nearby resident and retired federal engineer, said as he pointed out the site of the proposed development from his fishing boat.

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Another Gain In Single Family and Multifamily Permits

 

The U.S. housing market is still going strong. According to the National Association of Home Builders, the total number of single-family permits issued year-to-date nationwide reached 276,110 in March, up 25.3% over the March 2020 level of 220,416 and total number of multifamily permits issued year-to-date nationwide reached 131,227 in March, up 20.4% over the March 2020 level of 108,977.

Single-family permits were high in all four regions. The Midwest reported a 40% increase, next the Northeast with a 27.3% increase, followed by the West with a 23.9% increase and the South saw a 23.1% increase. There was also an increase in 49 states and the District of Columbia.

The highest growth rate was 300% from 20 to 80 in the District of Columbia between March 2020 YTD and March 2021 YTD. The top 10 states on the list accounted for a total of 62.8% of the total single-family permits issued. The top 10 metropolitan areas with the highest number of single-family home permits were Dallas-Fort Worth-Arlington (13,094), Houston-The Woodlands-Sugarland (12,745) and Austin-Round Rock (6,189), and two were in Florida; Tampa-St. Petersburg-Clearwater (5,219) and Jacksonville (3,391).

All four regions also saw a gain in multifamily permits in March 2021. The South reported the highest at 22.1%, the Northeast 21.3%, the West 20.3% and the Midwest 13.5% increase. During the time between March 2020 YTD and March 2021 YTD 36 states saw an increase in multifamily permits.

The highest was seen in New Mexico with an increase of 1,267.7%. The top 10 metropolitan areas with the highest number of multifamily home permits were New York-Newark-Jersey City, NY-NJ-PA (9,222), Austin-Round Rock, TX (7,359), Los Angeles-Long Beach-Anaheim, CA (6,661), Dallas-Fort Worth-Arlington,TX (5.594), Seattle-Tacoma-Bellevue, WA (5,555), Washington-Arlington-Alexandria, DC-VA-MD-WV (5,183), Philadelphia-Camden-Wilmington, PA-NJ-DE-ME (3,881), Phoenix-Mesa-Scottsdale, AZ (3,095) and Nashville-Davidson-Murfreesboro-Franklin, TN (2,888).

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Employment is Rising and Single-Family Homes Are Under Construction

New jobs reports and the falling unemployment rate have brought about a positive economic outlook of many Americans in the U.S. The employment growth is a big reason for both the real estate and housing industries’ latest boom both with new construction homes for sale as well as resale homes for sale. The strong job reports have encouraged many to believe there is not a “double dip” recession looming so many are relieved and feel confident in purchasing a new home. Everything from apartment buildings (multi-family homes) to single-family homes are under construction everywhere you turn in the country.

The rise in household formation by millenials as well college grads that have finally been able to get a job has led to new houses being built which has attracted workers in the construction industry. Employment in the field of construction reflects an average of 20% of the jobs that have been recently created. The American Association of General Contractors showed 80% of construction firms planned to hire this year. JOLTS survey showed an increase of 36% in the number of construction job openings year-over-year.

Mark Vintner, senior economist at Wells Fargo Securities says, “Home building will be one of the economy’s largest upside surprises in 2015.”

This is very good news for those looking for employment in the construction industry. Contractors are desperately seeking those who are skilled in all areas of construction which include part time and full time employees as well as sub-contractors. Vintner points out that overall, nationwide, there is a shortage of skilled construction workers. The American Association of General Contractors also reports that 87% of construction firms are having difficulty filling positions. Moody’s Analytics Adam Ozimek believes the shortage is due to lack of wage growth in the construction industry. However with the decline in unemployment, the job market will soon become an “employees’ market” instead of a employers’ market, which should drive up competitive hourly and salary wages. For the construction industry, this should put many out-of-work carpenters, builders, plumbers, electricians, and day laborers back to work with a healthy salary. Ron Lee Homes has been following this construction employment trend in St. Tammany Parish by expanding its services to include remodeling as well as custom home construction. To build your new, custom home today, Contact Us at 985-626-7619 or E-mail Info@RonLeeHomes.com.

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