To Build or To Buy a Home

 If you want to own a home but haven’t decided whether to build a house or buy one, there are several things to consider. If you love a custom look with features and finishes that are in your taste, then building a custom home would be for you, but if you like historic charm and an older established neighborhood then purchasing a resale is right for you. If your budget is a factor, what is cheaper: building a home or buying an existing one? The National Association of Home Builders and the US Census Bureau reports that the median cost to purchase a home is $410,600 and is less by $28,800 than building a home.

Pros and cons: Building a house

According to the professionals in the industry a basic home can be built for around $150 per square foot. This is for a basic home, but this price can jump up to over $500 per square foot if you want the best of the best. When you build a home you get to choose what you want such as an eat-in kitchen. A new home also has less long-term expenses than an older home. A new home will be more energy-efficient and will have lower utility bills. There are also less repairs and lower maintenance costs.

On the other hand, a new construction home will take longer to get into. Especially nowadays with labor shortages and shipping difficulties. According to the US Census Bureau it takes around 6-8 months to build a new construction home. You will also have an alternative place to live while your home is being built which is an added expense. Since there is a shortage of home inventory, demand is up and the cost of building is higher. The US Census Bureau reports that new construction home costs have risen $84,700 over the same time last year.

Pros and cons: Buying a house

Most of the time, there are fewer construction costs when purchasing an existing home. The only time this will not be the case is when you purchase a fixer-upper. When you purchase a home, the transaction time is also a lot quicker. This would be the best option if you need to relocate or have a short time frame. If location is important, purchasing an existing home will be much easier than finding a lot to build on.

You do not have to build to get an all-new home. You can opt to purchase a new construction home that is completed and listed for sale. You will still have all new everything without the hassle of building a home yourself.

If you are in the market for a new home, find a local realtor who can help you with your purchase of a newly built home, custom-built home or an existing home. A realtor can help you determine which is best for you and your lifestyle. They can also help you with financing options and refer you to a lender.

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Be in the Know When Building a Custom Home

 What are some things you should know about when building a custom home?

How to Pay for a Custom Home
What You’re Paying For
Finding the Right Contractor for Your Custom Home
Designing and Building the House

There are many in the housing market that would rather build a home than purchase a new construction home that has already been built. When you build a home you have all the say from start to finish. There are some things you need to know when building a home. Here are some of them that professionals say are important to know.

How to Pay for a Custom Home

If you are in the market to build a custom home, then you will probably be using a construction loan. This type of loan is a short-term loan that will cover all of your expenses while you are building your home. It is a bit lengthier and stricter than a regular mortgage but is perfect for a custom home build. Many people choose to do a construction to permanent loan. Once your home is built and ready to occupy, your loan turns into a standard mortgage loan. Remember that a construction loan is typically only for 12 - 18 months and the payment process is different from a standard mortgage loan.

What You’re Paying For

Remember there will always be extra expenses when building a custom home. These include plumbing, electrical wiring, lighting, internet configuration, and media hookups. There will also be many different industry professionals who you will also need to pay including plumbers, electricians, city inspectors, land surveyors and structural engineers. All this aside, your builder or contractor will reach out and coordinate with all of the suppliers and laborers.

Another cost that you might incur is by using an architect. If you need to have help with the design of your home, then you will need to hire one. If you do not want to choose a stock plan, then this will be the route you need to go.

Finding the Right Contractor for Your Custom Home

This is very important because they not only need to be a professional in the industry but also need to work with your personality. Choosing the right contractor or builder will make all the difference. To go about choosing one, first, start with word of mouth. A first-hand account is always the best. Before making your decision, interview several different contractors. Keep in mind that you will want them to be able to meet your timeline, agree with your vision and have a positive attitude about your design. As with any other interview, check references, read business reviews and google their name to see what comes up.

Designing and Building the House

This will take a good bit of time because your contractor will want to meet with you for several preconstruction meetings. Remember during these meetings to take notes, keep records and pay attention. This way you will be able to reference the plans that were agreed upon. Put the budget in your forethought as you go through your planning stages. It is very easy to get carried away and spend much more if you do not keep track. Always keep in mind if what you plan is good for resale. This can also affect your decisions. Even though it is a long and tedious process, at the end you will have your dream home.

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Questions a First-Time Home Buyer Should Ask Their Lender

 The current market is definitely a hard one to navigate especially for first-time homebuyers. When purchasing a home for the first time there are so many overwhelming important decisions to make. Here are ten questions to ask your mortgage lender when purchasing a new home.

1. How do I know what type of mortgage is best for me?

There are many options available and finding the right one for you is very important. Your mortgage lender can help you with the process of choosing which mortgage will be best for you. A mortgage lender can help you list the pros and cons of each loan option.

2. What kinds of mortgages do you offer?

There are two major types of mortgages which are conventional loans and government-backed loans. A mortgage lender can help you with choosing the best loan for certain circumstances. They can determine what type of loan you are qualified for.

3. How much should my down payment be?

Usually, a 20% down payment is preferred, especially if you want to avoid PMI (private mortgage insurance). If this is not a figure you can afford, a lender can work with you on the amount you can put down. Depending on what you are approved for, it can be as small as a 3% down payment.

4. What will my interest rate be?

This is usually the first question most people ask a lender. Your interest rate will determine how much you can borrow. There are fixed-rate loans and adjusted rate loans. A 1% difference does not sound like a big difference but it can save you a lot over the lifespan of your loan.

5. Do you offer a mortgage rate lock?

This is important because a rate lock can keep you at a predictable loan cost. This is basically an agreement between you and your lender that the interest rate will not change until closing. If the rates start to rise, this does not matter, you will still get the lower rate.

6. Are there income requirements for buying a home?

There are lending requirements. A lender can help you and they do this case by case with what you will need. It can depend on your credit score and your source of income.

7. Do you offer pre-approval or prequalification?

First, you need to know the differences. Pre-approval means that a lender has verified your income, credit score and assets through documents such as your W-2s, tax returns and bank statements. Prequalification is based on what you tell your lender about your income, assets and credit. Then your loan amount is based on an estimate.

8. What will the costs of closing be?

Closing costs are the fees for processing your loan. These will be paid to the lender. The appraisal fees, origination fees, attorney fees, and title insurance are included in the closing cost. Your lender will provide you with an estimate of closing costs based on the type of loan you go with.

9. What should I do to prepare my financials when considering buying my first home?

There are many things you can do to get your finances in order. Make sure your credit is in good standing. If not, find ways to strengthen your credit. Always determine your budget before you start the process. Do your shopping and compare rates. Always get prequalified before you start looking for a home.

10. Are you doing a hard credit pull on me today?

This is important to ask because a hard credit pull can have an effect on your score. Do not let a lender do a hard credit check until you have agreed to work with that lender.

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Rising Home Purchases Means Bigger Spending on Remodeling, Appliances and Furnishings

 According to the data found in the Consumer Expenditure Survey (CES) data from the Bureau of Labor Statistics (BLS), the National Association of Home Builders says that new home buyers and existing home buyers spend thousands of dollars or more on in the first year of owning a home on appliances, furnishings and remodeling. This estimate is derived from the pre-pandemic (2017 - 2019) data collected.

NAHB's report found that during the first year after the purchase of a new construction home, a homeowner will spend on average over $9,250 on their home over a non-moving home owner, and those that purchased an existing home spent around $5,240 over non-moving homeowners. This shows that a home purchase causes an increase in spending. These expenditures are mostly on things like appliances, furnishings, and remodeling.

New home buyers also spend a lot more on property alterations and repairs.  A typical new home buyer is estimated to spend almost twice as much on these projects ($9,288) compared to a similar household that stays put in a house they already own. When looking closer, the study showed that these expenses were from building outdoor features such as a pool, patio, fences, and landscaping.

When someone moves into a new home, they also want to have some new furnishings. This also triggers bigger spending. It is estimated that a new home buyer spends around $3,000 or more on furnishings during the first year of owning a home and $1,870 on appliances.

If a new home buyer purchases an older home, this price can go up even more. It is estimated that they tend to spend around $5,238 more on remodeling, furnishings and appliances. The majority of the spending is on property repairs, alterations and remodeling projects. Homeowners that do not move will spend around $4,282 in a year on home projects while those that buy existing homes will spend around $7,400 during the first year after closing. The data shows that home buying does spark additional spending.

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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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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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Housing's Growth According to NAHB's Eye on the Economy

 

June 2020 saw a small decline in single-family new home sales to around 6.6% according to the National Association of Home Builders Eye on the Economy. The annualized rate fell to 676,000. Although the past several months have seen a small monthly decline, the new home sale is still 13.5% higher on a year-to-year basis from 2020.

The small decline according to some industry professionals is from the lack of inventory and the higher construction costs while other industry leaders believe it is caused due to the higher new home prices. New home prices have risen 10% since January 2020.

The new home inventory is down by 44% which is a little over 34,000 homes over the last year. Supply factors including the material, labor and lots are holding builders back. The survey also indicated that today's buyers are not happy with housing affordability. In fact, the share of buyers who can afford less than half the homes available for sale worsened from 63% at the end of 2020 to 71% by midyear.

Although the market is still going strong, those who did not purchase during the second quarter of 2021 was due to pricing. The higher construction cost and development costs have hindered housing prices. The GDP growth for the second quarter was at a low of 6.5%. The good news is that NAHB is predicting an overall growth rate of just under 7% for the whole year. This will be the best rate seen since 1984.

This is still a good time to buy as mortgage rates are still reasonable. If you are in the market for a home, contact your local Realtor.

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Over Half of New Construction Single-Family Homes in 2020 Were Built on Slab Foundations

 

During the release of the National Association of Home Builders (NAHB) Survey of Construction (SOC) it was reported that over half (65%) of new single-family homes built in 2020 were constructed on slab foundations. The remaining accounted for 22% with a full/partial basement and 12% with a crawl space.

In fact, there is a wider gap between a slab and full/partial basement and this gap is still widening. This can be seen in the reports from previous years. In 2000 only 46% of new single home starts were built on slabs. This is not the case with new homes constructed on a basement. In 2000 36.8% were built on basements while only 22% were in 2020.

The percentages differ from region to region. New homes that were built on slab foundations were predominant in the West South Central (95.7%), followed by the South Atlantic (79.4%), next was the Pacific (97.7%) and still strong but a little under half in the Moutain Region (48.1%).

Over the past decade, most new single-family homes were built on slab foundations. Experts say this is due to the warmer climate. In the East South Central division, 43% of the new single-family homes were built on a crawl space which outnumbered the 38% that were built on slabs.

The climate in each region plays a big part in what types of foundations are used in that area. Homes that are built in colder areas must have their foundations built below the frost line. This means that the majority are built on partial or full basements. New England saw 79.8% of new homes built with full/partial basements, West North Central (77.2%), Middle Atlantic 69.5% and East North Central 54.3%.

The survey also reported the average area of a finished basement in the colder regions. In the East North Central new single-family construction homes had 1,156sq. ft., while West North Central had 998sq. ft., Middle Atlantic 921 sq. ft. and in New England 734 sq. ft. According to the survey nationwide the average finished basement area was 1,137 sq. ft. in 2020.

If you are in the market for a new home, now is a great time to buy. Check with a local Realtor who can help you with the process from start to finish.

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Buyers Who Are Looking For New Single-Family Homes Opt For A Single-Story

  According to the US Census Bureau’s Survey of Construction (SOC) and information gathered by NAHB two-story homes are on the decrease. They found in 2020 the same amount of two-story homes started was equal to single-story homes.

Nationwide, the share of new homes with two or more stories fell from 52% in 2019 to 50% in 2020, while the share of new homes with one story grew from 48% to 50%.  The South region has seen the most increase in one-story homes for three straight years. One story new homes started in 2020 shows the most in West South Central with 62%. The least was in New England with 15%.

The 2020 Survey of Construction shows each region divided by new homes with a single story and new homes with two or more. The Pacific region shows 39% built were one story while 61% were two or more, Mountain showed 51% single while 49% were two or more, West North Central had 57% one story while 43% were two or more, West South Central had 62% one story with 38% two or more, East North Central showed 56% were one story while 44% were two or more, East South Central showed 61% one story and 39% two or more, the South Atlantic came in with 48% one story and 52% two or more, Middle Atlantic with 28% one story and 72% two or more, and New England with 15% one story and 85% two or more.

That means that four of these nine divisions saw the greatest newly-built homes with two or more stories. In fact, two or more story homes were seen in greater amounts in the divisions along the coasts around the country. As far as single-story homes, the Midwest and South won.

A surprising twist to the current home market that might have stemmed from the pandemic. If you are in the market for a new home, call a local Realtor in your area. A Realtor will be able to help you with your home search.

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Ways To Home Stage on a Budget

  One of the most important parts of the home sale process is staging your home. According to industry leaders, staging your home prior to putting it on the market will not only make you more money but will also help your home sell faster.

The National Association of Realtors reported that 96% of realtors believed staging had an impact on the buyer. Here are some great tips for staging your home before you put it on the market.

Go on a Cleaning Spree

For those on a budget, this is a great way to start the process of getting your home ready to sell. Most homeowners do weekly tasks to keep their home clean like dusting and vacuuming. When getting your home ready to sell, go the extra mile by scrubbing the grout in the bathrooms, soaking faucet heads in vinegar to remove limescale buildup, clean the baseboards and deep cleaning all the remaining areas of the house.

Declutter Everything

A big room can look small and cramped when it is filled with clutter. When staging a room, remember less is more. Just think, if you declutter now, there will not be as much stuff to pack when moving.

Keep Flat Surfaces Clear

Shelves, countertops, desks and tables should be cleared. According to top professional home stagers, this is one of the top on the list.  A few decorations here and there are fine, but clean lines are a home staging staple.

Remove Personal Items

A buyer does not want to see that this home belongs to the seller. The buyer wants to be able to envision themselves in the home. Remember you want to showcase your home's potential and keep distractions at bay. Removing family photos, knick-knacks or memorabilia that can distract potential buyers is a must.

Paint Walls with Neutral Colors

Bright or dramatic paint color can give a negative impression on buyers. In order to appeal to the widest range of buyers, repaint your walls in a neutral color. Use color schemes such as white, cream, beige or light gray. Studies show that neutral paint in homes can bring a seller an average of 107% return on investment.

Refresh with Mild Scents

Another sense that buyers use when touring a home is smell. Bad odors such as pets or cigarettes can detour buyers. If your home has been exposed to such elements over time, take baking soda and sprinkle it on soft surfaces such as carpet and furniture. You will want to leave it there overnight and then vacuum it up the next day. Another trick is to wash your windows and clean the walls with mild soap and water. Steaming cleaning your floors will also help with pet odors and stains.

Remove Evidence of Pets

Not all potential buyers are pet lovers. Pets can cause damage to the home such as scratch marks, odors and stains. If these reminders are left, it can detour many buyers from purchasing your home. A tip for pet stains is to treat them with a mixture of vinegar, water, baking soda, peroxide and detergent. If a pet has scratched hardwood floors, purchase a hardwood repair kit to fix the scratches. Just like the sellers leave when someone tours your home, the pets should also.

Let in Natural Light

When looking at home listings many always talk about the open and bright spaces. Letting in the sunlight is a free staging tip and can make a world of difference in a space. Both professional home stagers and real estate photographers believe a well-lit room is a strong selling point for those looking to purchase a home.

Choose the Right Light Bulbs

Most homes still need light fixtures to brighten the rooms. Do not use fluorescent bulbs rather use soft white bulbs that some say mimic natural light. Some homeowners often use daylight bulbs which send a blue hue into the rooms. These work well in kitchens, bathrooms and home offices.

Create More Space with Mirrors

Just like magic mirrors can give the illusion of more space in a room. In order to make your square footage "stretch," you will need to strategically place mirrors. An example would be to take a large mirror and place it at eye level near a light source in a room. This makes the room feel bigger and more comfortable.

Upgrade the Cabinets

Dated cabinets can make your kitchen look old and run down. A way to fix this problem without breaking the bank is to transform your existing old cabinets. To do this you can add a fresh coat of paint and new hardware.

Organize the Closets

Buyers always look at how much storage space a home has. Storage space is one of the top features on the buyer's list. A great trick to use is to organize and clean out your closets. Clear floors and neatly hung clothes can make a closet appear bigger. You want to create the feeling that there is a lot of empty space that can be used.

Rearrange Your Current Furniture

When working on a tight budget, a good solution is to work with what you already have. Make sure your floorplan and furniture create an easy flow for potential buyers to navigate. Change your furniture around to create a nice flow to each room.

Use Existing Items

As mention earlier, use what you got. If you need to purchase something on a budget a great place to find items is at estate sales, garage sales, thrift stores, antique stores, Facebook Marketplace or Etsy.

Place Decor Using the Rule of Three

A great insider tip is to group decorative pieces by three. For example take a large, medium, and small decor piece and place it next to one another on a coffee table. Another great idea is to take a tall vase and place it with two smaller candles.

Buy New Bedding

Worn bedding or mismatched bedding can mess a whole bedroom design. A well-made bed is a plus in staging a bedroom. Use neutral color bedding when staging.

Put Slipcovers on Furniture

Give your outdated or dirty sofa and throw pillows a lift. An easy way to do this is by putting slipcovers over the sofa and throw pillows. A tip is to always choose slipcovers that match the room decor. This is a much less expensive way to update a room over buying all new furniture.

Try Virtual Staging

Sometimes it is hard for buyers to envision a room when it is vacant. A vacant property can still be stage without bringing in furniture and decor. Virtual staging is a great way to stage a home on a budget. Virtual staging makes the area look really staged and can be completed by a virtual stager at $50 per photo.

These tips won't break your bank and will help you get more bang for your buck when you sell your home. It is still wise to hire a Realtor that is experienced in selling a home in your area.

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NINETY PERCENT OF NEW HOME SALES IN Q1 2021 WERE BACKED BY CONVENTIONAL AND FHA MORTGAGES

The recent Quarterly Sales by Price and Financing, published by the U.S. Census Bureau, was analyzed by the National Association of Home Builders and found that conventional loans financed the largest share of new home sales since 2018.

Conventional loans in Q1 2021 were reported at 71.6%, FHA came in at 19.3%, VA loans at 5.3% and cash new home sales were 4.1%. As far as the percentage points increase from Q1 2020, conventional loans rose 2.1 percentage points and FHA-backed sales were up 1.6 percentage points. Unfortunately, VA loans decreased 2.1 percentage points and cash sales dipped 0.9 percentage points.

The four-quarter moving average (MA) of the share of new home sales backed by FHA has increased over the past two and a half years from 12.2% to 18.9%. Conventional loans however have seen a 4.4 percentage points decrease during the same period.
Even with a small increase, interest rates are still at historically low levels. The stock market returns topping 20% from Q1 2020 to Q1 2021 have played important roles in the large increase in the number conventional loan and cash purchases relative to sales financed through the FHA and VA.

Now is a great time to purchase a home with low interest rates and in turn a great time to also sell. The national median sales price for a new home reported was $347,500 and those homes sold back by financing were $386,600.
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December 2020 Saw the Largest Gain in Home Prices in 7 Years

The end of 2020 was chaotic with the pandemic mixed with the holidays. This did not slow down the housing market, especially when it came to increases in home prices. It was reported that home prices rose at the fastest pace we have seen in seven years.

The S&P CoreLogic Case-Shiller Home Price Indices reported that nationally home prices rose 10.4% over the data collected in December 2019. Not only were the home prices rising at a record pace, but we saw the largest annual gains in the more than 30-year history of the index in December 2020.

“2020′s 10.4% gain marks the best performance of housing prices in a calendar year since 2013,” said Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices. “From the perspective of more than 30 years of S&P CoreLogic Case-Shiller data, December’s year-over-year change ranks within the top decile of all reports.”

The strongest gains were seen in Phoenix, Seattle and San Diego among the total cities surveyed. Phoenix showed a 14.4% increase year-over-year, Seattle had a 13.6% increase and San Diego was not far behind with a 13% increase.

COVID-19 has driven demand in homes because of the stay-at-home orders. People are more concerned with their homes now more than ever. A lack of inventory and the record low mortgage rates has made the current housing market very strong and desirable.

“These data are consistent with the view that Covid has encouraged potential buyers to move from urban apartments to suburban homes. This may indicate a secular shift in housing demand, or may simply represent an acceleration of moves that would have taken place over the next several years anyway,” Lazzara said.

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Strong October Housing Market

 Realtor.com’s Monthly Housing Trends Report said this October saw close to record levels in sales in the U.S. housing market. In fact, this October houses sold faster than September for the first time since 2011.

“In the fall, we normally see homes sell more slowly and prices pull back from peak levels. But this October, we saw a drop in the time it takes to sell a home even while home prices remain at their summer peak,” said Danielle Hale, chief economist for realtor.com.

According to Realtor.com in October homes sold in 53 days which was 13 days faster than October of last year. For home prices, the median listing price rose 12.2% year-over-year to $350,000.

The numbers for the newly listed homes by U.S. metropolitan area were very different. San Jose-Sunnyvale-Santa Clara, California had the highest new listing count year-over-year at 30.6% with a median listing price of $1,199,100.00 with 34 days on the market while Nashville-Davidson–Murfreesboro–Franklin, Tennessee had the lowest new listing count year-over-year at -27.5% with a median listing price of $400,000 with 32 days on the market. Within the country’s 50 largest metros, homes sold in a record 45 days.

As far as the nation’s regions, the Northeast had the highest gains at 11.4%, next the West had 10.1%, followed by the Midwest with 9% and the South came in last at 7.3%.

Here is a look at the number of newly listed homes by metropolitan area:

Metro	New Listing Count YoY	Median Listing Price YoY	Median Listing Price	Median Days on Market	Active Listing Count YoY
San Jose-Sunnyvale-Santa Clara, Calif.	30.6%	8.1%	$1,199,100	34	-18.5%
New York-Newark-Jersey City, N.Y.-N.J.-Pa.	28.2%	15.1%	$639,100	58	-6.1%
San Francisco-Oakland-Hayward, Calif.	25.9%	11.6%	$1,049,100	35	-4.2%
Los Angeles-Long Beach-Anaheim, Calif.	17.2%	16.9%	$995,100	49	-22.9%
Hartford-West Hartford-East Hartford, Conn.	15.9%	7.1%	$300,000	41	-31.3%
Boston-Cambridge-Newton, Mass.-N.H.	15.1%	13.9%	$669,100	33	-29.4%
Seattle-Tacoma-Bellevue, Wash.	12.5%	6.4%	$625,000	35	-31.6%
Sacramento–Roseville–Arden-Arcade, Calif.	11.3%	12.3%	$549,100	35	-48.4%
Minneapolis-St. Paul-Bloomington, Minn.-Wis.	9.9%	2.4%	$348,000	37	-30.1%
Washington-Arlington-Alexandria, DC-Va.- Md.-W. Va.	5.4%	4.6%	$502,100	36	-36.7%
Las Vegas-Henderson-Paradise, Nev.	0.4%	7.9%	$345,300	41	-7.8%
San Diego-Carlsbad, Calif.	-0.6%	11.2%	$795,100	24	-25.4%
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.	-1.2%	16.7%	$349,100	48	-41.8%
Denver-Aurora-Lakewood, Colo.	-2.0%	5.0%	$520,000	36	-44.2%
Birmingham-Hoover, Ala.	-2.4%	1.7%	$260,000	51	-36.1%
Portland-Vancouver-Hillsboro, Ore.-Wash.	-2.7%	9.1%	$510,100	49	-44.0%
Riverside-San Bernardino-Ontario, Calif.	-3.8%	14.6%	$470,100	41	-53.6%
Rochester, N.Y.	-3.9%	12.9%	$228,700	31	-43.3%
St. Louis, Mo.-Ill.	-4.4%	10.3%	$248,000	56	-38.4%
Virginia Beach-Norfolk-Newport News, Va.- N.C.	-4.9%	6.9%	$320,600	39	-46.7%
Baltimore-Columbia-Towson, Md.	-7.3%	4.6%	$340,000	43	-51.4%
Raleigh, N.C.	-7.3%	6.8%	$390,000	49	-45.4%
Milwaukee-Waukesha-West Allis, Wis.	-7.6%	3.8%	$300,000	42	-39.2%
Houston-The Woodlands-Sugar Land, Texas	-7.6%	7.8%	$334,100	52	-32.8%
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.	-7.9%	9.5%	$345,000	43	-32.6%
Buffalo-Cheektowaga-Niagara Falls, N.Y.	-8.2%	7.5%	$215,000	52	-46.7%
Tampa-St. Petersburg-Clearwater, Fla.	-8.2%	10.0%	$308,000	48	-43.0%
Miami-Fort Lauderdale-West Palm Beach, Fla.	-8.8%	2.5%	$410,100	93	-15.6%
Austin-Round Rock, Texas	-9.0%	15.9%	$413,200	46	-47.7%
Orlando-Kissimmee-Sanford, Fla.	-9.2%	1.6%	$325,000	59	-20.9%
Cleveland-Elyria, Ohio	-9.3%	3.2%	$200,000	47	-48.2%
Phoenix-Mesa-Scottsdale, Ariz.	-9.3%	7.7%	$415,600	36	-41.8%
Pittsburgh, Pa.	-9.4%	N/A	$245,100	57	-36.8%
Providence-Warwick, R.I.-Mass.	-10.3%	6.1%	$400,000	42	-52.5%
Kansas City, Mo.-Kan.	-11.1%	10.1%	$330,100	47	-48.7%
New Orleans-Metairie, La.	-12.8%	15.7%	$329,100	64	-39.1%
Cincinnati, Ohio-Ky.-Ind.	-13.7%	16.3%	$310,000	39	-44.9%
Oklahoma City, Okla.	-15.4%	6.6%	$270,000	48	-40.5%
San Antonio-New Braunfels, Texas	-16.0%	3.6%	$300,000	53	-40.8%
Dallas-Fort Worth-Arlington, Texas	-16.1%	4.1%	$356,000	47	-46.8%
Louisville/Jefferson County, Ky.-Ind.	-17.4%	2.2%	$258,100	35	-50.2%
Columbus, Ohio	-17.5%	9.0%	$305,100	35	-47.8%
Atlanta-Sandy Springs-Roswell, Ga.	-18.8%	10.6%	$355,100	46	-45.5%
Indianapolis-Carmel-Anderson, Ind.	-19.8%	5.7%	$275,000	43	-47.8%
Jacksonville, Fla.	-20.4%	2.6%	$318,100	55	-45.5%
Memphis, Tenn.-Miss.-Ark.	-21.7%	14.0%	$263,800	45	-49.3%
Detroit-Warren-Dearborn, Mich	-21.7%	12.4%	$269,100	38	-47.4%
Richmond, Va.	-21.8%	11.7%	$357,000	45	-48.2%
Charlotte-Concord-Gastonia, N.C.-S.C.	-22.9%	9.0%	$365,400	43	-48.7%
Nashville-Davidson–Murfreesboro–Franklin, Tenn.	-27.5%	8.1%	$400,000	32	-43.6%

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Reasons Why the Biggest Housing Boom in History Is Just Beginning

The year 2006 brought one of the most profitable side jobs for Americans, flipping houses. In fact, that year, it was reported that one in over ten homes purchased were to flip. In 2008, it all came crashing down. Many went bankrupt because they were stuck with owning flips that were on the fast pace to a dramatic depreciation in value. The housing crash not only affected the housing market, but also caused Americans to lose their jobs and businesses. Fortunately things are turning around for the housing market. Today, housing stocks are one of the best investments out there.

According to Forbes.com housing stocks are currently booming. NVR Inc., a homebuilder, is a slam dunk. It was reported that in February 2019, NVR stocks were at a 45% gain beating the S&P 500 at 10%. Those that purchased the stock back in February have made a lot of money. According to the site’s research, housing stocks will be the way to go for years to come.

Another two stocks to invest in are Vulcan Materials (VMC) and Martin Marietta Materials (MLM). Both companies sell concrete and gravel which is used a lot in the house building industry. Homebuilders use both for housing

foundations, roads and sidewalks. According to the chart, these two stocks have rocketed in the past year. Revenues in the company are rising and hitting all-time highs.

Housing expert Barry Habib, founder and CEO of MBS Highway, has the insider knowledge from the top players in the US housing market. The biggest issue he sees is supply and demand. Since 2009, only 900,000 homes have been built per year. Habib says this is the lowest inventory since the 1950’s. This is one of the biggest

housing shortages we have had. He says that with existing inventory, it would take under six months to sell everything currently on the market.

“The most important driver of home prices is supply and demand. And right now, there is a chronic undersupply of homes in America,” Habib stated.

Habib believes the market is about to be flooded with homebuyers. Millennials have been recorded to be the biggest generation the country has seen. The National Association of Realtors states that one in three homebuyers today is a Millennial.

“On average, folks buy their first home at age 33. Guess what the median age of Millennials is right now? 34. In the past year or two, the first wave of young homebuyers came into the market. But every year for the next decade, tens of millions of Millennials will hit home-buying age.”

This flood will definitely play an important role in the prices of homes. Supply and demand is the most important driver for home prices. With such a tight supply in inventory the housing market will continue to boom.

What does that mean for homebuilders? They will have job security for a while to come. This fall, new home starts rose to their highest level since the summer of 2007 and building permits are at the highest level since the spring of 2007. Habib believes “the American housing boom has years to run.”

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Reasons to Buy An Energy-Efficient Home

Everyone wants to save money and have a little extra in their pocket each year. One way to do this is through saving on utilities. Energy-Efficient homes are the way to do this and here are some reasons why.

There are many benefits to owning an energy-efficient home. When it comes to utilities, 30% of homeowners say the cost to heat, cool and illuminate their home is expensive. Energy Star rated homes use 20% less energy according to the U.S. Environmental Protection Agency. Energy-efficient homes are known to sell faster and at a higher price than un-certified homes. Studies done by the

Energy-efficient homes are held to a higher standard. There are many certification rules and these can vary by region. The house itself is not the only thing that must be certified. Many contractors such as the HVAC contractor must have proper credentials and have EPA training. There is a close inspection of the homes lot design, home location, sustainability of building materials, and even access to alternative transportation to meet minimum standards.

These homes are in demand. James W. Mitchell, founder of Renewablue, a home energy consulting firm in Fort Collins, Colorado, believes that this is the only time someone will save money when borrowing it to purchase a home. When looking for an energy-efficient home look for keywords in listings such as “green”, use an “eco-savvy” agent, request past utility bills from the seller and consider an energy-efficient mortgage.
National Association of Home Builders have shown that they can bring in on average about $5,000 more.




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Pending Home Sales on the Rise

Spring is not the only thing warming up this year, the National Association of Realtors (NAR) just reported that the pending home-sales rose 3.8% in March 2019 (April 2019 will be released May 30, 2019.)

“There is a pent-up demand in the market, and we should see a better performing market in the coming quarters and years,” said Lawrence Yun, NAR’s chief economist.

The Pending Home Sales Index reported its findings based on a forward-looking indicator of the contract signings which rose to 105.8 in March from 101.9 in February. Yun notes that the increase

The break down by region is contrasting. In the Northeast there has been a decline in pending sales of 1.7% in March to 90.5. In the Midwest however, pending home sales grew 2.3% to 95.3 in March. The two regions with the biggest jump in March were the South which rose to 127.2 (a 4.4% jump) and in the West to 95.1 an 8.7% rise.

So far spring is looking up for the housing market and only time will tell if the selling season will remain a hot market.
has been influenced by the influx of mortgage applications and favorable mortgage rates.


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Patios Make A Great Outdoor Living Space

A homes outdoor space can be just as important as the indoor living space. In fact, there are scientific backed reasons that a homeowner’s outdoor space makes them happy. Several of these include, it is a space for bonding, plants can reduce stress and give off oxygen to help you breathe deeply, it can make you feel younger and it can prevent depression.

Builder’s see the importance in this concept when building most homes. According to the NAHB (National Association of Home Builders) out of the new homes started in 2017, 58.6 percent included patios. This is a huge jump from 2011 where under 50 percent of new homes had patios. The SOC (Survey of Construction) also points out that patios were more common than decks by 23.8 percent in 2017.

Patios differ in size and materials throughout the United States. The average size of a patio on a new home built in 2017 was 260 square feet according to the Annual Builder Practices Survey (BPS)

conducted this year. Although patios are not as common in New England and Middle Atlantic, surprisingly when it comes to new homes with patios, they are the largest nationally topping off at over 370 square feet on average. The building materials used in the two regions usual consists of poured concrete with concrete pavers, natural stone or brick pavers. In the West South-Central poured concrete is not used as much as just concrete pavers.

Over the nine Census divisions there are vast differences on the amount of new homes that were built with patios in 2017. On the high end were the West South-Central at 80 percent, the Mountain at 71 percent, the Pacific at 62 percent and the South Atlantic at 62 percent. The division under 50 percent include West North-Central, East North-Central, New England, Middle Atlanta and East South-Central.

The Northshore is definitely a perfect area for a patio and will make a great space for homeowners to relax and spend weekends and evenings in the great outdoors.

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School Districts Can Affect the Value of Your Home

Anecdotal evidence shows that home buyers will pay up to 10% more for a home that they buy that is in a good school district.  In fact, many people buy homes in good school districts even in the family planning stages before they ever have kids.  Therefore, if you have children or are planning to have children, and you are interested in your children being able to get into a good school, you will need to make sure you have the time and budget to plan your home or new home search.

The first thing you need to do is to decide whether you want your kids to go to public or private schools.  Private schools don’t have districts, so buying a home in order to be close to a private

school or knowing that your child will be attending private school will make your home buying decision more flexible.  If you are planning on sending your kids to public school, then you need to get serious about figuring out which is the best school district for you, your kids, and your family. It’s not just about test scores and ratings when it comes to schools. There are other factors to consider such as extracurricular activities, sports, clubs, friends and lifestyle expectations.

Once you have narrowed down the school district in which you would like to live, be sure that you have allocated enough time before the next school year to find a new home to buy.  Expect there to be competition for homes going on the market in a good school district.  Because, not only are the homes going to probably sell quickly, there are other benefits to buying in a good school district such as home values which make the homes more desirable and a better real estate investment.

When choosing the right home to buy, make sure that all of your finances are in order.  Get pre-qualified with a realistic lender, so that you look better to the seller once you make an offer.  Being able to close quickly on a home can make a seller more interested in working with you.

Be ready for the price tag of living in a better school district when it comes to property taxes.  Property taxes help pay for your kids’ public school education, but when your home is located in a better district, you “get what you pay for.”  Other than that, buying a home in a really good school district is a way to invest in not only your childrens’ futures but also in your financial future with great equity in the resale value of your home.

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Decisions to Make When Installing a Fence

Sometimes you like the idea of having a yard with no boundaries, where you can see everything from your front or back porch with nothing obstructing your view.  Or, if you have pets who also like freedom or maybe neighbors you’d rather not have seeing you, you might want to install a fence in your front yard or backyard.  Believe it or not, getting a fence installed can take quite a bit of work on your part when it comes to selection of material, parameter of the fence, and finding the right fence contractor.

Here are some tips that will help you get started on the process. The look of your fence and its requirements are totally up to you!

Fence Purpose
What is the purpose of your fence? Do you want more privace and need a wood-slatted or vinyl privacy fence? Do you have pets that are just as smart as you are and need a secure fence to keep them from “visiting” everyone else in the neighborhood?  Do you need boundaries for your neighbors where they can see you and you can see them, but they can’t just walk on over?  Whatever type of fence you need, you need to begin there when making the next decision steps of your process.

Materials & Aesthetics
The next thing you will need to decide is how you want your fence to look.  There are several decorative fence styles that are popular in St. Tammany Parish. There is the “farm fence” which is a

1/2 to 2/3 tall fence with horizontal poles or boards, typically painted white.  There is the popluar picket fence which is seen around many homes in Madisonville and Mandeville.  There is the horse fence with is like the “farm fence” but is actually used as a fence to keep horses or cattle in.  This fence typically is taller with more horizontal rails.  It is also popular in north Covington and Folsom.  There is the 6′ or 8′ privacy fence which completely covers the area to make it…private.  You can also upscale your fence with a mixutre of materials including stone columns and wood slats or brick columns and wrought iron pickets.  Whatever type of fence you choose, be sure to be budget conscious and buy what you can afford.

Fencing Cost & Care
Which brings us to the next point – cost. Not only do you need to consider the cost of the materials but also the cost of installation. In Louisiana especially, you need to consider the elements when installing your fence because the weather here can wreak havoc on your materials.  Vinyl, aluminum, brick, & wrought iron will definitely last longer than wood (even treated wood) any day.  Going with a cheaper product, such as landscape timbers, may save you money in the short term, but you will definitely be replacing that fence in the near future.

Map Your Fence
If you are located in a neighborhood, you will want to be very clear where your property lines are located so as not to intrude on your neighbor’s property. That is a definite way to keep the peace between you and your neighbor.  You will also want to walk the proposed fence line with your installer to be sure that he or she is very clear as to where the fence needs to be installed.

Homeowners Association
Some homeowners associations have very strict rules as to where a fence can be constructed and even what materials may be used.  Be sure to check with them before beginning your project to make sure your fence proposal falls into their guidelines.  In some areas, you may have to get a letter from your HOA to get a permit from the city or parish before you begin.

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Architectural Styles When Building Your Custom Home

When building a fully custom home, the sky’s the limit as to what type of features, customizations, materials, and new home design you would like to use.  One of the options that home buyers forget they have is the exterior and interior architectural style that is available to them when designing the facade and different rooms of the home. Architectural style can truly define the way a home looks and feels both on the outside and the inside. The outside look is more obvious, such as the French and Spanish architecture you see on the many homes and townhomes in the French Quarter.  The interior architecture can be more subtle and less well known to other people and even your builder.  If you have your heart set on a specific architecture or floorplan layout based on an architectural style, don’t hesitate to let us know during the floorplan design of your custom home.

Several architectural styles are well-defined and easy to recognize and are listed below:

Mediterranean
Just like it sounds, this type of home makes use of exterior spaces in order to soak up the feel of the Mediterranean (or in this case, the Gulf of Mexico and Lake Pontchartrain in the Greater New Orleans Area).  These types of floorplans will have extensive verandas, courtyards, patios, sun rooms, or covered screened porches. The exterior finish typically includes plaster or stucco with low slope or flat roofs.  Interior details include decorative tile and exposed wood beams.

Southern
In order to compensate for the extreme heat of southern climates, southern architecture emphasizes

protecting the exterior of the home with wide covered porches around the entire home, long overhangs, functional shutters, covered verandas, elevated, open living spaces and sometimes decorative columns in the front.

Modern
Introduced during the ’50’s and 60’s, modern architecture becomes more simplistic with less ornamental design.  Horizontal windows, plain fireplace surround – basically ranch-style homes with low roof lines.  However, this simplicity is offset by high-quality material finishes, such as stone, wood flooring, and marble.

Cottages
Just like they sound, cottages are designed to be smaller, lower maintenance homes with incredible use of square footage space.  The term cottage brings to mind a cramped, small home with a lower mortgage, but builders have been quite innovative in building cottages with excellent use of space in the floorplan. Built-in window seats and shelving utilize empty walls to create more space for “stuff.” A spacious front porch also adds to the size of a cottage home.

At Ron Lee Homes, we have built numerous styles of architecture and have many different floorplan styles from which to choose.  You can bring us your ideas and pictures, and we can design the style of home that you want.  Call 985-626-7619 or E-mail Info@RonLeeHomes to make an appointment to create your floorplan design today!

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