Trends That Are Showing Up in Remodeled or Newly Built New Homes

Whatever type of home construction you are planning – a new, custom home or a complete remodel / renovation of your existing home – you will want to pay attention to the trends that are showing up in remodeled or newly built new homes.  Below are several trends that are popular among contractors, builders, and homeowners.

1. Luxurious garden tubs or jetted garden tubs have held steady in home construction for years, but for 2016, the trend is shower stalls or walk-around showers with shelving and seating.  There are some really unique shower designs that include multiple shower heads and even massage sprays.

2. For your backsplash, trim, or even walls and floors, ceramic tile is not as popular now among renovators and builders as glass tile.  The glass tile comes in many different colors as well as designs with multiple colors, so choose your matching design and go crazy!

3.  When stepping up to the gourmet kitchen or luxurious master bath, granite countertops used to be the ultimate material that reflected the type of construction of your new home or remodel.  There is a new material that is called engineered quartz that is not only tougher than granite and lasts longer, but it has the same timeless, classic, and upscale design for your custom counter work.

4.  Toilets naturally came in lower to the floor sizes for decades, but now there are choices of toilet heights that are available to new home buyers, and buyers are choosing height over flow.  The new, higher toilets are also more water efficient and modern, saving some homeowners on utility bills.

5.  Along with ornate, custom-built, real wood cabinetry; home buyers and remodelers now have a choice of painted, stained, and dark wood cabinetry vs. the traditional oak cabinets that were standard for new home construction projects.  Choose and contrast these colors as well with a two-toned look in the kitchen or bathroom.

6.  Even though, we as a custom home builder still encourage you to buy reliable appliances throughout your home, the industry has caught up with technology, so some home buyers and home renovators are now going with a mid-range level of appliance vs. a high-end appliance package.  The appliances themselves seem to have the same duration of service, and you can also purchase upper end looking fixtures, such as stainless steel to achieve the look you want without all of the cost.

7.  Back to the basics – homeowner and savvy new home buyers know to renovate and build their homes with real wood flooring such as solid oak or pine instead of engineered flooring.  While the look and cost of an engineered floor is great for the first few years, the results after many years of wear and tear don’t stand the test of time, weather, and constant use.  Homeowners and new home buyers will be looking to find affordable real wood choices for their flooring.

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Home Buyers Seeing Upward Trends in Real Estate

During the first month of the year 2016, home buyers have a lot to be excited about when considering buying a new home for sale.  Home pricing, consumer confidence, and home construction starts and permits are all up!  The housing market has been seeing a steady incline since it bottomed out between 2009 and 2011.  With sharp, record-breaking price increases in 2012 and 2013, the housing market almost seemed to be expanding too fast for consumer demand, consumer affordability, and consumer credit.  However, home pricing trends have “flattened” in 2014 and 2015 creating stability in the real estate market.
During the month of October, 2015, home prices rose at 6% and 11% depending on which report buyers were seeing.  The Case Shiller (CS) National Home Price Index released by S&P Dow Jones Indices showed an 11% increase in October while the more conservative Home Price Index from the Federal Housing Finance Agency (FHFA) rose 6%.  Either way, home pricing has stabilized and is on the upswing which is good for both buyers (a smart investment) and sellers.

Meanwhile, the vote of confidence from consumers showed an increase of approximately 4 points in December after 2 months of declining numbers.  The Consumer Confidence Index by the Conference Board rose from 92.6 to 96.5 from November to December.  The index shows that consumer confidence is growing back to pre-Recession levels.

Finally, construction housing starts and permits for 2015 were up 10.8% year-over-year to equal to 1.11 million.  Single-family home starts were up 10.4% and multi-family housing starts were up 11.4%.  The single-family home starts numbers came to 715,300.  Increases were seen in all 4 reported regions of the United States for single-family homes.  Housing permits were also up compared to 2014 by 12% with a total of 1.18 million.  Single-family home permits were up by 7.9%, and multi-family home permits were up by 11.4%.  In December, single-family home permit numbers were up by 1.8% compared to November as well.

All signs point to a solidly recovering housing market nationwide, and here in St. Tammany Parish, the custom home business is thriving with many new exciting projects for 2016.  If you are interested in building or buying a new, custom home, Contact Us at 985-626-7619 or E-mail Info@RonLeeHomes.com.

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Building a Raffle House for Charity in St. Tammany Parish

The Northshore Home Builders Association (HBA) in St. Tammany Parish is once again, in 2016, building a Raffle House for Charity called Raising the Roof for Charity.  A new home is constructed by member of the Home Builders Association of St. Tammany Parish on the North Shore, and then, this home is auctioned off to raise funds for several chosen local charities.  This year’s recipients include Boys and Girls Club of Southeast Louisiana, the Covington Food Bank, Habitat for Humanity-St. Tammany West and the Tammany Trace Foundation.

The new Raffle House is being built by Integrity Builders in Spring Haven Subdivision in Madisonville, Louisiana.  Tickets are sold by members of the Northshore Home Builders Association

to colleagues and associates in order to raise funds.  The HBA will be having two early drawings for Raffle House tickets – one on March 19th and one on April 16th.  Winners of these two drawings will receive a $1,500 reward.  The final Raffle House drawing will be held at the new, custom home in Spring Haven on June 4, 2016.  Special events will be held in the months leading up to the Raffle House drawing where opportunities to win a free raffle ticket will be available.

The new, custom home being built by the St. Tammany Parish builder member is a 2,600 square foot home of living space with 4 bedrooms and 3 baths which was designed by DesignTech Residential Planners.  The value of the home is estimated at $422,000.  This open floorplan includes a flowing design throughout the living room, dining, room, and kitchen.  The living room also has a gorgeous fireplace and coffered ceiling.  The kitchen includes an oversized kitchen island with breakfast bar and undermount sink.  Granite countertops, real wood cabinetry, and stainless steel appliances complete this deluxe kitchen setup.  The master suite features an oversized walk-in closet off of the sumptuous master bath, complete with centered tub with a separate shower flanking.  For outdoor entertainment, this new, custom home has a huge, covered outdoor patio, complete with outdoor kitchen setup.

In addition to the grand prize of the Raffle House being given away to a lucky recipient, there will be other prizes given out on the day of the drawing to winning raffle ticket holders.  The Raffle House is an important part of raising money for local charities as well as rewarding a St. Tammany Parish resident with a new home.  Don’t miss out on your opportunity to view this new, custom home in Madisonville, Louisiana.

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Krewe of Tchefuncte “Sails” One Day Early in Madisonville

Good news for Northshore Mardi Gras attendees comes in the form of two holidays colliding the weekend of February 6th and 7th.  The final crescendo to Mardi Gras weekend happens to fall on the same weekend as the Super Bowl, so parade goers on the Northshore get a treat to an exclusive Northshore Mardi Gras Parade on the Tchefuncte River in Madisonville, Louisina.

The Krewe of Tcheufuncte Boat Parade will “sail” on Saturday, February 6th at 1pm.  In addition to being a parade on water on the North Shore, as well as the only Saturday parade on the Northshore,

the Krewe of Tchefuncte also has judges available to judge participants in the parade on their boat decorations and costumes.  This year’s theme is Shaken, Not Stirred, and boater participants are expected to dress up and decorate in the theme of James Bond.  There are still available spaces left on the Krewe for $150 for a year’s membership which also includes a krewe T-shire and commemorative martini glass.

On the ground for parade goers and watchers, the Madisonville Community Benefit Organization, a new organization in St. Tammany Parish will be providing food and music on the riverfront of the Tchefuncte before, during, and after the parade.  Participating local restaurants will also be selling their wares and food to parade attendees.  Ironically, the Krewe of Tchefuncte is technically a boat parade, but people who attend will actually walk down the riverfront to the DOCKED boats to receive beads and trinkets thrown from the boat floats.

“I certainly am looking forward to a great time on the riverfront for the Krewe and the parade goers. We are praying for good weather. It’s carnival time and I’m happy to be a part of the Krewe of Tchefuncte,” said Parade Captain, Keith Dennis.

To participate in the boat parade contact Dennis at wkeithdennis@yahoo.com or call him at 985.264.8886. Co-boat Captain Lynn Haas can also be reached at 985.966.5619.
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Home Sale Numbers Nationwide Dip Slightly

New protections by the Department of Housing and Urban Development (HUD) kicked in the first of October, but their effects were not felt until November when delayed closings affected home sales numbers nationwide.  The plunge in new home sales was expected because of the delays that the new system incurred coming out the gate.
The new system for closing new home loans and home loans included a drastic overhaul of the traditional HUD (Settlement Statement), and this new document, called the CD (Closing Disclosure) had multiple checks and balances throughout the Good Faith Estimate all the way to closing to ensure that home buyers know what every aspect of their home buying process is about.
Despite the expected slowdown in home sales in November, the National Association of Realtors said that solid gains in real estate have been seen throughout the entire year of 2015.

Another factor contributing to an adjustment in home sales numbers is the fact that home values are increasing a rate that is double that of typical wages.  Year-over-year, home values have increased 6.3% in November to $220,300.  The good news is that wages exist with an improving job market and still historically low interest rates are encouraging buyers and refinancers to get their loans done before there is a significant increase in the interest rate.

Still, builders will have to get busy in 2016 because the real estate market is still showing a gap between availability and inventory for new home buyers.  New home builders can fill this gap with newly constructed homes which will help balance out home prices.
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Record Low Interest Rates to Increase With Fed Decision

Real estate is selling fast and prices are still competitive.  Builders and homeowners alike have taken advantage of the great rates seen after the 2008 economic crunch. These record low interest rates might soon be a thing of the past.  The Federal Reserve has decided it’s now time to rethink the rates because the economy is stronger, and more people are in a position to borrow money.  The Fed already bumped the key interest rate up by 0.25% in December 2015.

Fortunately the Fed plans to raise the rates at a slow, steady pace.  In fact, this is the first rate hike in almost ten years. Even with the slow increase, everyone will be affected. Anyone who has a credit card, savings account, invest in a 401(k), invest in the markets, or wants to make a big purchase with a loan needs to know how the rate increases will affect them.

Just because there has been a raise in the rate does not mean you should rush out and make a big purchase tomorrow.  Owning a new home is a big deal and you should research to find the right one that suits you.  Even if the rates are higher in a year, they still will be lower than historical averages.
“Rates are pretty low and they’re not going to change much in the short term,” says Dean Croushore, a University of Richmond professor and former Fed economist. Do start your research now and pay attention to the Fed’s actions.  If they do start to increase rates out of your comfort zone, it might be time to make that leap into home ownership.

Years ago many remember the advantages of putting their hard-earned cash into a savings account.  It would yield them a little bit of extra cash on top of what they had saved – imagine that!  In the past decade there has been almost zero interest earned.  With the Fed’s rate change, we will also see a higher interest income on your deposits. So a benefit to the rate increase means an increase on the money you put away in your savings account.

Not so smooth sailing for the stock markets. This Fed hike could cause major ups and downs in the stock and bond markets.  This trigger coupled with failing oil prices, China’s continued economic slowdown and decisions made by central banks around the world should be of great concern. According to MSCI Emerging Market Index, the stock market performance was down approximately 20% at the end of 2015.

With the new year comes good news for the U.S. dollar. The increase in the interest rate is predicted to make the dollar stronger. While the dollar is gaining many other global currencies are lowering.  This will have a negative impact on the global economy. U.S. companies will lose money on products sold in other countries.  Investors are already putting all of their money in U.S. investments rather than putting some money into global investments. The U.S. manufacturing sector has already shrunk due to the weak global economy.

All in all it seems to be more good news than bad for those wanting to invest or make big purchases such as a new home. “We’ve come a long way from the depths of the recession, but we’re still not quite back to where we’d like to be,” says Croushore, the former Fed economist.

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Invest in the Real Estate Market

For potential new home buyers, 2016 is the year to invest in the real estate market.  The housing market is still on the rise and there are still great deals to be found on new homes and resale homes. What is making real estate a hot ticket item for 2016?  There are many influences that are contributing factors to this year’s housing market.
Since the economic downturn’s departure, housing prices have been on the rise.  Zillow predicts home prices are going to rise a little slower in 2016.  According to Zillow’s Chief Economist Svenja Gudell prices are anticipated to rise 3.5%. This will give buyers who might not have had a chance in the competitive 2015 market an opportunity to purchase a home.

Jonathan Smoke, with Realtor.com believes this could lead to a succession of home buyers.  He states, “We have the potential for about six million home sales just through the months of April through September; that is basically impossible to do.”

Inventory will increase giving home buyers more options. “Because of the price appreciation they have experienced, you will have more sellers put homes on the market next year,” Smoke said.  Also the new home market will see growth in 2016 because builders are concentrating on the construction of starter and middle-range homes.  This boost in both existing home and new home inventory will make it easier for potential home buyers.  More homes on the market will also contribute to a slower price increase and less bidding wars.

This year we might be kissing cheap mortgages goodbye.  The Federal Reserve is slated to increase interest rates making this one of the last opportunities to benefit from record low mortgage rates.  Home buyers will have to cut back on their new home budget because the borrowing cost and monthly mortgage payments will be higher.

“You are likely to get the best rate you will possibly see, perhaps in your lifetimes through the majority of next year, but certainly, the earlier the better,” said Smoke.

The last influence to affect the 2016 housing market is rent vs. buy.  Renters beware; rent prices will still increase this year making it cheaper to buy a home.  The increase in mortgage rates will still outweigh rental pricing.  According to Ralph McLaughlin with Trulia, “Interest rates would need to rise to around 6.5% for the cost of buying to equal that of renting on a national level.” For those who want to purchase a new starter home, upgrade to a new home or larger home, and for those who want to downsize to a smaller new home, now is the time.

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