NAHB Survey Shows Desire for Better Amenities Among Remodelers

Among the many reasons for remodeling your home, the National Association of Home Builders surveyed homeowners and found that the top reason for a remodel was a desire for better / newer amenities.  In conjunction with this reason, homeowners’ second reason for remodeling their current home was a need to repair / replace old components.

In order for a home to feel like “brand new,” homeowners can largely do an overhaul of their existing space, replacing or adding trim, repainting, putting down different flooring, replacing cabinets and countertops, and installing new fixtures, lighting, and appliances. The desire for new and better amenities includes all of these activities and also includes installing new components whether they be new faucets, sinks, toilets, tubs, showers, shower stalls / doors, kitchen islands, and much, much more.  Unused wall space can include new cabinetry, a kitchen desk or mini-office, a butler’s pantry, or a built-in wet bar designed specifically for entertaining, complete with ice maker, refrigerator, and / or wine cooler.

Other reasons for remodeling your home can include wanting to avoid moving or buying a new or existing home for sale, the ability or desire to stay where you are – age in place.  If you have children, you may love the area in which you live, your kids love their school, and you like the school district, your neighborhood is desirable and your neighbors are your friends, and other reasons for “staying put.”  Your home may not no longer be meeting your expectations for comfortable living, but remodeling your home to give it a fresh look or even adding on more space in the form of an expanded family room area, a new sun room, a new patio / screened-in porch, a mother-in-law suite, or even an upstairs apartment above your garage could make your life and your family’s life more enjoyable.

Whatever your reason for remodeling your home, Ron Lee Homes in St. Tammany Parish can help.  We have added entire outdoor space, completely reconstructed kitchens and bathrooms, and created private master suites for more comfort while you age in place.  To get more information on renovating your home with Ron Lee Homes, call 985-626-7619 or E-mail Info@RonLeeHomes.com.

FHA Backed Loans Reported to Have Slight Increase

Certain pricing requirements, mortgage types, and age requirements are considered a trend for first-time home buyers.  Different housing market statistics are indicating that first-time home buyers may soon be increasing to pre-Recession levels. The first indication was a slight uptick in FHA (Federal Housing Authority) backed loans.  With the recent easement of FHA loan requirements including a lower percentage required for the down payment, more first-time home buyers are able to qualify for FHA mortgages.  The increase in FHA-backed mortgages went up to a 17% market share for a quarterly count of 23,000 FHA loans in the 1st quarter of 2016.

Pre-Recession Trends

 

Interestingly, in 2002 – 2003, well before the Great Recession, FHA backed mortgages were only 10% of the market share where in 2010, FHA loans had a 28% share of the housing market.  These statistics show a steady presence of FHA loans in real estate transactions.  It also indicates the necessity of a government supported loan program for struggling Americans who need assistance with their new home purchase.

Conventional home financing still makes up the majority of home purchases in America today.  For the first quarter of 2016, Conventional loans made up 68% of the homes achieved by home buyers.  The reason for this may be another market statistic which showed an overall increase of in personal income in the United States.  a 2.2% year-over-year increase for 2014 was reported with median income reported at $28,757.  This is 5.4% less than its high in 2007 right before the Recession, and it is still lower than income reported in 20000, but statistics show the trend of the total of personal income is and has been on the rise since it bottomed out in 2012.

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National Association of Home Builders Announces Positive Housing Recovery

According to the National Association of Home Builders’ (NAHB) Leading Markets Index (LMI), the national housing market is within a 5% range of complete housing recovery compared to what is considered a “normal” housing market which the United States last saw in 2006.  Out of a score of one, the latest LMI scored a .95 nationwide in housing recovery.

How is the LMI Calculated?

The way that the LMI makes a numeric determination is taking statistics of single-family housing permits, employment, and home prices calculated for the entire country and specifically 337 local markets.  Single-family home permits rose from .48 to .49, new home prices increased from 1.38 to 1.40, and employment rose from .96 to .97.  The really good news is that approximately 35% of the 337 markets have a score that exactly equaled 1 or is greater than 1.

The number of markets which increased overall in single-family home permits in a year-over-year comparison rose by almost 65%. Employment numbers increased 71%.  Three hundred twenty-four markets out of the 337 are now showing new home pricing that is considered normal according to the last data recorded in a normal real estate market in 2006.

For communities located in Louisiana, almost all counties accounted for were located in the top 20% of housing rankings.  Approximately 4 areas were in the top 60% – 80% rankings relative to normal housing numbers for new home permits, employment and new home pricing.  Louisiana overall experienced a far softer impact of the slowdown in housing market numbers of the Recession than other states in the United States.  Baton Rouge consistently ranks in the top 10 cities in the United States with the best recovery numbers to date.

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Real Estate Market Celebrates Statistics Which Indicate a Buyer’s Market

Real Estate Showing Buyer’s Market

In general, the real estate market seems to be turning more into a buyer’s market than a seller’s market – an indicator that the housing market continues its steady, slow rebound since the Recession.  New home buyers have cause for optimism with the increase in standing new home inventory which was upwardly revised for the month of March from 205,000 in March, 2015, to 246,000 new homes this year.  Currently, new home inventory stands at a 5.8 month’s supply.

Competitive Home Pricing

 

With the increase of available homes, new home pricing and existing home pricing are now competitively arranged in the housing market, making builders’ new homes for sale just as attractive price-wise as existing home pricing.  This trend of available new homes for sale is expected to continue as in the month of Market, there are approximately 149,000 new homes under constructions and 41,000 single-family homes that will be constructed according to the record of building permits throughout the country.  The building industry reported 56,000 move-in ready homes on the market ready to be closed.

New home pricing has also stabilized compared to new homes for sale in March, 2015.  The current new home median sales price is $288,000 where it was around $293,400 in 2015.  Overall, new home pricing gained in a year-over-year comparison, with homes in the $200,000 – $300,000 price range rising by 20% in comparison.

As new home inventory exponentially increases, and a high number of new homes “flood” the real estate market, new home sales are expected to increase in the months ahead as home buyers can expect to see a large variety of different floorplans, features, and upgrades available to them in making a choice of buying their new home for sale. Some buyers may choose to build their new home from scratch with a custom home builder such as Ron Lee Homes in St. Tammany Parish.  If you are interested in building your new, custom home, Contact Us at 985-626-7619 or E-mail Info@RonLeeHomes.com.

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Discover the Value of Homeownership in America

The value of homeownership has just been assigned a number based on information regarding homeowners in 2013 in the United State.  Owning your own home in America can save $100 billion in tax savings and deductions. Statistics showed that only approximately 11.4% of Americans who had a mortgage by owning a home that they occupied in 2013 did not take advantage of being a homeowner by deducting the mortgage interest that they paid from their federal taxes according to the Joint Committee on Taxation (JCT) and National Association of Home Builders (NAHB) analysis.

It cannot be emphasized enough the huge advantages of becoming a home owner in today’s economy.  In addition to the $296.2 billion that was claimed on Americans’ taxes, there was also the amount of $174.3 billion in real estate taxes that were claimed on taxes as well. Overall, people who owned homes in the U.S. in 2013 were able to trim their tax bills by over $100 billion dollars.  Mortgage interest deductions accounted for $72.4 billion in savings on taxes while real estate taxes equaled $30.2 billion.

These numbers don’t include individual state programs for making improvements and installing energy efficient, “green” products in their homes.  These deductions are specialized each year by both the state and federal government and typically have timelines and requirements on the amount of money that can be deducted.  The bottom line is that if you own your own home, you have a significantly better chance of saving money on certain home improvements than if you were renting your home.

Another advantage to owning your own home is that on-time mortgage payments will vastly improve your credit.  Just by owning real estate, your credit score will improve as soon you close on your home and log your first mortgage payment.  With better credit, you can expand your opportunities for loans and investments, thereby creating even better credit for yourself and your family.  As you pay more and more principle on your mortgage payments, you will see your home equity rise as well.  You can use an equity line of credit to make improvements to your home (and get those tax deductions!) which also increases your home’s value.  Real estate can be one of your greatest assets that continually increases in value, appreciation, equity, and opportunity if it is handled correctly as one of your greatest investments.  So, what are you waiting for – discover the possibilities of becoming a homeowner today!

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Louisiana in Top Tier of States Leading Housing Recovery Louisiana in Top Tier of States Leading Housing Recovery

NAHB Spring Construction Webinar Forecasts Strong Housing Growth

When comparing statistics in housing trends, the National Association of Home Builders place Louisiana in the top tier of states leading housing recovery nationwide.  The top states include Montana, North Dakota, and Utah, and the 2nd tier of states include Texas, Oklahoma, Louisiana, and Alaska.  There are several factors that contribute to Louisiana’s (and other states’) housing recovery.  Some states, such as the top 3 states of Montana, North Dakota, and Utah did not have as big of housing bubbles as other states.

Therefore, their “fall” during the Recession was not as great, so their housing recovery was faster and better.  States like Texas and Louisiana are mainly energy sector states, so the Recession did not cut as deeply into employment and statewide income as other states.  Baton Rouge, Louisiana, has consistently held one of the highest rankings in housing recovery since the beginning of 2015 which helps with Louisiana’s housing statistics.

“The basic principle remains the same,” said NAHB Senior Economist Robert Denk. “A strong economy – whether helped, hindered or unaffected by the energy economy – will be a key factor driving housing recoveries going forward.”

Economists predict that by the end of 2017, the top tier states will have a housing recovery of 102% of normal (based on statistics pulled of the housing numbers during the last “normal” housing market pre-Recession).  The bottom tier states will have recovered to just 65% of where they were before the Recession.  The reason for the predicted recovery numbers in 2017 is based on the underlying housing market fundamentals of population and job growth which are typical in driving supply and demand in real estate.  The cycles of “boom and bust” are mostly over according to Denk.

“A common theme has emerged,” said Denk. “The progress of market recovery is no longer a function of the boom-and-bust cycle marked by price bubbles, excess supply and foreclosures. The key driver of the housing recovery is now back to the underlying housing market fundamentals of population and job growth.”

Factors that will help builders and sellers to sell their new homes for sale and homes for sale are a predicted increase in household formation by home buyers that were previously unable to secure a mortgage, stabilized home pricing that now offers tiers of homes for sale available and affordable to purchase, less foreclosures, rising employment and the first increase in wages in over 8 years, and home prices that are in line with incomes and rents making it an easier transition from renting to owning.

If you are a new home buyer who is interested in building your own custom, dream home in West St. Tammany Parish, Ron Lee Homes in Covington, Louisiana, offers full-service home building strategies such as custom home design, engineered floorplans, complete “end-to-end” home construction supervised by Ron Lee, financing and insurance assistance, and a hands-on approach to building new, custom homes in the Greater New Orleans area.  For More Information, Call 985-626-7619 or E-mail Info@RonLeeHomes.com.

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Real Estate Trends in April Showing Growth and Good News

With the 22.6% increase of single-family home construction starts compared to the previous month and year of March, 2015, real estate nationwide has taken a very positive step forward.  In addition to a substantial increase in new home starts, there is good and bad news when it comes to new homes being built and put up for sale in the real estate market.  The bad news is that builders are finding it difficult to procure land to build new homes, as well as the labor required to start and complete a new home project in a timely manner.  On the flip side, that is also good news in that there are now a tremendous amount of construction jobs available for those trained and experienced in the construction industry.

The lack of land and lots to build also increases the new home buyers’ demand across the entire United States, making it so that builders are building new homes “on demand” for prospective homeowners.  Now home buyers are waiting on builders to supply new homes to buy whereas just a few years ago, it was builders waiting on home buyers to be able to buy a 1.5 years’ supply of new homes.

Existing home inventory currently in the market is also really tight according to the National Association of Realtors.  Right now, existing home inventory is at just a 4.5 month supply – really good news for sellers and Realtors, but not such good news for home buyers.  However, existing home sales increased 5.1% in March, despite the dearth of homes available to buy.

If home buyers are in the market for a new home and can afford to wait to be able to build their dream home, they may consider buying a new custom home from local builder Ron Lee Homes in St. Tammany Parish.  Custom homes built by this award winning builder are “worth the wait,” and by using Ron Lee Homes, buyers get full-service attention on the new custom home building process.  Ron Lee Homes designs floorplans, builds new custom homes, assists with financing, and literally walks home buyers through the home building process from start to finish.  So, if you would like to Consult with a Custom Home Builders in West St. Tammany Parish, Call 985-626-7619 or E-mail Info@RonLeeHomes.com.

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