New Challenges For New Home Construction

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

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

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

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

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

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

Click Here For the Source of the Information.

The Celebration Must Go On... Mardi Gras During COVID 19

 St.Tammany is keeping Mardi Gras 2021 alive this year in a special kind of way. Two Northshore krewes spread the "house float" idea that a New Orleans resident originated. Megan Boudreaux, an insurance agent in New Orleans, came up with the idea to keep Mardi Gras going through decorating her house as a float. She posted on social media to share her idea with a few friends and the idea spread from local New Orleans up to the Northshore and now has made its way to parts of Alabama and Mississippi.

“Everyone loved the idea and wanted to jump in to make their own house floats,” she said. “A shop owner decided to call her theme Yardi Gras, and it just exploded from there.”

The idea has been making its way through neighbors and friends who have been decorating their homes and office buildings to resemble floats. Many residents are also decorating their yards calling it Yardi Gras and for animal lovers, Mardi Paws is decorating doghouses and will have an animal costume competition.

Covington residence Gina and Buddy Campo decided to decorate their house as a part of the "Northshore House Floats" and Covington-centric "Rollin' on the Three Rivers" krewes. The Northshore House Floats theme is special vacation spots so the Campo's decked their home with a Jamaican flare calling it "Jamaican Me Crazy."

To keep with their Jamaican theme, they created a thatched roof dog hut in honor of their three doodles Bourré, Dani and Gabbie Roux. The three were dressed up and photographed for the Mardi Paws' Mardi Gras Costume Competition.

The community wants to lift Carnival spirits and is doing a great job of keep Mardi Gras alive this year.

Click Here For the Source of the Information.

Three Trends That Changed in 2020 When It Comes to What New Construction Buyers Want

 Zillow Consumer Housing Trends Report 2020 data shows some changes from what buyers want in a new construction home. More buyers are purchasing new construction homes now more than last year. The survey revealed that 40% of new construction buyers that were surveyed only were interested in new construction homes. Here is what has changed in a new construction buyer's mindset in 2020.

Smaller, less expensive options gaining appeal

Those new construction buyers surveyed showed that they are choosing smaller homes. A small home is considered a home with less than 1,000 square feet. In 2020, 9% of new construction buyers purchased a small home which is 6 percentage points higher than in 2019.

This change might have stemmed from more houses being built in urban areas or home builders swapping size for more upgraded options. One definite catalyst is the price buyers want to pay for a home. In 2019 9% of new construction buyers paid less than $100,000 for a new construction home and in 2020 this jumped to 19%. The growth in households buying less expensive new construction homes coincides with a 10-point drop in the share of buyers who pay between $200,000 and $299,000 — 21% of NC home purchases fell in that range in the 2020 survey, compared to 31% in 2019.

A shift in home feature preferences

In 2020 many homebuyers are still looking for many of the same top features as in 2019 such as air conditioning, the preferred number of bedrooms and bathrooms and preferred floor plans. There were some changes to new construction buyers' preferences in 2020. Buyers were looking for rental income, smart technology and space for cars.

Close to 32% of new construction buyers are looking for a home that will generate rental income. Those that only wanted to rent a portion of their home (home-sharing) grew to 27% in 2020.

Nowadays smart technology is a big part of society in many aspects. New construction home buyers have placed importance on smart technology in their homes. In fact, 45% of new construction home buyers felt that having smart home capabilities was extremely important. Homebuyers want devices that provide everything from security to temperature control.

Having a place for a car has become a must in 2020. Seventy-four percent of new construction buyers say that off-street parking or a garage is one of the top must-haves and 67% said a parking space is also on the list. These items came in 6 points higher in 2020 than reflected in 2019's data. As mentioned before, urban new construction is on the rise and there is always a scarcity of parking in the city.

Top reason for buying new construction

In 2020 new construction home buyers place the top reason for purchasing a new construction home is for the free builder upgrades. In the survey, 14% of new construction buyers said free builder upgrades swayed their decision to purchase new construction. Still in the top reasons were desirable location at 39%, appealing home features at 38% and everything new and never used at 37%. Buyers want to have the ability to customize features on their new home.

If you are in the market for a home, consider a new construction home. Always use a Realtor who can help you with the building process as well as the purchasing of your new home.

Click Here For the Source of the Information.

Small Tasks You Can Do All Year To Keep Your Home Clean and Organized

 

Little chores can add up to big results in your home, just taking one small task at a time can keep your house in check. Here is a great plan to follow that will help accomplish this. 

Weekly Home Maintenance

Here are some great tasks to tackle each week. Floors are a big area of your home. Vacuuming your carpet or dusting your hardwood floors each week can make a big effect. Taking about 30 minutes a week on small tasks in your yard can do wonders for your curb appeal. Pruning your shrubs or trees, blowing or raking leaves up, cleaning up debris from your sidewalk, and painting your mailbox are examples of a few of these tasks.  

Bathrooms are a big traffic area in your home and can be a breeding ground for bacteria. Along with cleaning your bathroom, take time to also make sure your drains are cleaned and not clogged. A good tool to use for this is a Zip-It tool. Along with cleaning your shower, renewing or repairing dingy or damaged tile grout can also help with your bathroom’s esthetic looks. Something that is not thought of is the build-up in your shower head. This can hinder your flow of water. Cleaning the mineral sediment out of the showerhead will help with water flow.

They say the heart of the home is the kitchen. This is another area that can use some weekly maintenance. Freshen up your garbage disposal each week to eliminate odors. A good way to do this is to take a tray of ice cubes, baking soda or lemon rinds and run them through the disposal. Cleaning the outside of your appliances can freshen up the kitchen. Take it a step further and clean the insides each week as well. Take one appliance a week in the kitchen. For instance, clean out your refrigerator one week and then your dishwasher the next and the following week could be the oven.

Monthly Home Maintenance

Rome wasn’t built in a day. Some projects can be done monthly and still keep a house clean and organized. The range hood in your kitchen can get really dirty. Every month check the filter and clean the hood. Grease and dirt can build up and cause a thick layer which is hard to clean but cleaning it monthly can help resolve this. A good way to help with utility bills and keep the air quality up is by changing your furnace’s filter each month. Dust collects overtime around the house. Dust is not healthy for you or pleasing to the eye. A quick fix is to polis wood furniture, dust light fixtures and wipe down your home’s baseboards each month.

Safety concerns can also be addressed each month. Check your smoke and carbon monoxide detectors to make sure the batteries are good and they function. Another thing that can be overlooked is your fire extinguisher. Check to make sure it is fully charged each month. Take some time each month to also inspect the outside of your home. Make sure there are no problems or issues that need to be resolved. Things to look for are loose shingles, damaged siding, insect nests or overgrown trees or shrubbery.

Yearly Home Maintenance

Bigger tasks that can be done once a year can be done in one or two days each year or during each change of season. Typical projects include cleaning and organizing your garage, basement or attic. Get rid of unwanted items and find some treasures that you had forgotten about at the same time.
Springtime is a great time to wash your windows and screens. This will let more light into your home. Clean your gutters and make sure it is clean under the eaves. Remove ways for pests to enter your home. Remove shrubs or trees that encroach your home. Also, make sure there are no holes to let litter critters in and if there are install wire grates over the holes.

Each season you can choose a room to freshen up. A great way to do this is to give it a “mini-makeover.” Do this by repainting a room, moving furniture around or adding new plants and knickknacks. In just a few years, your whole house will be done!

Remember that keeping it simple and smart is the way to go.

Click Here For the Source of the Information.

CoreLogic Predicts A Drop in Home Price in 2021

CoreLogic, a company that provides consumer, financial and property data analytics and services to business and government, forecast a downturn in home prices in 2021. Even though COVID-19 has not affected the current housing market, the company suggests a dip this summer because of the negative impact the coronavirus has had on the economy as a whole.  

June 2020 saw a rise in home prices annually 4.9% and 1% month-over-month. According to CoreLogic’s Home Price Index, June 2020 saw the highest growth rate for the month of June since 2013. Part of this growth stemmed from the respective year-ago price growth rate of 3.6%. The Home Price Index has been on the up ever since bottoming out in March 2011.

Their prediction for June 2021 is a decrease by 1% in home prices. CoreLogic feels their prediction is relatively strong because of the housing market’s reliability on entertainment, tourism and hospitality. They forecast Las Vegas to have an 11.3% drop in home prices by June 2021.

“Home price appreciation continues at a solid pace reflecting fundamental strength in demand drivers and limited for-sale inventory,” Frank Martell, president and CEO of CoreLogic, said in a press release. “As we move forward, we expect these price increases to moderate over the next twelve months. Given the economic outlook, housing remains a bright spot for the foreseeable future.”

So far, this has the housing market has not seen a dip in prices. The record-low mortgage rates and buyer demand has fueled the current market. Surprisingly, homes are very affordable even though there has been a steady price growth.

Click Here For the Source of the Information.

Home Owners Focus on Home Improvement Over Travel and Entertainment

The recent pandemic has changed home owner’s points of view on many aspects of homeownership. HomeAdvisor’s latest survey “State of Home Spending”, showed the average spent on home-improvements in 2020 rose to $13,138 from 2019’s $9,081.    

Although the survey says higher cost in labor and materials contributes to the higher number, it still shows an increase in American home owner’s spending average on actual home improvements. The National Association of Home Builders (NAHB) reported that 85% of Americans are spending more time at home because of COVID-19. Their spending habits are shifting from travel and entertainment to home improvement projects.

The housing market is hot and the increase in home buying has also fueled home improvement spending. Millennials, (those closest to the median age of first-time homebuyers) have been reported to have increased in home buying.

“Homeownership rates for millennials have jumped significantly, especially as COVID-19 has reemphasized the importance of the home and many companies move to flexible work location options,” said Mischa Fisher, chief economist at HomeAdvisor, in a press release. “Millennials are not only rapidly becoming home owners, but they are also spending more on home improvement than any other generation when they do.”

Those projects that have been important in 2020 have changed from those in 2019. The top 2020 projects were interior painting, bathroom remodels and new flooring installations. The top project which has made the list the last several years did not even make it onto the 2020 list. Prior years those that were surveyed by HomeAdvisor said that room remodels were the most important project.

The home maintenance project that saw the biggest increase year-over-year was cleaning and landscaping. The more everyone was at home with the stay-at-home orders, the messier the home could get. Cleaning and landscaping saw an increase from $1,105 in 2019 to $3,192 in 2020.

According to the survey, “painting was one of the most popular projects across nearly all age groups, because it is relatively affordable and offers a lot of visual value in terms of the look and feel of a room.”

American’s perspective on their home has changed dramatically in the wake of COVID-19. In fact, seven in ten respondents said that the pandemic had increased their need for home cooking, 50% were working from home and 40% were incorporating more home entertaining. The “State of Home Spending” survey summed up that home owners are using their home more and more and it has definitely become an even greater factor in their quality of life.

Click Here For the Source of the Information.

 

St. Tammany Parish's Future Looks Bright Even Among the Pandemic

St. Tammany Parish Development District hired Chris Masingill in May 2018 to be the CEO of St. Tammany Corp. St. Tammany Corp. was developed to create partnerships and opportunities to help the parish prosper. The company is the lead economic development organization in St. Tammany Parish.    

When Masingill began his position as CEO, St. Tammany was on an uphill path with a great local economy, many prospects and partnerships in the works that could bring the parish additional jobs and the parish’s performance was well above standards. Today, the parish’s prosperity has taken a hit by the stay-at-home orders and social distancing guidelines the novel coronavirus has brought on.

Masingill is being proactive and has a plan in place to hopefully return to pre-pandemic levels of prosperity and keep on a positive track for the future. Masingill is focusing on what can be done in the future to best ensure the parish remains a place of choice to work, live and play for decades to come.

St. Tammany’s unemployment rate dramatically rose in 2020 because of COVID-19. During the height of COVID-19, 50,000 St. Tammany residents sought unemployment benefits. Many of the parish’s industry sectors were hit very hard. Those that were hit the hardest were hospitality, tourism and restaurants. The Ceo explains that the parish’s revenue has been reduced but some of it is slowly returning. The parish might not see as much motel/hotel sales tax nowadays but taxes from grocery stores and hardware stores have spiked.

Masingill reports that there are some companies that are busier than ever because of the change in spending habits due to the novel coronavirus. In St. Tammany, the logistics, transportation, warehousing and distribution sectors have boomed. The parish has thrived in this industry because of its geographic positioning and the talented workforce it has living among it. Masingill believes this shift is because the global supply chain has changed. “Even with the vaccine coming online and the economy getting energy behind it, there’s little doubt that some things about the way we do business have fundamentally changed forever,” he relays.

People are currently hiring and job postings for the month of November 2020 were at 7,000 unique postings. St. Tammany residents are still spending money and there is a rebound in consumer confidence but the recovery will be slow. We should understand that there will be ups and downs to the long-term recovery. “There is no quick fix. We’re talking several more months, and some people predict several years, before we see the same level of economic activity we saw in 2019,” Masingill states.

St. Tammany is very lucky that it is home of some of the most educated people in the area. It is reported that 40% of the residence in St. Tammany hold a college degree. Masingill wants to focus on keeping its residence local to work and not go out of the parish for employment.

It is in the perfect location and the parish has access to things people want. The parish is in the top 10% of the most populous counties/parishes in the United States. Masingill continues to keep the area in the top 10% and believes that quality of life is just as important as sustainable growth, job creation and business development. “You want a nimble and resilient community. If you have that, you can rebound that much more quickly when things like a pandemic happens, when a hurricane happens.”

Overall Masingill feels that balance will be the success of St. Tammany’s robust economy. “There’s a balance. (You have to be in the middle.) That’s the sustainable and smart approach. We want our kids and grandkids to either stay here or have a place to come back to where they can reap the benefits and enjoyment of a place where they can have access to the things they want. That’s educational opportunities, job growth and expansion, a place to enjoy all the things our community has to offer,” says Masingill.

Click Here For the Source of the Information.