Custom Homes Trend Down Slightly From All Time High

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As the economy began to recover, custom homes led the way in housing market statistics.  In 2009, the percentage of custom homes being built by an owner, contractor, or builder on the owner’s land – a single, custom home built with collateral – was 31.5%, a record high amount of custom homes being built.

For 15 years, most builders and owners had shied away from building one custom home at a time, however the financial constraints of the Recession brought this trend back in 2009.  The reason that builders were not building 0-609 Lake Circle Front Exteriorcustom homes was because they could build spec homes on credit before the Recession.  However, builders were unable to build spec (inventory) homes because of the overwhelming restrictions on lending following the Recession.  The typical AD&C credit for new home starts without a pre-sold contract was simply unavailable.  Therefore, this custom home building trend for individual builders and individual owners continued until just recently when the housing market started to make a full recovery.

Now, builders are able to build spec homes once again, and the capital that has been built up by new home builders by the selling of new home inventory that had been sitting stagnant for many years has loosened up the purse strings for builders to now reverse the custom home trend.  Also, lending restrictions have eased slightly as well. As a result, the percentage of the housing industry that includes the construction of custom homes has dropped back to 21.9%.

At Bedico Creek Preserve, a master planned, Conservation Community in St. Tammany Parish, our builders build both inventory homes and custom homes for new home buyers on the Northshore.  Our buyers come from Mandeville, Covington, Abita Springs, and Madisonville. We also have around 30% of interested buyers from the Southshore in New Orleans, Metairie, & Kenner.  The reason for this diverse audience of interested home buyers is because of the 16 available builders that build new homes and new, custom homes in our subdivision.  We also offer lots for sale in 7 different, distinctive Neighborhoods in a variety of price ranges and sizes.  Bedico Creek offers something for everyone, so if you have not already had the chance, Come Out & Visit Our Community to Discover the Preservation of the True Northshore Lifestyle.  Call 985-845-4200 or E-mail Info@LiveBedico.com.

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Generational Amenities Wanted in New Home Community

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You wouldn’t think that 20-year-old home buyers would have the same desires in their new home community as, say your 85-year-old neighbor across the street, but according to a study done by the National Association of Home Builders (NAHB) called Housing Preferences of the Baby Boomer Generation, all age groups showed a strong inclination about the following three factors when deciding where to buy a new home:

  • Live in a Suburban Community
  • Close Proximity to a Park Area
  • Access to Walking / Jogging Trails

While there is not much else that Seniors (born before 1946), Baby Boomers (born between 1946 and 1964), Gen-Xers (born between 1964 and 1979), and Millennials (born after 1979) have in common.  There are a plethora of seminars and self-help classes that employers can attend to “understand” the Millenials and what they want.  However, when it comes to the concept of homeownership, there seems to be common ground about how home buyers perceive the lifestyle and community in which they want to live.  It seems common sense that homeowners don’t want to spend a lot of time in traffic traveling to suburban areas to purchase groceries, go out to eat, go shopping, or have a night on the town.  Also, an active lifestyle encourages better mental abilities, better physical shape, and simply makes you feel better as a person.  It’s not such a stretch to think that a person considering buying a new home wouldn’t look for these qualities in a new home community.

The entire concept of these amenities is how Bedico creek Preserve’s “community construction” was designed.  Instead of clearing a space for “humans” to live, Bedico Creek decided to build and adapt to nature’s landscape by constructing a lifestyle community into a wildlife habitat and nature preserve.  The development of this master planned community is called Conservation and Green Living and is purposeful in its preservation of the green spaces, wetlands, trees, waterways, and ponds and lakes that make up the community.  When you buy a lot and build a new home in Bedico Creek Preserve, you not only get to enjoy your own backyard, you also get to view and enjoy 500 acres of open space.

The designers of Bedico creek also built walking, jogging, hiking, & biking paths throughout the community for our residents to take full advantage of nature.  Offering 9 different Neighborhoods of lots and new homes for sale, our community is also located in close proximity to a huge retail complex, “big-box” store, stand-alone “mall stores,” and dining, shopping, and entertainment in Covington, Louisiana.  Be close to town, but also enjoy the parks and recreation at our new home community in St. Tammany Parish.  For More Information, Call 985-845-4200 or E-mail Info@LiveBedico.com.

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New Home Pricing Up in the Greater New Orleans Area

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One of the clear indicators of a healthy housing market is home pricing.  Whether it is new home pricing or prices of existing home, the price of homes in any area can give a clear picture as to the health of that area’s housing market.  While coming out of the Recession, many economists kept a sharp eye on housing prices because of the constant, steady, and sometimes sharp increases in home prices.  If prices went up too much, too fast, there was a danger of a “double-dip” Recession because the housing market would create what is called a housing bubble – inflate home prices and then tumble leaving homeowners in homes that were not worth as much as the price for which they were purchased.

The good news is that prices stabilized in the housing markets nationwide about 6 months ago, and local St. Tammany Parish Home Pricingcommunities have been enjoying nice profits on homes that previously were not selling with as much regularity.  Taking a look at the Greater New Orleans area pricing, Wade Ragas, of Real Property Associates, who authors the twice-yearly report regarding real estate trends, reported that New Orleans pricing, especially in historic neighborhoods, jumped 14% during 2015.

For many people, this price range became unattainable, and many home buyers started looking to the suburbs of New Orleans such as Jefferson Parish on both the East Bank and the West Bank, St. Charles Parish, and St. Tammany Parish.  However, even though prices were a bit more affordable in these outlying suburbs, pricing in these other parishes also increased during 2015.  St. Tammany Parish home pricing rose 4% from $103 / square foot to $110 / square foot.  The average price of a house in St. Tammany Parish in 2015 was $242,442, up 3.2% from 2014 which saw an average house price of $234,818.

According to Ragas, two things will impact the Greater New Orleans housing market moving forward – oil prices and interest rates.  Oil prices have been slightly volatile, causing layoffs and reducing the price per barrel of oil.  Mortgage interest rates are still at historic lows even with the Fed recently raising the interest rate, so now is still the right time to make the investment in a new home or an existing home in the Greater New Orleans area.

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Protection of the Impact of the Housing Market on the Global Economy

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In the United States economy, the real estate industry is a vital component of the amount of money that is brought into not only our local, national economy but also the world economy.  The impact of the housing market on the global economy was felt worldwide when that market crashed and caused the worst Recession since the Great Depression. Even before the crash, the National Association of Home Builders (NAHB) has been a steadfast organization in promoting the health and well-being of the home building industry to national leaders of Congress.  On an almost quarterly basis, the NAHB schedules meetings with leaders in both houses of Congress to go over the latest trends, legislations, regulations, and overall health of the housing market.

This constant communication between leaders of the housing industry and leaders of government is an almost unheard of attention to detail of which most everyday citizens in the United States are unaware.  The care and NAHB Government Meetingattention that goes into maintaining the health of the real estate industry must not be underestimated which is why the selection of the Political Action Committee (PAC) for the NAHB is so vital to the industry.

During the 2nd week of February, NAHB Chairman Ed Brady and First Vice Chairman Granger MacDonald met with Senate Majority Leader Mitch McConnell (R-Ky.); Senate Minority Whip Dick Durbin (D-Ill.); House Majority Leader Kevin McCarthy (R-Calif.); House Minority Whip Steny Hoyer (D-Md.); House Appropriations Committee Chairman Hal Rogers (R-Ky.); House Financial Services Committee Chairman Jeb Hensarling (R-Texas); and Rep. Ben Ray Lujan (D-N.M.), chairman of the Democratic Congressional Campaign Committee.  The real estate discussions included home buyer credit, affordable homeownership for the middle class, and the regulation of health care costs to offer reasonable solutions to “balance Americans’ budgets” so that they can afford to pay a mortgage.

This meeting of minds was conducted in order to keep two-way communication open as well as to prep government leaders for the  Bringing Housing Home™ NAHB Legislative Conference during the week of March 7-11 when our members will hold in-district meetings with their lawmakers.  Click Here for More Information about this conference.

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