Here at Bedico Creek Preserve, we are about information for our builders, our buyers, our homeowners, our partners, and our vendors. If you are looking for a dependable source of information about real estate in Southeast Louisiana, specifically the Greater New Orleans area, please use our blog as much and as often as possible to read informative and timely real estate information. We promise you, you won’t be disappointed!

New Home Sales Are Still Climbing

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The New Year started off right when it came to new home sales as they rose 7.2% from December 2022 according to the US Census Bureau and the Department of Housing and Urban Development. This makes the seasonally adjusted annual pace at 670,000 homes. This is great news but is still down 19.4% on a year-over-year basis.

“January marked a surge of people signing contracts to buy new homes. The increase in contract signings can be attributed to a decline in mortgage rates in January after a run-up in rates in October and November. Rates have bounced higher since January, which likely is acting as a drag on new home sales in the meantime,” according to Holden Lewis with NerdWallet.

“The backlog of new construction homes continues to emerge into the market just in time for the spring shopping season. Many home builders are offering incentives to buyers sweetening the deal just enough to bump sales from the month prior,” said Nicole Bachaud, Zillow’s senior economist.

This caused a price drop which landed the median new home sales price to drop to $427,000 in January 2023. As far as the different regions, the sales price on a month-over-month basis was down 25,000 homes in the Northeast, 67,000 homes in the Midwest and 127,000 homes in the West. The South had jumped 17.1% to 451,000 on a monthly basis and the West was the largest drop at 46.9%

“There is still a large chunk of new construction homes currently under construction, and when those homes hit the market, especially over the next few months, we will see spring home buyers – those who can afford the higher new construction price tags- having more options and opportunities to break into homeownership,” says Bachaud.

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Home Builders Are Confident in 2023

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CNN reported that January has seen an improvement in home builder confidence. In fact, it was the first uptick since it has been falling for the past year. 1057 Cypress Crossing is under construction in Madisonville, close to New Orleans. Beautiful arched windows and brick exterior are just two custom features.

Construction prospects are improving and this is good news for homebuyers in the housing market. For the past several years potential buyers have been facing a battle due to low inventory. According to the National Association of Home Builders/Wells Fargo Housing Market Index, the current sales, buyer traffic, and the conditions for the sale of new construction homes are improving.

Even with spikes in construction costs, shortage in building materials, and harsh affordability conditions, builders are starting to look up. The National Association of Home Builders/Wells Fargo Housing Market Index, which * is meant to gauge market conditions reported that builders’ confidence went up from December to January. December reported the lowest since 2012.

“It appears the low point for builder sentiment in this cycle was registered in December, even as many builders continue to use a variety of incentives, including price reductions, to bolster sales,” Konter said. “The rise in builder sentiment also means that cycle lows for permits and starts are likely near, and a rebound for home building could be underway later in 2023.”

“In the coming quarters, single-family home building will rise off of cycle lows as mortgage rates are expected to trend lower and boost housing affordability,” he said. “Improved housing affordability will increase housing demand, as the nation grapples with a structural housing deficit of 1.5 million units.”

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2023 Housing Market Predictions

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There is light at the end of the tunnel hopefully for potential homebuyers. According to professionals in the industry, the trends are shooting toward more affordability.

“Americans finding ways to make payments on a roof over their heads will drive the market next year,” says Zillow chief economist Skylar Olsen. “Affordability is going to be the biggest factor in housing for 2023, but there’s room for optimism on that front if mortgage rates recede.”

Those in the industry have five housing market predictions for 2023.

1. Housing affordability will improve slightly

Those in the industry say there are signs of both the home inventory and monthly mortgage cost will stabilize. Home values should not go down, but they will not keep skyrocketing to space. In fact, national home prices are predicted to remain flat, and they may even fall in some areas.

Inflation is showing some signs of easing up and mortgage rates are starting to also dip. The mortgage rates will continue to go up and down which can cause stress to the housing market.

2. The Midwest will grow in demand

The Midwest has not seen the home price increases like many of the other regions in the US. Professionals believe that this will attract homebuyers to the Midwest. Places like Iowa, Missouri, Illinois, Kansas, and Ohio have more affordable homes.

The mortgage-to-income ratios in many Midwest cities such as St. Louis, Missouri, and Toledo, Ohio, make them the perfect place for first-time homebuyers. There are also more sellers willing to list right now in these areas which mean there is more inventory than in most regions.

3. More friends and family will buy homes together

According to Zillow, 18% of homebuyers have purchased with a friend or a relative who was not a spouse. Buying with someone else helps with your debt-to-income ratio and helps with a larger down payment. The seller’s market has pushed buyers into thinking creatively.

4. New construction buyers may have more choice — and even bargains

Builders’ sentiment is rising and it is leading to more homes being built. A rise in new construction can mean better discounts for potential home buyers. It is reported that new homes under construction are up 50% since February 2020.

5. More homeowners may leverage their home as a source of income

Rental prices are rising higher right now than home values. This means that your home could net you income by renting it. Your rental income will more than likely be higher than your mortgage payment.

In a 2021 survey of home buyers, one-third said they were purchasing just to rent out the home. The record low mortgage rates in 2020 and 2021 made it easier to purchase second homes as income producers. If you are worried about finding a renter for a home, Zillow Rental Manager is your solution. Zillow Rental Manager allows you to screen tenants and collect rent payments. You can post your rental online and on the app for free.

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Unusual Events Covered by Homeowners Insurance

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When you think of events covered by homeowners insurance, you think of fires, break-ins, tornadoes etc. just to name a few common losses. Most homeowners know the general things that it does cover.Nice custom home with fully landscaped yard. This home has a side entry garage.

The top property damage is by fire or weather according to the Insurance Information Institute III. There are other top claims which made the list. These include wind and hail damage, freezing pipes, and lightning.

Homeowners may not know everything that an insurance claim will cover and many are damages are surprising. Your insurance agent will know these things and can educate all policyholders on uncommon losses. They can also educate policyholders on what is not covered in a typical homeowners insurance policy such as earthquakes and flood damage.

Things that fall from the sky are covered. This can be damage from meteors or airplane parts. Homeowners surprisingly do not need a separate policy for damage from volcanic eruptions. Spoiled food, if rotted due to a power outage is covered by your homeowner’s insurance. Pet bites or attacks are also covered under a homeowner’s insurance policy. If you need to relocate during repairs after an event such as a fire, your hotel expenses can be covered.

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Details That Separate a Primary Suite From a Five-Star Retreat Primary Suite

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The primary suite can be called a master suite, owners suite or whatever you like, but no matter what you call the space, there are many distinct differences you will find from a regular bedroom and ensuite bath. An owner’s suite should be decorated and designed with the owner in mind. Here are five distinct features that when added to a master suite makes the space a five-star retreat. Many upgrades in the primary bedroom.

1. A Sitting Room Where You Can Relax

A dedicated sitting room is an added bonus to your owner’s retreat. You can make the space both elegant yet cozy. When decorated your sitting room, choose richly hued colors that will keep the space close and cozy. A sitting area should have its own decor apart from the rest of the master suite. A good way to link the areas is to use the same window treatments such as nice draperies throughout the master suite.

2. Closets with Advanced-Tech Appliances, so You’re Always Impeccably Dressed

Just like location is important to real estate, the closet is important to the bedroom. In fact, most people would agree that you can never have too many closets. A master bedroom must have a nice walk-in closet and a good bit of the space’s square footage is dedicated to it. To make it even better, many master closets now have high tech clothing care appliances. These include an all in one washtower that can both wash and dry clothes. Since it is a single unit it takes up very little space.

3. A Private Courtyard for Peace and Quiet

A private courtyard is a great way to add outdoor space to your master retreat. This can be a space that is only accessed by the owner’s suite. A great example would be to add accordion style glass panel doors to the sitting room. These doors can open up into a nice private courtyard area. This can be a great place to sunbathe, do yoga, or play with your pet.

4. A Personal Coffee Bar to Make Mornings Brighter

Being able to have coffee at your fingertips right when you get out of bed would be a great feature for the master suite. A built-in coffee bar in the primary suite is the perfect touch. A nice little area with a counter and an under-counter refrigerator will complete the space. That way you have a place to put your cream, cold brew, water or cocktail ingredients.

5. A Mini Art Gallery to Showcase Cherished Pieces

A great way to show off a homeowner’s personality is through their art collection. A perfect spot to do this in a primary suite is in a hallway that connects the primary suite to the rest of the home. The hallway can be treated as a gallery to display the homeowner’s treasured pieces. This is the perfect space because this is a place that homeowner’s truly spend the majority of their time.

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Several Benefits of Electric Heating

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Colder weather brings many indoor nights and days during the winter. Homeowners try to prepare for the seasonally higher energy bills which depending on which part of the country you live in can be very expensive during the wintertime. Here are several benefits from professionals as to why you should try electric heating.A nice fireplace that is surrounded by a brick mantel.

First, a Few Fundamentals

Emissions reductions is a very important topic for today’s policymakers and electrification is a way emissions can be reduced. Many homeowners are switching to electric to help save the environment and save on energy bills.

“Homeowners are becoming increasingly aware of the governmental perks and tax rebates to reduce fossil fuels – specifically with the recently announced Inflation Reduction Act. Within the bill, homeowners are encouraged to adopt electric heating systems like the heat pump in order to take advantage of government offered incentives,” says Mark Woodruff the senior outdoor product manager of Trane.

According to the Department of Energy a heat pump will give you around one and a half to three times more heat in your home using less electric energy itself to produce the heat. Heat pumps take the air from the outside and move it into the home. You are using less energy and saving on costs plus reducing the greenhouse gas emissions.

What Equipment Will I Need?

That depends on your climate. “Region and climate matter when finding the right system for your home and saving energy,” according to Woodruff. If you live in a mild climate then you can get heat off just a heat pump without a furnace. A variable-speed heat pump will automatically adjust so there will not be any temperature swings. Colder climates would use a dual-fuel or hybrid solution. A variable speed blower motor adjusts its speed to provide a consistent warm flow of air.

“By delivering the precise capacity the home needs, Trane’s heat pump maintains much tighter temperature control, which has been field-verified to be within 0.25 degree Fahrenheit of the thermostat set point, yielding optimal comfort. By always delivering the minimum capacity that the home needs (no more and no less) instead of cycling on and off, the unit runs at significantly higher operational efficiency and at a lower sound level,” explains Woodruff.

Are Electric Heating Systems Easy to Use?

These days, systems have energy transition feature thermostats which are great for reducing energy use. The system itself is hooked up to several controls and sensors that will keep the temperature and humidity at the perfect spot. These systems can be programmed to run more while a homeowner is at home or less when they are away.

A homeowner can even adjust their system via smartphone, laptop or tablet with the Trane colorful touchscreen thermostat allowing the system to be adjusted from anywhere! You can also link your system to Alexa or Google Home so you can adjust the system by talking. There are some top of the line systems that do come with remote diagnostics, which keeps your system running smoothly. Your HVAC company can remotely access the data on your HVAC to troubleshoot.

Remember owning an electric system can improve your quality of life and save you money. They are energy savers, cost savers, eco-friendly, easy to use, and versatile. “Compated to a traditional furnace and air conditioner heating and cooling setup, a heat pump can save you as much as $526 a year in energy costs,” says Woodruff.

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