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!

COVID-19 Has Changed the Way Builders Regard Floor Plans

The COVID-19 global pandemic has put a spin on the way people look at their home’s space.  The stay-at-home-orders shifted a home’s space to serve more purposes than ever before. Before the pandemic, home was a place where we returned from work, school and any daily activities but now it has become the place where we work, go to school and live out our days. Builders have now changed the way they are designing homes to incorporate these changes into the floor plans. Here are five ways home designs are changing.

Every room needs to serve multiple purposes

Working from home or remote learning demands a quiet space. According to Jennifer Pyatt of Indianapolis-based Pyatt Builders, she is seeing the use of barn or pocket sliding doors.  This feature allows for privacy in an open concept floor plan where space is still needed. Zillow design expert Kerrie Kelly believes that the whole home will be used in multi-purpose ways such as a guest room turned into a wellness studio or a dining room becoming a game room.

No home office? No thanks

If you work from home and are a parent this can be really challenging.  Parents need a dedicated space for work that is separate from their children. Zillow did a survey that revealed that two-thirds of those surveyed are working from home from an area that is not a dedicated home office space and a dedicated space is on the top of their wish list.

Designing for health and cleanliness

Now more than ever everyone is conscious of germs because of the spread of COVID-19. As of now, builders are integrating touchless faucets and self-cleaning toilets into their building plans but this is just the tip of the iceberg. “Just wait until the floor tile takes your temperature and the bathroom mirror checks your vitals,”  says Kelly.

Builders are already coming up with ways to build mudrooms with sinks off the garages so that before anyone enters they can get clean.  Other ways are by building more en suite bathrooms, using easy-clean flooring and building larger foyers for space to take off shoes before entering the home. Air quality is also a must: “Air cleaned by a UV light system in the HVAC can help minimize the risk of spreading germs,” notes Joe Klusnick, marketing director at Blue Mountain Communities in Northern California.

Yards need to be useable year-round

The previous year has been tough with having to stay at home 24/7.  Getting outdoors and enjoying nature is a great way to improve wellness. A good way to go about this is to turn part of your backyard into a functional room. Building an outdoor kitchen, a covered patio or a play area are all great ways to use your outdoor space for play, entertaining and cooking. Todd Pyatt, President of Pyatt Homes, agrees. “Motorized, retractable screens, heaters and fans, now considered luxury options, will become more essential because they allow families the freedom to be outside across the seasons.”

When everything happens at home, there’s more to store

Everyone staying at home has caused more of a footprint.  When you are eating every meal at home, your pantry space becomes a bigger issue. Builders are incorporating larger pantries in new homes. Closets can now serve as multi-purposes throughout the day. They can work as a home office, gym and even a classroom.

To make sure you find the right home that fits your wish list for a fair price, contact a Realtor in your area.

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New Construction Homes Are in Demand but Face Many Challenges

The current housing market is strong and new construction homes are in demand. In fact, builder confidence is on the side of new construction as sales have blown expectations. The new construction interest is stemmed from a shortage of listings and record low mortgage rates.

Zillow New Construction Consumer Housing Trends Report 2020 shows that almost half of those who purchased a newly built home in the past two years only looked at new construction. For the 40% who would only look at new construction, the other 60% did consider purchasing an existing home.

Last year not only brought confusion with a global pandemic but also hindered materials, shipping and timelines in new construction. The report revealed that 80% of those who purchased new construction found some part of the purchase process challenging.

Demographics played a big part in the data shown of those who struggled with purchasing new construction. Close to 45% of new construction buyers were under the age of 40 and out of those 70% purchased their first home.

Fair price also was one of the top challenges. Last year 30% said that a fair price was a challenge while this year 37% express issues with fair pricing. Prices are hard to gauge because of the shortage of inventory. There are not enough sales to compare pricing.

Thirty-six percent of home buyers were concerned with the sale of their current home with the completion of their new home. Thirty-five percent admitted they are overwhelmed and doubt some of the processing of building and purchasing a new home.

Using a Realtor can help overcome these challenges. A Realtor can help with communication between the builder and buyer. Fifty-one percent of those purchasing a new construction home asked their Realtor to handle communications with the builder. A Realtor can educate buyers regarding financing and pricing and help buyers with timelines and delays. A Realtor can make purchasing a new construction home a breeze.

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Single-Family Permits Ring In the New Year Strong

We might have had a rough 2020 with the COVID-19 pandemic and strict stay-at-home orders but the housing market showed no sign of slowing down. The National Association of Home Builders reported a great ending to 2020 for Single-Family Permits. According to the United States Census Building Permits Survey, a total of 977,863 single-family permits were issued year-to-date in the country in 2020. This is a 14.5% increase on a year-over-year basis from December 2019 which reported 854,158.

The chart shows the amounts for each region. The South had the strongest with a 16.9% increase, Midwest followed with a 13.1% increase,

the Northwest had an 11.6% increase and the West showed a 10.5% increase for 2020. Muli-family numbers were all on the decline in all four regions. The worst was the Northeast with a -11.1% decline, followed by the South with a -9.2% decline, the West declined -8.2% and the Midwest -1.2%.

Vermont had the highest rate of growth in single-family permits from 882 in 2019 to 1,285 in 2020. This was a 45.7% increase YTD. Forty-five states all showed an increase while the District of Columbia and five states showed a decline. The top 10 states accounted for 61.5% of the total single-family permits issued in 2020.

At the local level, below are top 10 metro areas that issued the highest number of single-family permits.

Metropolitan Statistical Area Single-family Permits: Dec (Units #YTD, NSA)
Houston-The Woodlands-Sugar Land, TX 48,208
Dallas-Fort Worth-Arlington, TX 43,884
Phoenix-Mesa-Scottsdale, AZ 31,724
Atlanta-Sandy Springs-Roswell, GA 28,057
Austin-Round Rock, TX 21,653
Charlotte-Concord-Gastonia, NC-SC 17,807
Tampa-St. Petersburg-Clearwater, FL 16,028
Orlando-Kissimmee-Sanford, FL 15,523
Nashville-Davidson-Murfreesboro-Franklin, TN 14,125
Washington-Arlington-Alexandria, DC-VA-MD-WV 13,594

For multifamily permits, below are the top 10 local areas that issued the highest number of permits:

Metropolitan Statistical Area Multifamily Permits: Dec (Units #YTD, NSA)
New York-Newark-Jersey City, NY-NJ-PA 42,739
Houston-The Woodlands-Sugar Land, TX 20,207
Austin-Round Rock, TX 19,222
Los Angeles-Long Beach-Anaheim, CA 17,494
Dallas-Fort Worth-Arlington, TX 16,178
Phoenix-Mesa-Scottsdale, AZ 14,894
Seattle-Tacoma-Bellevue, WA 14,752
Miami-Fort Lauderdale-West Palm Beach, FL 14,034
Minneapolis-St. Paul-Bloomington, MN-WI 11,515
Nashville-Davidson–Murfreesboro–Franklin, TN 11,404

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Houses Are Still Affordable in 2021

Even with the home prices on the rise, houses are still very affordable. The NAHB/Wells Fargo Housing Opportunity Index (HOI) explains that the historically low mortgage rates allow buyers to purchase at a higher price.

Homebuyers who purchased between October 2020 and the end of December 2020 with a U.S. median income of $72,900 purchased 58.3% of the new and existing homes that were sold during this time. This has been the lowest since seen since the fourth quarter in 2018.

In the fourth quarter of 2020, the average mortgage rates were reported at 2.85%. This helped offset the national median home price which HOI reported rose to $320,000 in 2020’s fourth quarter. The mortgage rates dropped by 20 basis points in last year’s fourth quarter.

Telecommuting has become a big part of American’s work habits since the onset of the pandemic. The smaller markets are beginning to see an uptick in home sales. Cumberland-Md.-W.Va was reported to be the most affordable smaller market. Those earning a median income of $57,500 were able to purchase 96.4% of the homes that were sold in the last quarter of 2020.

The country’s most affordable major housing market was Lansing-East Lansing, Mich. at number one with 89.9% of homes sold to those earning a median income of $75,000. The top five of the affordable major housing markets included Harrisburg-Carlisle, Pa.; Pittsburgh, Pa.; Scranton-Wilkes-Barre-Hazleton, Pa.; and St. Louis, Mo.

“While historically low mortgage rates are helping on the affordability front, there was a significant jump in year-over-year home pricing from 2020 to 2019, as inventory remained lean due to supply chain issues and the COVID-19 pandemic,” said NAHB Chairman Chuck Fowke. “Moreover, lumber prices remain extremely high and builders anticipate that regulatory costs are likely to rise, which will put even more upward pressure on home prices.”

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Five Things a First-Time Homebuyer Can Do To Boost Their Chances in a Hot Housing Market

Buying a home is an exciting yet stressful life event. The current housing market is definitely a seller’s market with tons of buyers and limited inventory.

“Buyers walk in a home and say, ‘This is it!’ Then, they see all the business cards [from other agents] on the table and start panicking,” says Georgia Stevens, president of the Seattle King County Realtors and managing broker of the Compass Washington agency.

If you are a first-time home buyer have no fear about the competition. Here are five tips to follow when shopping for your first house.

Start with an authentic budget

You will want to know how much home you can afford before you start house shopping. Get on solid financial ground from the beginning. Decide what your price range will be by looking at how much you can borrow and what your monthly budget will be.

A mortgage lender will be one of your first contacts during the home buying process. A mortgage lender can give you a preapproval letter. Getting preapproved on a mortgage will allow you and your realtor to get a gauge on what exactly you can afford. In this day in age with the current housing market, you have to have a preapproval letter from a lender to show real estate agents and sellers that you are a serious buyer.

“I always caution borrowers not to stretch for a home, and to establish a realistic budget that will afford a financial cushion for the future,” Scott Lindner, national sales director for mortgage lending at TD Bank, said in an email. “This is even more important in the current uncertain environment.”

Learn what to expect before you shop

An experienced real estate agent can help you with the process step by step along with verbiage you might not be familiar with. It is best to be familiar with the process before you start.

“Right now, the emotion is lowest and logic is highest,” Alicia Holdaway, president of the Salt Lake Board of Realtors in Utah and an agent with Summit Sotheby’s International Realty. says. “As soon as we look at homes, those are going to swap.”

Emotions can take over and logic can go out the door. A Realtor will be your logic no matter how much you love a home. Holdaway says she will not take a buyer to see a home without first discussing what a real estate contract says and what terms can be put in place along with negotiations. A Realtor can stay grounded through this roller coaster of a ride.

Be firm on your needs, flexible on the rest

Make a list of the features you need in a home versus those amenities that would be nice to have. Spend a good bit of time thinking about the reasons you want to purchase a home to help distinguish between needs and wants.

Once you have your list you want to stick to those must-have items. You might love a home but it has only one full bathroom. You do not want to settle for something that does not tick off your must-have items.

There is a difference in compromising on cosmetic characteristics and amenities that you do not need in a home. A kitchen might have your must-haves but you hate the paint color. This is something that should not detour you from purchasing a home. Paint color can be easy and fairly budget-friendly to change.

“A house may not be HGTV-ready, but it can be something that can be improved over time,” says Stephen Medeiros, president-elect of the Massachusetts Association of Realtors and an associate broker at Keller Williams Realty in Dartmouth.

Don’t let negative emotions get the upper hand

Searching for a home, especially in a hot market, can be frustrating. You find a home you like and before you can even discuss it or think about an offer, it is already under contract.

According to Josh Harris, a certified financial planner and lecturer in finance at Clemson University, you do not want anxiety to make you rush into a bad decision. Before you get too worked up, take a break and think about why you are so anxious. He says to get a reality check from your real estate agent.

Holdaway says a good way to prevent this frustration is to not look at too many homes. First-time homebuyers are making this mistake a lot she confides. Doing this will lead to exhaustion and wears you down making you just want to make a decision to get the process over with. “They’re sick of looking, and they say, ‘I’ll make it work. I just need a house,'” Holdaway says.

Stick to your price range and priorities

Buyers want to please a seller so they can seal the deal but this is not always the wisest way to go about the process. In a hot market, buyers are under pressure to make these concessions. Before you make any concessions make sure you completely understand the risks.

Many homes in the current market are in bidding wars. Potential homebuyers must compete with their offer to win the war. A good example is to offer above the listing price. Before doing this, make sure you can afford the higher price and still be comfortable financially.

“You don’t want to live for your home,” Medeiros says.

“There’s always another great house,” Stevens says. “This isn’t the only one.”

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Tips To Shorten Days on Market for Sellers

Days on Market (DOM) is an important term when it comes to selling a home. DOM is defined as the number of days a home has been listed for sale basically the time from the date a home is listed for sale to the date it closed.

The lower DOM the better the housing market in that certain area. The longer a home stays up for sale, the more detrimental it can be for the listing. Higher days on market can raise a red flag to buyers who will question why it hasn’t sold yet.  Here are some tips to follow to help ensure a fast sale of your home.

Understand your local housing market

 

Today’s market in almost every location across the country is a seller’s market. It comes as no surprise that there are more buyers than sellers with such low inventory in today’s housing market. When it is a seller’s market, homes stay on the market for a shorter period than if it is a buyer’s market. This can vary from the location in the country and even by neighborhood. Get to know your local housing market to get a better understanding of buyer demand for your house.

Check your price

 

Listing for the right price can be very important to your listing. If you price your home out of the local market you can potentially cause a high DOM and make it harder to sell your home. The goal is to list your home for a price that reflects an accurate and realistic value of your home. A smart move is to list your home with a licensed agent who knows the local market.

Prep your home

Staging your home is a must. You want your home to look move-in ready for buyers. A staged home will appeal more to a buyer than a home that is not staged. It is very important this day in age because many buyers are viewing your home online. Small things you can do such as a fresh coat of paint or decluttering.

Remember listing your home with a Realtor can be a smart move. A local Realtor knows the current and local market so they can help you along the way.

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