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 Buyers Increase Demand for Energy Efficiency Features

From the way that the house is placed on its lot to the light bulbs used in the custom lighting package, home buyers have become very sensitive to the use of energy efficient home building techniques, and many local St. Tammany Parish builders have stepped up to the challenge.  The footprint of a house on a lot determines how the sunlight will2-133-st-calais-place-exterior-front-2 affect all rooms of the home which not only helps with heating and cooling but also maximizes the offering of natural lighting which can reduce the consumption of electricity used to light your home.  Therefore, builders now carefully review floorplans for lot placement when they are trying to offer the most energy efficient structure possible.

Home buyers also express interest in many different green building techniques which included spray foam insulation to “envelope” the house, sealing out air and moisture but still allowing the house to “breath” to expel any humidity which could get trapped in the walls.  They also preferred now triple pane, low E windows – some even with a glaze – to block out light in rooms that would tend to heat up.  In 156-st-calais-place-master-bath-1townhomes and condos, buyers considered planting rooftop gardens to encourage the absorption of moisture for plants and reducing the amount of heat that a traditional shingle roof would absorb in the hot southern months.

Regarding electrical fixtures inside the homes, new home buyers, especially Millenials who are now entering the home buying market because of improving employment and economic conditions, prefer all of their appliances to be Energy Star rated appliances.  It is now pretty much standard for builders to install electronic, programmable thermostats to control the heating and cooling of homes to match the homeowner’s life schedule.

New home buyers who are able to completely customize their home buying experience may also be dedicated to a complete green building experience from the ground up.  Structural foundational parts of a totally green home could include ground source heat pumps, solar energy for both electricity as well as hot water heaters, displacement ventilation, and water conservation through the use of underground irrigation tanks or insulated rain barrels for outdoor watering needs.

In many markets new home buyers increase demand for energy efficiency features, and new home builders are stepping up to the challenge of offering buyers the benefit of green building techniques.  They are providing a way to reduce utility bills and offer a more quality-built new home, sealed from the elements that could last much longer than new homes built even 20 years ago.

Ron Lee Homes is currently building new homes for sale at Bedico Creek Preserve, and Ron Lee has held the National Association of Home Builders’ designation of Certified Green Professional since 2009.  For More Information on homes for sale, Contact Us at 985-845-4200 or E-mail Info@LiveBedico.com.

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Economic Recovery and Home Building Employment Go Hand-in-Hand

As if anyone in the home building industry needed any further proof, February’s employment numbers for the home building / remodeling industries comes in at 2.436 million with 688,000 being builders and the other 1.748 million specialty trade contractors.  Counting contractors and subs is very important because most of the work done in residential-construction-industry-workersresidential and commercial construction is done by contractors and sub-contractors.

It is very evident that economic recovery and home building employment go hand-in-hand because in the month of February alone, the real estate market added 16,700 jobs bringing the number of people employed by the construction industry to 168,000 jobs in the last 12 months.  The average number of jobs added per  month over the last 6 months has been approximately 15,000 jobs per month, and the total amount of construction jobs for both residential builders and remodelers has been 449,700 positions since the low point of the Great Recession.

Overall, according to a new study by the National Association of Home Builders (NAHB), 3.5 million people worked in residential construction during the year of 2013.  These numbers include self-employed workers who are typically subs.  The numbers do not include the ripple effect that is created by the construction industry for those businesses which are associated with the residential home building process.  These side industries can include decorators, economic-recovery-depends-on-constructionlandscapers, alarm installation companies, electronics / surround / home theater companies, building materials supplies, custom cabinetry / built-ins / closet companies, etc.  Just considering the “bare bones” impact of the home building industry on the employment numbers in the United States in 2013, residential construction employment made up 2.4% of the employed civilian labor force.  California came in first with the most employees of residential construction, and Florida came in second.

The impact of both commercial and residential construction employment is something that the NAHB watches closely.  They monitor turnover rates, employment rates, layoff rates, and job quits, and sector hiring to try to advise Congress on the impacts of regulations that are imposed by legislation both nationally and at a state level.  Employment numbers will need to rise from 3.5 million to 5 million in residential construction and from 8.9 million to 11 million in overall construction in order to be considered “back to normal” in today’s housing market.

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Energy Efficiency Saves in Small Measures

In order to have a proper perspective of how much energy saving measures will have in your new or existing home, you have to know the paramenters of energy saving capability as well as have the right expectation for the process going into it.  If you live in a much older home, built in an older neighborhood during a time when real estate was not as “coded” as it is today, you can expect to see a more dramatic increase in savings after spending more money up front to make changes.  This is because building codes are truly on the cutting edge of emerging green techniques which are constantly promoting more structurally sealed homes with low-energy, efficient technologies installed in them.  The savings really do add up, though, through a combination of several energy saving techniques.  Home buyers and homeowners can be assured that energy efficiency saves in small measures that over a year’s time give a return on investment.

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Start Simple

Because the process of building is an imperfect process (no matter how detail-oriented your builder is) performed by mutliple contractors who “touch the job” once and then leave, you would be amazed as to how much small spaces and leaks allow air and moisture into your home.  To begin the energy efficiency process, you will want to seal your home as much as possible by caulking and sealing the spaces around your plumbing pipes, electrical systems, light fixtures, and windows as well as the unused portions of your home which can include your attic or crawl space below.  By closing up these areas to air and moisture, you can reduce the amount of air it takes to heat and cool your home.

Work on Major Systems When Possible

HVAC systems are notorious for being big energy suckers, so if you have the money to invest in a completely new system which would include an overhead air conditioning and furnace system (the most energy efficient way to heat and cool your home), you should do so.  If you don’t have the finances for such an expense, having a contractor come out for a service call to inspect your ductwork for blockages or leaks will make sure that your ducts area as efficient as possible.  Clean ductwork allows better airflow which heats and cools a space more quickly.

Small Changes Make a Big Difference

While you are inspecting and focusing in on your HVAC system, you will also want to immediately replace your thermostat if you do not already have an electronic thermostat.  Electronic thermostats can run from $28 – $120 depending on how quality or complicated you would like them to be.  This is a small investment which makes a HUGE difference in your heating and cooling bill.  Buy purchasing a programmable thermostat, you are able to control your home’s temperature when you are home, away at work, or sleeping to keep your heater or air conditioner from “running all day.”

Change Your Ambiance and Save Energy

Another suggestion as a way to reduce the amount of energy used in your home is to replace all of your light bulbs with bulbs that are either CFLs or LED lights.  However, if you are affected by lighting and the ambiance it provides, you could end up spending a lot on the front end to get the desired lighting affect you would like with LED lighting – the closest lighting alternative to old fashioned light bulbs.  If you aren’t picky about lighting, the new CFL light bulbs are energy efficient and last longer than old fashioned bulbs and are becoming more affordable as well.

Adjust Your Temps During Warmer Months

The last energy savings idea to use is to reduce the water temperature on your hot water heater.  “Out of the box,” hot water heaters are programmed to approximately 140 degrees.  If you reduce this to 120 degrees, you can save on heating expenses.  Also, by insulating the pipes on your hot water heater and the pipes going into either the wall or the floor, you can maintain the heated water as well.  While this might be a good idea during warmer spring and summer months, you may want to increase the temperature again during colder weather months because the air temperature feels cooler when you shower or bathe.

By using these energy efficient techniques altogether, you can drastically reduce the amount of money you spend each month on your energy bills.  If you are only able to do a couple or few of the ideas at present, your savings will be less.  However, any money saved is money that can be used for other life necessities in a tough economy.

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Real Estate Related Tax Deductions

While the reasons for buying your own home and officially becoming a homeonwer include ideals such as investment, security, family, and longevity, there are also several financial reasons why buying a new home for sale can also benefit you monetarily.  As tax season approaches, information about real estate related tax deductions should help you when preparing your tax returns and filing your taxes.  Below are just a few of the benefits of homeownership related tax breaks.

1. Deduction of Your Mortgage Interest
This is probably the most well-known benefit of owning your own home.  Instead of paying an almost identical payment in rent for a home of approximately the same size and value and literally “throwing away” your money, with mortgage interest deduction, you can deduct your interest from your gross income to reduce the amount of overall taxes you pay.  Because mortgage interest makes up the bulk of your initial payments to a lender, interest amounts can be substantial for a 12-month period depending on your loan amount.

2. Deduction of Mortgage Insurance Premiums
This is a much lesser known deduction that homeowners sometimes miss when they are filing their taxes.  Many homeowners don’t even know that they are allowed to deduct their private mortgage insurance (PMI) from their taxes.  PMI is charged by a lender when the loan amount is greater than 80% of the home’s appraised value, or loan to value ratio.  Sometimes this is calcualted immediately in an FHA loan situation where the buyer is not putting the tradition 20% down on the purchase of their home.  Other times, it is calculated during a refinance where a homeowner has taken out a home equity line of credit to make improvements or pay off debt.  When the loan’s value reaches 80% of the appraised value of the home, PMI can be removed at the discretion of the lender – it automatically comes off when the value is 78%.  Regardless, this amount of approximately $80 – $150 / month can be deducted from your taxes if you are a homeowner.

3. Deduction of Prepaid Interest
While many people have noticed reductions in their credit scores because of employment issues and debt issues during the Recession, it is still possible as a homeowner to “buy a better interest rate” by using points.  When the appraised value of the home is high, and the loan amount is low, it is possible to spend some money initially during the mortgage process to pay points to achieve a better interest rate.  Points can be paid for ever 1/4% of interest to buy down your rate.  If you have the “breathing room” of excellent equity in your new home purchase, you may consider lowering your monthly payments by purchasing a better rate.  If you are buying a home in the calendar year of which you are doing your taxes, you are able to deduct the entire amount of prepaid interest that is added up in your closing costs.  If you are refinancing, you are able to deduct your prepaid interest over the length of your refinanced loan – not all at once.

4.  Deduction of Property Taxes
Part of the joy of owning your own home is that you are required by St. Tammany Parish to pay property taxes on your home each year.  If the home you are buying is your primary residence, you are able to get a Homestead Exemption which offsets the total value of your home and only charges property tax on the rest of the home’s value.  Either way, as a homeowner of a primary residence or a second home not used as a rental, you are able to deduct the entire amount of your property taxes from your overall tax bill.

5.  Deductions for Energy Improvements
The government still has many energy efficiency tax deductions available for those homeowners who upgrade or renovate their home to make them more energy efficient.  They are called tax credits and typically are applied for new systems that are added to your home, such as solar panels, double-paned windows, and upgraded HVAC / furnace systems.  You can research further to find all of the items that are tax deductible and have government funded tax credits for energy efficiency upgrades.

As you can see, in addition to investing for you or your family’s future by buying a new home in St. Tammany Parish, you can also enjoy the benefit of tax deductions which will increase your refund or reduce the amount of taxes owed.

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Overall Housing Confidence Boosted by Record New Home Sales

It’s no secret that the housing market has been on a gradual but steady, never faltering upswing all throughout 2014.  When home prices started to rebound in 2013, and the market seemed to be heading up with no limits, alarms were sent out across the real estate industry to beware of the unsustainable housing bubble.  However, those fears were not realized, and housing prices began leveling off as supply and demand started to be more balanced.  To culminate such an incredible growth year for the new home industry, December, 2014’s new home sales numbers were something to celebrate for new home builders and new home buyers alike.  The pace of sales of newly built, single-family homes increased 11.6% in December to a seasonally adjusted annual rate of 481,000 homes, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, which is the highest it has been since June, 2008.

This 6-year increase has been a long time coming, but most builders have had a rise in confidence throughout the entire year according to the National Association of Home Builders’ HMI score which is taken each month in 305-seminole-court-exterior-ucpartnership with Wells Fargo.  The HMI is short for the Housing Market Index, and it measures builder confidence throughout the United States by taking a survey each month to ask builders questions about the following three topics: current home sales conditions, future new home sales projections, and consumer participation or confidence.  These three scores are averaged out over 4 regions of the U.S. and any number above 50 indicates strong builder confidence.  As of December, 2014, builder confidence had been above 50 for 5 consecutive months straight, and in January, the average score nationwide was 57.

Builders are not the only people who are interested, excited, and confident about real estate and / or the economy in general.  Consumer confidence has been on the rise with the reduction of unemployment numbers, growing employment opportunities, long-term unemployed citizens coming back into the job market, overall economic growth each quarter according to GDP numbers, and the rise in retail sales.  Because of steady full-time employment instead of just part time employment, households are now not only paying their bills, but they are also able to save money once again. Another factor that helps with household wealth is the reduction of gas prices for now which have eased costs not only at the pump but also at grocery stores and other industries that have to increase prices due to the cost of gas.

With all of this good news and confidence “floating around” for both builders and consumers, the National Association of Home Builders is projecting a 26% increase in new home construction starts in the year 2015 which would be 804,000 new homes built this year.  For home buyers, there is an incredible investment opportunity to buy a new home for two reasons.  First interest rates are still at historic lows, and just last week, they once again dipped down to 3.75% for a 30-year mortgage and 3.25% for a 15-year mortgage.  As long as interest rates are so low, the cost to buy a home is minimal when it comes to interest.  The second reason is that the credit restrictions and application hoops and hurdles have eased slightly for all home buyers, making it easier to obtain a loan.  Also, the FHA, Fannie Mae and Freddie Mac have just reduced loan down payments to 3% – 3.5%.  Two days ago the FHA lowered the cost of their loans from 1.35% of the loan value to just .85% of the loan value.  If you are looking for a new home investment in St. Tammany Parish, you will want to contact Bedico Creek Preserve in Madisonville, Louisiana t 985-845-4200 or E-mail Info@LiveBedico.com.  We have 9 different Neighborhoods from which to choose with Homes for Sale and Lots for Sale.  You can also build a custom home on one of our lots.  Contact Us Today to get started on building your dream home!

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FHA Reducing Loan Costs for Credit Challenged Buyers

There is no question that the Recession affected both the mortgage industry as well as the home buying process when it comes to obtaining a loan to buy a new home.  Mortgage companies, lenders, and banks had their feet “held to the fire” and were required to jump through multiple hoops in all categories and steps to the loan procurement process. HUD-logo Even now, on average, it takes 6 weeks to 3 months just to refinance your existing home even if you have (and have had) a steady job, money in the bank, equity in your home, and excellent credit.  The strict requirements that lenders are applying to loan applicants are also being applied to their own corporations with stiff penalties and sanctions in store for any bank or mortgage company that even comes close to “bending the rules.”

With that being said, Fannie Mae and Freddie Mac who were able to restructure and survive the housing market falter have now found a way, along with the FHA (Federal Housing Administration) to finally bring some relief to first-time home buyers by offering loans with either a 3.5% or 3% down payment of the loan.  Now, the FHA has reduced the cost of its loan for first-time home buyers, dropping from 1.35% of the loan value to just .85% of the loan value.  The FHA provides an affordable loan to all home buyers and does not, for the most part, discriminate against home buyers who are “credit challenged,” those who may have a less than stellar credit score.  Therefore, as long as you are above the threshold of the credit score required by the FHA, your loan cost will be the same whether you are 5 points above the threshold or Freddie-Mac200 points above the threshold.

FHA loans are the most beneficial for custom home buyers who cannot afford a 10% down payment on their loan, who may have had struggles with credit in the past, and first-time home buyers.  Fannie Mae and Freddie Mac were established just after the Great Depression as lenders backed by government bonds in order to allow low-income Americans to be able to buy a house.  They have since privatized and restructured, but they are still focused on helping low-income or struggling families afford and pay for their new house.  With the latest reductions in down payments and loan costs, it could now be affordable and plausible for younger professionals to graduate from college, start their careers, and form their own households by buying a new home for the first time.

If you are in the market for a new home to buy in St. Tammany Parish on the Northshore of Lake Pontchartrain in New Orleans, Louisiana, come Visit Bedico Creek Preserve in Madisonville, Louisiana to view 9 new Neighborhoods of Homes for Sale within our masterplanned community just outside of Covington, LA.  We have 18 builders building new and custom homes in our subdivision.  Many builders can and will build any size or type of home that meet our architectural standards.  Call 985-845-4200 or E-mail Info@LiveBedico.com today to find out more about our new home community!

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