Find out about the latest news in Madisonville, Louisiana as well as St. Tammany Parish. We will keep you “tuned in” to all of the information about Southeast Louisiana as well as the real estate industry in general. Many new home buyers are concerned about the market, mortgage information, and builder trends. We plan on keeping you as up to date as possible on these and many more topics. There is a lot going on in the Greater New Orleans area, so you will have plenty to read!

5 Tips On How To Get Your Dream Home

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Buying a home is an exciting life-changing event. There are so many things to consider from the perfect location to the perfect house. Here are five factors to consider when searching for a home.

1. Take Cost of Living Into Consideration

Different areas in your state or the country may cost more or cost less to live in. These costs include housing, food, utilities, healthcare, and transportation. You need to take this into consideration because this change in funds can affect the purchase price of your new home. There are tons of ways to research the cost of living in different areas.

2. Find a Suitable Climate

Consider weather conditions that you and your family will be comfortable in. You may never get snow where you live, but getting snow all winter might not adapt well to your living situation. Someone from the northwest might not like the warmer humid longer summers in the southeast.

3. Determine What’s Within Walking Distance

Many enjoy a walkable neighborhood where you can walk to eat, live and play. There are tons of ways to research the walkability report of a community that you are interested in. Before you choose a community, walk around it yourself to get a feel for the neighborhood.

4. Know If You Want Turnkey or a Fixer-Upper

Some homebuyers are great at DIY and others are not. Many want to put their stamp on the home in more ways than just designing a nice new home. Many homeowners love an old homes charm and character while others love the newness of new construction.

5. Figure Out the Financing

This is a super important step to take when it comes to buying a home. Both a lender and a realtor can help you with what type of mortgage is best for you. Remember that you will need a big chunk of change for closing costs and a down payment.

If you are thinking of purchasing a home, choose a realtor. A realtor can help you purchase a home and find the right home that would be perfect for you.

Click Here For the Source of the Information.

November Sees the Largest Drop In Mortgage Rates Since 1981

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According to reports, the 30-year fixed-rate mortgage was down 7.8% from the beginning of November 2022. Freddie Mac says this is the largest drop since 1981.“While the decline in mortgage rates is welcome news, there is still a long road ahead for the housing market,” said Sam Khater, Freddie Mac’s chief economist. “Inflation remains elevated, the Federal Reserve is likely to keep interest rates high and consumers will continue to feel the impact.”

Inflation does appear to be easing up according to the Consumer Price Index and Producer Price Index which reported that prices rose slower than predicted in October 2022. Even though interest rates are not directly changed by inflation, it does play a part. Mortgage rates are based on the track of the yield on 10-year US Treasury bonds.

“The 10-year Treasury dropped from 4.15% last Wednesday to 3.68%, as capital markets seemed to cheer the slowdown in inflation as a sign that the Federal Reserve’s monetary tightening is having its intended effect,” said George Ratiu, Realtor.com’s manager of economic research.

“Signs of slowing inflation pushed mortgage rates below 7% for the first time since mid-October, but with rates still relatively high and affordability correspondingly reduced, the average loan amount is now at its lowest level in nearly two years,” said Bob Broeksmit, president and CEO of the MBA.

Click Here For the Source of the Information.

Homes Sales Dropped For The 9th Consecutive Month October 2022

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Among these sale price drops seen in the past nine months, rising mortgage rates and high prices are two of the catalysts of the current situation. Buyers are getting fed up with this and are backing out of the housing market.

The National Association of Realtors reported that sales that include single-family homes, townhomes, condominiums and co-ops are down 28.4% from October 2021. Every region in the country saw a decline. This is the longest decline seen in home sales since 1999.

Home sales have been the weakest we have seen since May 2020 during the height of the pandemic. Current homeowners are not wanting to sell because of the uncertainty in the market. This is keeping the inventory low which is not helpful.

October reported 1.22 million units for sale. This is down from the month before and a year before. Currently, it would take only 3.3 months to get through what is currently on the market. A balanced market has around 4 to 6 months of supply. “Inventory levels are still tight, which is why some homes for sale are still receiving multiple offers,” Lawrence Yun, NAR’s chief economist added.

Yun also reports that household incomes have not risen enough to keep up with home prices. “First-time buyers are really struggling with high prices, the high bar to get into the market and high mortgage rates,” Yun says.

“This is why more new home construction is needed, as well as more rehabilitation of disused buildings into residential units,” said Yun, noting that while construction of apartment buildings remains robust, single-family starts are below one year ago and well below historical averages.

“In the meantime, mortgage rates are falling from the peak levels of last month and the gate is opening for more homebuyers to qualify for a mortgage.”

Click Here For the Source of the Information.

The Market Is Seeing a Decline in Home Prices

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For two years we have seen a boom in the housing market when it comes to price appreciation. We have finally seen the peak, as the prices are now declining.The breakfast room has tons of space for a table that seates six.

Prices will keep declining in the near future but will not drop as far as they did during the recession. From the peak in 2006 all the way through to 2012 there was a 27% decrease in home prices.

“It was different in 2008, 2009 because that drop in prices was because of a push from sellers,” said Jeff Tucker, senior economist at Zillow. “Because of foreclosures and short sales there were a lot of extremely motivated sellers who were willing to take a loss on their homes.”

“I would be surprised to see prices anywhere drop below where they were in 2019,” said Tucker. “There was some overheating in the housing market in 2021 through this spring that pushed prices higher than what the fundamentals would support. Now they are coming down.”

With the soaring mortgage rates along with elevated home prices and slow increases in wages, home buying is not in most potential buyers’ future. According to Goldman Sachs we should see a decline of around 5% to 10% from the peak, Wells Fargo predicts a 5.5% decrease. This means the median home price will fall to $364,000.

“The primary driver behind the housing market correction thus far has been sharply higher mortgage rates,” the Wells Fargo researchers wrote. “If our forecast for Fed rate cuts is realized, mortgage rates are likely to fall slightly just as cooling inflation pressures boost real income growth. A modest improvement in sales activity should then follow, which will reignite home price appreciation heading into 2024.”

Click Here For the Source of the Information.

Madisonville Gets a Grant For Park Improvements

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Madisonville officials announced that the city will receive a $350,000 federal grant that will go towards improvements to the town park.  Another $350,000 will also go towards the park from the Land and Water Conservation Fund grant.  The park is located between Pine and Main Streets which is located in the heart of Madisonville. 
The money will go toward new playground equipment and a splash pad for children. “This is great news,” Councilman Brad Haddox said.  “And it’s a long time coming,” added Councilman Keith Dennis.
The grant was originally applied for in 2021 so it has been a long time coming.  Improvements should begin within the next three months and the entire project is projected to take around a year to a year and a half.
Madisonville Park and Playground is in the middle of downtown and is a great area filled with swings, slides, and green space.  It is under huge oak trees that give plenty of shade.  The green space has a net for soccer and there are two lighted tennis courts along with a pavilion. The pavilion is a perfect gathering spot for large groups and is just a great spot to cool off in the shade.

New Home Construction Is Beginning To Pick Back Up

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Good news for the housing market, the new home building is starting to pick back up but builders are still frustrated. This fall we have seen an uptick in new home building even with the slower demand from new home buyers. Builder sentiment is still down though due to things like the high cost of building materials.

According to the US Census Bureau, August home starts for new home construction rose 12.2% from the previous month. This is still 1% down from August 2021 just a year ago. The home starts are still trying to catch up this fall from the big drop that was seen this spring. The housing starts have been holding steady up until about a month ago when they began to increase.

The increase is a plus for the housing market due to the low inventory that has disrupted the market for the past two years. The rise in home prices and bidding wars are part of the direct outcome of this shortage. ” The latest month’s increase is implying that builders still see profit opportunities even as they concede on prices,” said Lawrence Yun, chief economist at the National Association of Realtors.

Multi-family projects have seen the biggest gain which jumped 30% from July, single-family homes only rose 3.4% from a month ago. Even with these increases, builders are still shy about being too optimistic of what the future holds. Building permits dropped 10% from the beginning of the summer and were down 14.4% from the same time last year. Surveys are still showing that builder confidence is still falling.

This fall is partly to be blamed on higher mortgage rates, supply chain problems and high home prices. “Buyer traffic is weak in many markets as more consumers remain on the sidelines due to high mortgage rates and home prices that are putting a new home purchase out of financial reach for many households,” said Jerry Konter, NAHB Chairman.

The National Association of Home Builders reports show that builder sentiment has gone down every month since 2022 and shows no signs of rising anytime soon. “Builders continue to grapple with elevated construction costs and an aggressive monetary policy from the Federal Reserve that helped push mortgage rates above 6% last week, the highest level since 2008,” according to Robert Dietz, NAHB Chief Economist.

“In this soft market, more than half of the builders in our survey reported using incentives to bolster sales, including mortgage rate buy downs, free amenities and price reductions,” said Dietz.

This is still not pushing home buyers back into the market. The study also shows that the cycle of homeowners moving up from a starter home is stalling due to the high prices and rising mortgage rates. First-time home buyers are also stalling and choosing to rent instead.

“Many potential ‘move-up’ buyers who would be likely candidates for high-priced new construction homes may also be weighing the benefits of remaining in their current home, where they likely have a mortgage rate less than half of today’s going rate – all factors that are contributing to a decline in housing mobility,’ said Kelly Mangold of RCLCO Real Estate Consulting.

The huge increase in multi-family buildings is due to the record high rents around the country. “Apartment demand has been strong, with rents rising at a historically high pace. Those consumers unable to qualify for a mortgage at higher interest rates are renewing their rental leases. Job creation is also boosting the rental demand,” stated Yun.

Click Here For the Source of the Information.