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!

The Cost of Buying a Home

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Buying a home is one of life’s big moments and is a huge financial expense. If you are in the market for a home, then you will want to factor in all the costs associated. Here are the true costs of owning a home.

A home inspection is a cost that you will occur and if there are any issues with the home, you will either negotiate with the seller or have to come up with the money to fix the problems. A detailed, in-depth home inspection is a good idea to get on the home you are going to purchase.

When you purchase a home, you will need to bring closing costs to the table. Closing costs include title fees, lawyer fees, contract fees, and more. Future homeowners need to realize the listing price is not the only expense but closing costs will be added on.

Potential homeowners will need to consider monthly utility expenses. Operating home expenses can be a surprise to first-time homebuyers. Some of these expenses, just to name a few, include heat or cooling, appliances, lights, gas, water, trash and recycling.

Along with a mortgage monthly payment, you will need to pay homeowner’s insurance. A homeowner’s insurance agent can explain what is included in these monthly costs. The homeowner’s insurance premiums are held in the escrow account and paid each year. They are collected monthly on top of the mortgage monthly payment.

Moving costs are many times looked over. These costs need to be considered whether your move is local or far. These costs can include time off work, packing, loading and unloading, and in some cases storage facilities and packing supplies.

When you live in a neighborhood with a homeowners association there will be HOA fees that are due each year. These will be paid either monthly or annually. You will need to factor this cost into your budget.

If you are in the market for a new home, using a Realtor is a smart choice. Remember to leave the house shopping, buying, and selling to the professionals.

Click Here For the Source of the Information.

Beautiful subway tile surrounds the shower tub combo and compliments the vanity counter.

St. Tammany Parish Council Delays Moratorium on Residential Rezoning

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St. Tammany Parish Council will have a proposed moratorium that will ban rezoning that will increase subdivision density. The proposal will not appear on the agenda until late spring. Parish President Mark Cooper believes the moratorium will help with accurate planning and assessing for growth in St. Tammany.

“The reality in St. Tammany Parish is that development is outpacing infrastructure improvements and has been for years,” said Cooper.

Originally the moratorium was to be put on the agenda for the March 3rd vote but was delayed. Jerry Binder explained that the agenda for March 3rd’s meeting already had nine zoning appeals and thirty proposed ordinances. Five of the agenda items were to overturn Zoning Commission denials of rezonings for Timber Branch II, a controversial development.

The moratorium would not affect any commercial-zoned properties and would not apply to any development of any property under its current zoning. The purpose is for the moratorium to halt any rezoning or resubdivision of residential properties that would allow density greater than one house per acre.

Many residents are concerned and want the moratorium to pass. They are frustrated with the overdevelopment in their community that is negatively affecting the roads, drainage, water, and sewage. In fact, a group called the Concerned Citizens of St. Tammany has suggested to the council to not allow any high-density appeals to be approved until the moratorium is voted on.

“The time has come when we should stop codling developers seeking discretionary rezoning,” says Rick Franzo, a member of the Concerned Citizens of St. Tammany.

Click Here For the Source of the Information.

The 2022 Housing Market and How Interest Rates Will Change It

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A four bedroom three bath home that has a side entry garage.For the past few years, the housing market has seen historically low-interest rates but this might change. Sources report that we will be faced with rising interest rates throughout 2022. Here are some tips that professionals in the industry look at when determining the change housing market.

This year the market is starting to slow down on refinancing and pick back up with purchasing housing. The 30-year loan average interest rate jumped from 3.5% to 3.64% in just two weeks int the beginning of the year. Home prices also increased close to 8% due to the fear rates will start to rise.

Fortunately, we no longer have stay-at-home orders and the unemployment rates are down 2.8% from this time last year. More homes are being built so the low inventory problem is resolving. Data shows that there is a 34% increase in new homes being built across the country. Job security and more inventory should encourage hopeful homebuyers.

The shift in remove work has also changed what homebuyers deem important in a home. As of September 2021, 45% of full-time employees worked remotely. More people are looking for a single-family home with more bedrooms and a finished basement.

The 2022 market is looking good. Just because interest rates are rising, doesn’t mean now is not a good time to purchase a home. There are many factors that come into play that help balance the housing market event with high home prices and rising interest rates.

Click Here For the Source of the Information.

St. Tammany Will Be Home to Globalstar

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Globalstar’s satellite communications technology headquarters is located in Covington. The company has listed the building for sale for close to $20 million. St. Tammany will not lose the headquarters as it will stay in the St. Tammany parish building.

“We have a 10-year lease, which we fully intend to stay for,” Globalstar CEO Dave Kagan said.

Globalstar moved from Silicon Valley to Covington back in 2010. Thermo Development Corp, Globalstar’s majority shareholder, says they are just in the third year of the 10-year lease and are interested in subleasing back from whoever purchases the building. During the pandemic, the company began to shift to a hybrid work model. The 66,180-square-foot-building located at 1351 Holiday Square Boulevard in Versailles Business Park is conveniently located close to the Interstate 12 and U.S. 190 interchange.

Only around 60 employees actually work in the office. The majority of the 200-plus employees work remotely. Most of the company’s employees live in the St. Tammany area so the Northshore will stay Globalstar’s home. “We have incredible growth in the business,” he said. “We are not going anywhere. We’re not moving anywhere.”

The building has a 250-space parking lot with electric vehicle charging stations, floor-to-ceiling dry erase conference room walls, and noise reduction features throughout. There is a workout facility on the second floor that boasts showers, a telemedicine room, a full kitchen, and breakrooms.

Click Here For the Source of the Information.

Private Residential Construction Spending Up

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The NAHB analysis of Census Construction Spending reported a 1.1 increase in total private residential construction spending in December 2021. November 2021 also reported an increase of 0.7%, in fact, total private residential construction spending was 15% higher than reported at the same time last year. Spending was reported at a seasonally adjusted annual rate of $810.3 billion.

The growth rates are due to the solid growth of spending on single-family and multifamily construction. Monthly gains in single-family construction rose 2.1% to a $435 billion annual pace in December 2021. As for multifamily construction, there was a 0.4% increase in December 2021. Spending was a little down because of the supply chain issues and labor shortages.

Private nonresidential construction spending stayed steady during December 2021. The data shows that the spending was 9.1% higher than a year ago. As far as the separate spending in each category was $0.49 billion in office, $0.4 billion in amusement and recreation and $0.37 billion in lodging.

Click Here For the Source of the Information.

Custom lighting is found in the living area of the home. The living area also has a nice fireplace.

Five Financial Obligations Every Homeowner Should Know

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Buying a home can be both stressful and exciting. Homeownership is an important life event, especially for first-time homebuyers. Understanding these five financial obligations can help your journey be less stressful.

1. Don’t be fooled by your mortgage pre-approval amount

Getting a pre-approval is the first step on the journey of owning a home. A pre-approval letter from a mortgage lender does not mean you have it in the bank so to speak. A mortgage pre-approval is only just assurance from a lender that the buyer is in good financial standing to take on a mortgage of a certain size.  Just because you are pre-approved for a certain amount, doesn’t mean you can afford it. Your pre-approval does not equal your actual budget. For example, even though you are approved for $300,000 doesn’t mean you can pay the payments for a $300,000 mortgage.

2. Closing costs can add up—and be complicated

Closing costs are out-of-pocket expenses which include title insurance, notary fees, and the cost of the deed. Buyers can ask for sellers to pay closing costs but it is not to their advantage in the current seller’s market.

“Some loan programs only allow a certain percentage of the sale price to be given to the buyer as a credit,” says Joe DiRosa, a real estate agent with RealtyTopia in Pennsylvania.

That means that if you’re offering $200,000 for a house and your lender only allows you to accept 2% in closing costs, you shouldn’t ask for $5,000—that would be $1,000 down the drain since you can only accept up to $4,000 in credit. Before you make an offer, ask your lender if your loan institutes a limit on closing cost credits.

3. PMI isn’t actually the devil

PMI stands for private mortgage insurance and has been characterized as both a blessing and a curse. PMI is a safety net for mortgage lenders when homebuyers do not put 20% down. It covers the lenders if the homebuyers default on their mortgage. The PMI is an additional payment on your mortgage payment. Unlike your principal, PMI does not add to your equity. Once a homeowner does have 20% equity, you can ask to have the PMI removed.

4. You might have to make escrow payments

Escrow simply refers to the separate account where that money is held; basically, our lender sets aside the money for taxes and insurance, which acts as a safety net to ensure that we sock away enough money for those expenses.  So when you have a loan with PMI, you have to pay money into an escrow for property taxes and home insurance.

5. You need to budget for surprises (and your own mistakes)

There will definitely be unexpected expenses in homeownership. Even if you depend on your clean report from the home inspector, something could come up the next day. A home inspector gives the dishwasher an A+ but the next week after you move in and go to wash the dishes it won’t start.

Homeownership is a great investment, but you have to plan ahead. A local Realtor can help you navigate and find your perfect dream home.

Click Here For the Source of the Information.