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!

Home Prices and Starts Are on the Rise

/in

Housing starts were up more than 22% in July from the previous report in June. According to the Commerce Department builders started 1.5 million new homes in the month of July. This is great news for potential buyers who will now have more inventory to choose from, however, home prices are also on the rise.

Raw materials used to build have had a huge spike in prices. Components that are made in China such as hammers, bathroom fixtures and nails have seen heavy tariffs. According to Mark Konter, a builder from Savannah, Georgia, he had to raise his home prices in July because of the cost of timber going through the roof. The higher cost of lumber will add $8,000 to $14,000 on the price of new homes to compensate for the difference.

“From July 1 to Aug. 1, we were up just shy of 45%, in that short, 30-day period alone,” Konter said.

Jerry Howard, head of the National Association of Home Builders blames the rise in timber cost to supply and demand. During the height of the pandemic supply of timber was down because the lumber mills had to close. The high demand for houses with the low inventory of timber caused the prices to skyrocket.

“I don’t think anyone anticipated housing to come back this strongly, placing this much pressure on the demand for all the components that go into a house,” Howard said.

This will not detour housing demand. Homebuyers are looking for larger homes where they can work from home and have space outside because of social distancing. Low-interest rates will help with the increase in home prices and as long as the interest rates stay low, homebuyers will keep purchasing.

Click Here For the Source of the Information.

Home Sales Up 8.7% Than This Time a Year Ago

/in

The National Association of Realtors reported sales of existing homes rose 24.7% from June to July this summer. July of this year sales were up 8.7% higher than they were this time last year. According to NAR that is the strongest monthly gain in the history of the survey.

When looking at sales, the NAR says the numbers they report include closed sales. The high numbers are stemmed from a lack of inventory, rising prices and record low mortgage rates.

“The new listings are running a little higher than one year ago but all those new listings are being grabbed by the buyers and taken off the market,” said Lawrence Yun, chief economist for the Realtors.

Home inventory was reported to have only 1.5 million homes for sale at the end of July. It was reported that the supply of existing homes for sale decreased to 21.1% annually. At the beginning of the year, there was a 4.2-month supply at the current sales pace but with this drop, the sales pace went down to just a 3.1-month supply. This is the lowest reported since the National Association of Realtors began the survey in 1982.

Since the supply is low and demand is up, the median price of a home was also up in July 8.5% annually. The lack of inventory increased the median price of homes sold to $304,100. This is also a record high price much like the prices seen during the bubble in 2006.

Record low-interest rates are also fueling the market. Potential homebuyers have a lot more purchasing power and can afford a bigger purchase price with such low rates. The average 30-year fixed mortgage is below 3% as reported in July.

Low rates coupled with high homebuilder sentiment has been positive for the industry. August saw a record high score on the National Association of Home Builder’s monthly index. Homebuilders are benefitting from strong buyer demand and inventory shortage.

“I think there is a big societal change concerning housing decisions today,” said Yun. “The upper-income bracket has been more stable in terms of jobs, and they are taking advantage of record-low mortgage rates.”

Click Here For the Source of the Information.

Housing Industry Sees All-Time High Record Traffic and Builder Confidence

/in

NAHB/Wells Fargo Housing Market Index (HMI) reported that builder confidence in the market for newly-built single-family homes was up six points to 78 this August. This is the highest it has been in the history of the HMI which matches the record that was originally set in December 1998.

The survey has been conducted by the National Association of Home Builders for 35 years. The NAHB/Wells Fargo Housing Market Index (HMI) is based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. The builders who participate in the survey rate present single-family sales and single-family sales for the next six months as good fair or poor. The HMI index can range between 0 and 100.

All three indexes rose in August. The sales conditions came in at 84, sales expectations in the next six months rose three points to 78 and the measuring charting traffic of prospective buyers was at the highest level ever recorded at 65. In the Northeast the averages of all three indexes rose 20 points to 65, in the Midwest to 63, in the South increased 12 points to 71 and the West saw 78.

“The demand for new single-family homes continues to be strong, as low-interest rates and a focus on the importance of housing has stoked buyer traffic to all-time highs as measured on the HMI,” said NAHB Chairman Chuck Fowke. “However, the V-shaped recovery for housing has produced a staggering increase for lumber prices, which have more than doubled since mid-April. Such cost increases could dampen momentum in the housing market this fall, despite historically low-interest rates.”

“Housing has clearly been a bright spot during the pandemic and the sharp rebound in builder confidence over the summer has led NAHB to upgrade its forecast for single-family starts, which are now projected to show only a slight decline for 2020,” said NAHB Chief Economist Robert Dietz. “Single-family construction is benefiting from low-interest rates and a noticeable suburban shift in housing demand to suburbs, exurbs and rural markets as renters and buyers seek out more affordable lower density markets.”

Click Here For the Source of the Information.

Mature trees are found on this cul de sac lot. The yard is beautiful and offers privacy for the homeowners.

What to Expect for in Closing Cost When Refinancing

/in

Refinancing is an option many homeowners seek to take advantage of. If they do, homeowners should first become familiar with all the closing costs associated with mortgage refinancing. Consider if this option is right for you by comparing closing costs and interest rates before beginning the process.

Mortgage refinancing does come with closing costs just like obtaining a new mortgage. Closing might include origination fees, discount points and third-party charges. Typical closing costs can cost as much as 2% – 5% of your outstanding principal in the mortgage refinance fees. Closing costs can vary from lender to lender and state to state. Here are some closing costs that can add up to a significant chunk of change.

Early repayment fees can be one. These prepayment penalties are tacked on by your mortgage lender for paying off your current mortgage early. Usually, these fees are only applicable within the first 3 – 5 years of the life of a mortgage. Fortunately, FHA and VA loans (which are backed by a federal agency) cannot penalize for paying off a loan early. These fees are typically uncommon and in some states illegal but they are fees to consider when refinancing.

Another piece that can affect closing costs is discount points. Discount points (mortgage points) are fees you pay a lender to reduce the interest rate on a mortgage. Paying for discount points is often called “buying down the rate” and is totally optional for the borrower. In the long run discount points are worth it. If you are planning on staying in your home for a long time these fees work to your advantage. This might not necessarily be the case if you want out of your current mortgage early. When you buy points, it alters the break-even period for your refinance, so be sure to do the math.

It takes a lot of paperwork and a lot of a lender’s time to assist in refinancing. A lender will add on origination fees which cover the cost of processing a loan and running your credit check. Double-check these costs which might also be called an administration fee, application fee, underwriting fee or document preparation fee. If the fee seems too high, you can always try and negotiate the fee with your lender.

Other fees to watch out for when refinancing are appraisal and inspection fees. A home appraisal fee can cost between $300 – $500 but is well worth it as it assures your home is properly valued. Inspection fees might be required as well such as a termite inspection, pest inspection, or property inspection and can run several hundred dollars.

Mortage and title insurance fees can also apply to mortgage refinancing. FHA and VA loans require mortgage insurance. If you put less than 20% down on a conventional refinance loan, you will have to pay PMI which can range from 0.55% to 2.25%. Title insurance will also protect the lender if any errors were made with the investigation of the title. These costs can vary by loan value, property location and the lender.

Shopping around and comparing lenders’ cost is a great way to ensure you get the best deal on refinancing your home. Do a side-by-side comparison of mortgage costs from each lender. Once you have chosen a lender, you should receive a closing disclosure prior to closing that will list all the costs so there will be no hidden surprises at closing.

Click Here For the Source of the Information.

Home Sales Will Stay Strong Into the Fall

/in

The COVID-19 pandemic changed the way spring home-buying season worked this year. The pandemic pushed the homebuying season from spring to summer. Realtors have been busy these past view months and are currently busier than ever.

The Midwest has the most contract signings the first week in August at 21% followed by the South at 20%, the Northeast at 13% and the West went down 4%.

The National Association fo Realtors reported that this month has begun strongly with contract signings. In fact, the number of new contract signings is outpacing new listings because of the low inventory of homes. This has made the typical property sell within 26 days for the month or so leading up to August 2.

With the push back on the spring market, realtor.com’s Housing Market Recovery Index said that August has become the new May when it comes to home sales. Agents have been showing and selling nonstop in August.

“About mid-May, it just accelerated,” Terry Story, a Realtor with Keller Williams Realty Services said. “Everybody came out of the woodwork and it just keeps getting faster and faster and faster. [And] we’re selling property to people sight-unseen out of the area.”

Story is from Boca Raton and she explains that because of the low inventory in her area, many homes are in bidding wars. Many city dwellers are moving to Boca Raton and wanting bigger houses making single-family homes the hottest commodity in Boca Raton.

The housing market is hot all around the United States and will probably remain this way through October. Realtors are reporting that houses are selling for way over asking and buyers are scrambling to do anything to secure a property.

“I don’t know that we’re going to see a slowdown,” Story said. “. . . we anticipate that the market’s going to stay like that for a while. It started off with pent-up demand, where we didn’t have any inventory so we didn’t have any activity for a couple months.”

Click Here For the Source of the Information.

September 8th Will Mark the First Day of Classes for St. Tammany Schools

/in

Master bathroom has a large double vanity with tons of cabinet space and a nice marble countertop. The master bathroom also features custom lighting.St. Tammany parish students will get to have an extended summer due to the coronavirus.  School will start after Labor Day this year because of the surge in coronavirus cases. Unfortunately, this also means there will be fewer holiday breaks.

The 40,000 students starting back to St. Tammany schools will have a staggered schedule. A quarter of the students will attend each day for the first day of school. The students will be divided alphabetically and the first day will be from September 8th to September 11th. This will give the students an opportunity to become familiar with all of the requirements due to the coronavirus. Teachers will report August 31st and will have professional development through September 3rd.

September 14th all students will attend regular classes. Before entering the school, the students will be screened and have their temperature checked. All students third grade and above will be required to wear a mask.

Pre-K through 5th grade will attend classes every day while students in grades 6-12 will go to school two days a week and every other Friday. For the other days, they will work remotely.

With the delay, there are many changes to the 20-21 school calendar. Thanksgiving break will be three days instead of a week and Christmas break will be two and a half days less. There will be no Mardi-Gras break and spring break will only be three days this year.

Parents and teachers both have mixed emotions on the change, but most would rather be safe than sorry. “I’m not comfortable with him being in a classroom yet,” parent Sarah Schultz said. “The delay allows me to have another month to determine how we feel.”

Click Here For the Source of the Information.