Tag Archive for: new home inventory

Custom Homes Trend Down Slightly From All Time High

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As the economy began to recover, custom homes led the way in housing market statistics.  In 2009, the percentage of custom homes being built by an owner, contractor, or builder on the owner’s land – a single, custom home built with collateral – was 31.5%, a record high amount of custom homes being built.

For 15 years, most builders and owners had shied away from building one custom home at a time, however the financial constraints of the Recession brought this trend back in 2009.  The reason that builders were not building 0-609 Lake Circle Front Exteriorcustom homes was because they could build spec homes on credit before the Recession.  However, builders were unable to build spec (inventory) homes because of the overwhelming restrictions on lending following the Recession.  The typical AD&C credit for new home starts without a pre-sold contract was simply unavailable.  Therefore, this custom home building trend for individual builders and individual owners continued until just recently when the housing market started to make a full recovery.

Now, builders are able to build spec homes once again, and the capital that has been built up by new home builders by the selling of new home inventory that had been sitting stagnant for many years has loosened up the purse strings for builders to now reverse the custom home trend.  Also, lending restrictions have eased slightly as well. As a result, the percentage of the housing industry that includes the construction of custom homes has dropped back to 21.9%.

At Bedico Creek Preserve, a master planned, Conservation Community in St. Tammany Parish, our builders build both inventory homes and custom homes for new home buyers on the Northshore.  Our buyers come from Mandeville, Covington, Abita Springs, and Madisonville. We also have around 30% of interested buyers from the Southshore in New Orleans, Metairie, & Kenner.  The reason for this diverse audience of interested home buyers is because of the 16 available builders that build new homes and new, custom homes in our subdivision.  We also offer lots for sale in 7 different, distinctive Neighborhoods in a variety of price ranges and sizes.  Bedico Creek offers something for everyone, so if you have not already had the chance, Come Out & Visit Our Community to Discover the Preservation of the True Northshore Lifestyle.  Call 985-845-4200 or E-mail [email protected].

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Post Recession Recovery in New Home Sales

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The National Association of Home Builders projected approximately 511,000 new homes would be sold during 2015, and the new home sales numbers surpassed that prediction by a small landslide bringing in 544,000 new home sales on a seasonally adjusted basis in December, 2015.  This was welcome news for home builders showing a recovery in new home sales numbers.  The increase was a 10.8% increase year-over-year, and this also heralded the best year for new home sales since 2007, just before the housing market crash.  In the South region specifically, new home sales were up 17.6% – the second highest percentage in the nation.

In addition to an increase in sales, new home inventory also increased during the month of December by 2.6% toThe single-family housing market in New Orleans is seeing a significant increase in the price per square feet for new homes. 237,000 available homes for sale.  However, the combination of the sales rate and the available inventory shows a trend in supply and demand that is on the rise.  The monthly supply of new home inventory fell from 5.5 months to 5.2 months with the building and selling of these new homes.

The prices of homes being sold are also encouraging.  First-time home buyers have yet to take a strong hold in the market, but second and third-time home buyers are making purchases of new homes in the $200’s – $400’s, which means that they are able to “move up” from their existing homes into their next home.  This also indicates the sale of existing homes for sale, which shows a well-rounded, moving real estate market.

Another positive trend that has emerged is the sale of pre-sold homes.  These are homes that builders are advertising before they ever break ground on the new construction.  The rendering and floorplan, as well as the lot layout may be all the new home buyer has to go on to sign a contract to buy the home, but with the reduction in available inventory, the increase in unused building permits and new home starts, the only explanation is that builders are able to sell their homes before they start building them.  This trend was prevalent during the early 2000’s and shows that the housing market seems to finally be on its way to a full recovery.

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2015 Real Estate Market Statistics

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With the housing market being such an important part of the Gross Domestic Product (GDP), the National Association of Home Builders (NAHB) keeps a constant eye on the real estate industry, taking specific measurements of all vital statistics that will keep industry professionals aware of housing trends either before or as they are happening.  There are many ways to measure the growth or shrinkage of housing by just looking at the numbers.  2-176 St. Calais Place FrontSome of the statistics that are measured monthly include housing permits, housing starts, housing contracts, pending sales, existing home sales, new home sales, and many more.

During the month of January, numbers were complied for housing statistics during the entire year of 2015.  The NAHB reported that housing permits and housing starts were up significantly for the year 2015, compared to 2014.  Year-over-year increases for housing permits were up 12% to 1.18 million permits.  Single-family home building permits were up by 7.9%.  Specifically, December, 2015, saw an increase of 1.8% in building permits compared to November, 2015.

For housing starts, the percentages were also significantly high for 2015 compared to 2014. Total single-family housing starts in 2015 rose 10.4% to 715,300.  At Bedico Creek Preserve, a masterplanned community in the Greater New Orleans area, the completion of 2 more neighborhoods during 2015 with developed lots ready to build has accounted for the significant increase in construction of new homes on our lots.  We have also seen a surge in lot sales to individual owners interested in building a new home on their lot.

With 16 new home builders from which to choose, our home buyers and lot buyers have a selection of styles, quality, and floorplans to begin building their dream home or you can buy a new home for sale that is ready to move in.  If you are interested in a new home community that takes you away from it all with a natural setting and wildlife habitat with quality new home construction, Visit Us at Bedico Creek and Choose Your Lot Today.  Contact Us at 985-845-420 or E-mail [email protected].

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Highest New Home Inventory in 5 Years

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News from the National Association of Home Builders (NAHB) is that new home builders are looking for and buying lots and getting building permits, but new home inventory of homes not yet started is still strong because it is possible that these builders are waiting on buyers (pre-solds) before beginning construction.  There is much good news coming out about new home building permits for single-family homes, new home inventory, and new home sales.Lot 59 Bedico Creek

Single-family home building permits were up 2.4% in October, 2015.  Overall, single-family new home building permits are up 8.6% for the year 2015.  Single-family home starts are up year-to-date as well with a slight dip in October due to storms in the Gulf Coast and Southern regions.  Because building permits and starts are up for the year, new home construction of single-family homes is also up across all regions nationally.

New home inventory stands at the highest level since March, 2010, and increased overall in 2015 1.3% to 226,000 available homes.  If homes continue to sell at their current pace (and no new homes were built), all homes would be sold off in 5.5 months.  Inventory for new homes not yet started is the strongest it has been since the end of 2008, right before the Recession.  Builders are looking for lots and labor as the housing market returns in force.  There is simply not enough land for sale or sub-contractors to build new homes to support the amount of inventory coming out of the ground – which is good news for the real estate industry.

In addition to the high amount of new home inventory, new home sales are also thriving to increase 10.7% to 495,000 in October compared to September’s numbers.  The total number of new homes sold has increased 15.7% year-to-date.  The NAHB is predicting an overall sales pace of 511,000 new homes in 2015, and October’s numbers seem to show that it will happen by end of year.

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