May Sees an Increase in New Home Sales

 May 2022 saw an increase in new home sales and many say it is due to the rush of buyers to buy before the June interest rate increase. May saw a 10.7% increase to a 696,000 seasonally adjusted annual rate from April in sales of newly built single-family homes. This is based on the number of

homes that would sell if the same pace continued over the next 12 months. New home sales though are down 10.6% in 2022 on a year-to-date basis.

For a sale to count, a new home sale only occurs when a sales contract is signed or a deposit is accepted. The new home can be in any stage of construction and does not have to be completed.

“Though new home sales registered a solid increase in May, we expect sales to decline in June following the Fed’s action to significantly raise interest rates in an effort to cool the economy and ease inflation,” said Jerry Konter, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Savannah, Ga. “High construction costs and rising mortgage rates are pricing many buyers out of the market. Only 10% of new homes were priced below $300,000 in May, compared to 23% a year ago.”

“While sales were up in May, the 696,000 pace was 5.9% lower than a year ago and new home sales on a year-to-date basis are down 10.6% thus far in 2022,” said NAHB Chief Economist Robert Dietz. “Moreover, the months’ supply measure is elevated at 7.7, but existing home inventory remains very tight and this supports demand for new construction.”

The inventory of new single-family homes is still up at a 7.7 months’ supply which is up 42.6% over 2021. With the inventory up, the median sales price did go down to $449,000 in May from $454,700 in April. This decrease can be blamed on higher construction and development costs.

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Where To Find Price Cuts in Today’s Hot Housing Market

 

Today everyone hears of the hot housing market with home prices soaring, but this is not the case in some areas of the country. The regional housing market is being to see a big uptick in price cuts which means the housing market is beginning to slow down.

According to Redfin, in May 2022 there were more price cuts than compared in May 2021 among the 108 regional housing markets they measured. In fact, only six of the regions did not see price cuts. May 2022 saw 25.7% of the listings with price cuts whereas only 15.7% had price cuts in May 2021. Of the 108 regions, 29 of the regions saw over 30% of its home listings cut in price.

 

The regions that are seeing these price cuts first are the regions that shot up the most in prices during the pandemic. Provo, Utah was on top of the list with 47.8% of its home listings showing price cuts between May 2021 and May 2022. The top ten regions were Tacoma, WA with 47.7%, Denver, CO at 46.9%, Salt Lake City, UT at 45.8%, Sacramento, CA at 44.3%, Boise, ID with 44.2%, Ogden UT with 42.6%, Portland, OR with 42%, Indianapolis, IN with 41.9%, Philadelphia, PA with 41.2% and Seattle, WA with 40.6%. New Orleans made the top 20 with 36.4% of its home listings seeing price cuts.

Professionals in the industry say that this cooldown is by design. The Fed announced they were going into inflation-fighting mode. This can be seen with the mortgage rates rising. The average 30-year fixed mortgage rate went up from 3.2% to 6.7% over the past six months. This coupled with record home price appreciation has pushed many buyers out of the market. Those borrowers who must meet strict debt-to-income ratios have lost their mortgage eligibility. This has caused a shift in the U.S.housing market from a hot market to a cool-down market.

The cooling in the housing market is set to only intensify in the coming months. According to Freddie Mac’s deputy chief economist Len Kiefer the housing market has entered into the “most significant contraction in activity since 2006.”

“I’d say if you are a homebuyer…or a young person looking to buy a home, you need a bit of a reset. We need to get back to a place where supply and demand are back together and where inflation is down low again, and mortgage rates are low again,” Fed chair Jerome Powell told reporters last week.

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Tips for Purchasing a Home That Will Appreciate

 Most houses in the current housing market will appreciate no matter where they are. This is not always the case so it is a good idea to make sure you choose a house that will appreciate. When choosing a home, there are many factors to consider. Even though some are out of your control here are some tips to think about when choosing a home when it comes to a home’s appreciation.

 

Find a Valuable Property

Land value can determine some of the value of your home. Land appreciation is influenced by fewer factors than the house itself. Choosing a home that is on a valuable piece of land will help your home’s appreciation. Regardless of a home or structure, the land value can help value to remain consistent.

Location, Location, Location

In real estate, it is all about location.  This old saying hasn’t become a staple of real estate for no reason; location really does play a massive role in the desirability and, by extension, value of a home. There are a good amount of factors that make a piece of land valuable such as proximity to desirable features (parks, shopping, restaurants, etc.), the quality of the school district, a quick (or at least reasonable) commute to a city, and if it is considered an “up and coming” neighborhood.

Consider a “Fixer-Upper”

When a home needs some TLC, the current value is usually lower than what it could be fixed up. Many want a move-in-ready home that does not need any improvements and are willing to pay the premium for this convenience. If you are willing to renovate, then you can pay a low price, fix it up and sell for a premium. If location is very important to you, then you might be able to find a “fixer-upper” for a lower price in your desired neighborhood.

Be Smart About Upgrades

Renovations can add up in costs. When you are choosing what to update, be strategic in choosing what work needs to be done. You need to make sure the renovations you choose to do, will add value to your home.  Certain renovations are pricier than others and some are more valuable in others in terms of how they can contribute to your home’s appreciation.  Many renovations that will add the bucks to your home include garage door replacement, kitchen remodeling, siding replacement, and window replacements.

If you are ready to purchase a home, a Realtor can help you find the right home in the right neighborhood. A Realtor can help you decide on the best renovations and recommend contractors. If you want a move-in ready, they can help you find a home that will definitely appreciate in the future.

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How To Get a Combined Land and Construction Loan

 

Most of the time everyone thinks they have to purchase land and then build later, but this is not the case. Many do not want to have to wait for a later construction date. Even though lenders are not comfortable with combining land and construction loans, it can be done.

First Step – Find a Lender

“Many commercial lenders/mortgage companies do not feel comfortable financing land and/or construction in rural areas,” says Taylor Hart, manager of the Auburn/Opelika Branch of First South

Farm Credit. “If a commercial bank will do construction loans in rural areas they often will require the owner to survey out a smaller parcel for the home site which leads to added costs and time for survey and recording at the courthouse. This ‘subdividing’ can also cause the project further delays if the county requires it to go before the subdivision committee.”

The Loan Process for Approval

With a company like First South, a potential builder/land purchaser will need to follow their loan approval process. The process will protect both the lender and the borrower when dealing with a combined loan for land to build.

“We would need plans, specifications, and an executed contract from a licensed builder to be able to have an appraiser arrive at an appropriate appraised value. We can typically lend up to 85% of the appraised value of the total package of land and home,” Hart explained..

“Barndominiums -some sort of combination of living quarters with a barn look- have become really popular lately and most commercial lenders are not comfortable with this type of construction. As a rural lender First South can provide construction loans on these as well. Most of our construction type loans are dealing with either homes, barns, or poultry houses (which would be commercial, and have their own different set of criteria),” he said.

How the Combined Loan Is Set Up

Combined Loans that are done by First South follow a different pattern. There are many options to choose from on setting up land for build loans.

“We are able to do construction loans for up to 12 months, interest only if that is what the member wants. We then do a permanent longer term loan. We also have a program we offer that is done with one closing still consisting of a construction period followed up with the longer term mortgage. This is popular as rates are rising due to the fact we can get the rate and term locked down now instead of the end of construction,” Hart pointed out. “This process takes the risk of rising interest rates during construction out of the equation. First South likes to sit down with our members and tailor the loan to what fits where they are in life and what is comfortable for them. My suggestion is to call the First South office in your area to discuss options. We can lend with terms up to 30 years”.

If you feel a combined loan is a fit for you, then contact First South today. “First South is a co-op owned by our borrowers. As such, we pay a patronage refund back to our borrower/members once a year. Does your mortgage company pay you money back,” he asked.

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Things To Consider if Choosing a Solar Panel Roof for Your Home

 Solar panels are a great way to create an energy-efficient home. There are more options nowadays when it comes to style and options. Here are some things to consider if you are thinking about installing solar panels on your roof.

1. Solar Panels vs. Solar Shingles

There are two common options that most homeowners choose when it comes to solar options. They both do the same thing, convert sunshine into electricity that powers your home with clean energy.

Solar panels and solar shingles can end up saving you tons of money in the long run when it comes to energy costs.

Solar panels have been around for a long time and have improved over the years when it comes to aesthetics and efficiency improvements. Even though they still work the same, they require more than one installation. They have to also be installed by a solar company separate from your roofing company. Solar panels go over your existing roof.

Solar shingles only require one installation because they are installed much like a regular roof. They are installed like an architectural shingle and can be installed by a qualified roofer. Timberline Solar roofing system is made of an asphalt shingle that is combined with solar technology.

2. Return on Investment

There are actually online solar tools that can help you calculate how long it will take for your solar system to pay for itself. Since there are solar shingles, the cost of a solar roof can take the place of the cost of replacing or installing a new roof. Why? Because solar shingles come with solar already integrated. There will be only one installation cost and one material used on your roof.

This in turn makes it an addition to the long-term investment savings. You are saving on energy costs by powering your home from the natural sun. You can also gain federal incentives by installing solar panels or solar shingles. To see if you will qualify, visit https://www.dsireusa.org.

3. Roof Requirements

If you are adding solar to your existing roof, you need to make sure it is ready for solar. You will need to consider the existing roof location, condition, and age.

It would be a waste to add solar to a leaky roof. The existing roof’s condition can impact installation choices. It is never a good idea to put solar panels on an old roof. If you have to have any repairs done to the aging roof after solar panels are installed, then you will have to hire a solar contractor plus a roofing contractor.

4. Maintenance and Cleaning

Solar shingles age at around the same rate as regular roof shingles but solar shingles are lower in maintenance and do not require as much cleaning as a regular roof shingle. This also is true for solar panels. Natural soiling does occur but does not really impact energy production. In order to clean solar panels and solar shingles you just have to hose down or sweep debris from them.

5. Withstanding Weather

Ask the experts how solar solutions can hold up in different types of weather situations. They are built to withstand bad weather and the majority have warranties that will cover severe weather damage. Solar shingles in some occurrences are better at weatherproofing than solar panels. Sometimes secondary installation of solar panels on top of a roof can jeopardize your roof.

There are tons of advantages when it comes to solar roof solutions. GAF can link you to a GAF Certified Contractor who can help you with both your solar options and installation.

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Ideas for the Guest Bathroom

 A guest bathroom should be a nice area for guests to make themselves at home. A guest bathroom is not used as much as a primary or secondary bathroom so it is easier to keep it tidy and neat. Here are some tips from the professionals on how to turn your guest bathroom into a luxurious space for guests.

Keep It Simple and Fresh

A nice calming area is always fresh and simple. Guest want to be able to make it their own space. Some

guests might love fragrances while others might be allergic so keep aromas minimal. A great way to keep an area fresh and scent-free are to wash soft surfaces often, open a window and get a dehumidifier for the guest bathroom.

Invest in Digital Shower Fixtures

Southern Living offers this tip saying it offers your guests the highest level of convenience. Guest can enjoy their preferred setting with no hassle. When you are not familiar with a showerhead and handle fixture it can be frustrating and this eliminates this problem. Use an overhead rain shower for a spa-like feel.

Offer Posh Towels and Robes

Guests want to feel like they are in the lap of luxury. A good way to give them that pampered feeling is to use the highest quality towels and robes. Adding a soft guest robe and slippers adds the feel of a luxury spa or hotel. Examples of some luxury towels are Turkish bath towels, waffle weave, or quick-drying options.

Provide High-End Bath Products

When you visit a 5-star hotel, you always get the high-end bath and personal care products. You will want to do the same in your guest bathroom. Have an array of options for your guest from scent-free soap and lotion to fragrant shampoos. You can also go as far as adding loofahs and sponges made of all-natural materials for a spa-like feel.

Maximize a Small Guest Bathroom Space

Usually, a guest bathroom is not the biggest in the house. If you have a small area to work with use open shelves for storage and a recessed cabinet over the vanity. Decorate with light-colored materials making the space feel open and bright. Add a small vanity with some counter space and add hooks to hang a hairdryer, hairbrush, and other accessories.

Just Add Paint

You will want to paint in light natural hues that give a modern spa feel. Painting the walls and ceiling of a guest bath is an easy way to update your space. Along with the natural hues, add a bamboo bath mat for an earthy touch.

Put Essentials On-Hand

Keep toilet paper and necessities within hand reach for your guest. You do not want to tuck them away in a cabinet or a vanity out of sight and reach. If you do not have any place to store them, add a tiered bar cart. You want to make sure your guest’s bathroom has all the comforts so your guest does not have to ask.

With these few simple tips, you can make your guest bathroom an idyllic escape. You can take an ordinary space and transform it into a luxury bathroom with a spa-like feel.

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Energy Efficient Materials To Use In A New Custom Home

 Having an energy-efficient home is a plus in the home industry. If you’re building a new home using energy-efficient materials, you not only can improve your utility bills and help the environment but also enhance your home’s value. Professionals in the industry report that energy efficiency is becoming so important that they’re developing more energy-efficient materials all the time.  These can be from using eco-friendly light bulbs to eco-friendly housing materials. If you are unsure of what to use for a new home here are 10 energy-efficient materials.

 

1. Recycled Steel

Metal is one of the most recycled materials out there and is very easy to recycle. Metal roofs and other metal construction materials can be made of recycled steel. Reports show that 60% of new steel is actually made from old steel. The benefits of using recycled steel are lower CO2 emissions, lighter weight, and durability. It is a perfect recycled material to use in the construction of your new home.

2. Spray Foam Insulation

Insulation is very important when it comes to insulating your home. Spray foam has a low energy leakage and is a great insulator year-round. Spray foam gives off no harmful emissions making it safe for the environment and for your home’s indoor quality. The benefits of spray foam are it is shrink-proof and water-resistant.

3. Smart Thermostat

Smart thermostats can actually learn your climate preferences. This will help your home stay comfortable when you are home and less comfortable while you are away. This helps save energy and maintain a comfortable environment at the same time.

4. Low-E, Dual Pane, Or Triple Pane Windows

Reports say that around 30% of the heating and cooling costs in a home are due to the energy that seeps out through your windows. Low-E windows will reduce the energy that can be lost through windows. They can also block harmful rays such as UV rays and infrared rays.

Homeowners can purchase both dual-pane and triple-pane windows. These are very energy efficient. Dual-pane windows are more popular than triple-pane because they are lighter weight, thinner, and less expensive.

5. Cool Roof

A dark-colored roof can make an attic reach upwards of 150 degrees on a hot summer day whereas a white roof reflects light back keeping your attic cooler. Cool roofs are not just white roofs but can be made out of steel, asphalt, shingles, and more.

6. Solar Panels

Solar panels are great because they take the energy from the sun to generate power for your home. There are solar shingles now that are more aesthetically pleasing for your curb appeal. Solar panels can be purchased and even leased.

7. Plastic Composite Lumber

One problem with wood is that it can rot. Homeowners are very familiar with replacing rotten wood. A more economical way to preserve your home building materials is to use plastic composite lumber. Plastic composite lumber is made up of wood pulp and resins. This building material can look like wood but can withstand exposure to moisture. This material is perfect to use for decks or fences.

8. Thermostat Radiant Barrier

Thermostat radiant barriers function in ways that are similar to cool roofs. Thermostat radiant barriers reflect sunlight to keep your house cool. Your energy bill can go down as much as 17% during the hottest days in the summer.

9. Natural Insulators

Denim is a great natural insulator because it is made from recycled blue jeans. Wool is one that can be a great insulator and is fire resistant and will not mold or rot. Straw bales can be great insulators and can last for thousands of years if it is kept dry.

10. Plant-Based Polyurethane Insulators

Plant-based polyurethane insulators are great and environmentally friendly. These can be made from bamboo, hemp, and kelp. They are resistant to moisture and heat which is a plus.

Remember it is best to work with a contractor who is familiar with building a green home. These contractors are used to working with energy-efficient building materials.

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The Beginning of 2022 Sees An Upward Trend In Residential Construction Spending

 

The National Association of Home Builders analysis of Census Construction Spending reported a 1.1% rise in private residential construction spending in February. The brought the seasonally adjusted annual rate to $850.6 billion. The private residential construction spending total was 16.6% high than reported a year ago.

 

Most of the gains were from spending on single-family and multifamily construction. Single-family construction increased to a $465.4 billion annual pace which was up 2.5% in February. Multifamily was up 0.1% making it 7.8% higher than a year ago.

Private nonresidential construction spending also saw a spike. It increased 0.2% from January’s estimates making it a seasonally adjusted annual rate of $503 billion. This was 6.2% higher than the report this time last year. The increase stemmed from class of power at $1.5 billion, class of manufacturing at $0.5 billion, and class of transportation at $0.4 billion.

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Tips to Choosing The Perfect Paint Color

 

Everyone has different tastes but a good rule of thumb is to take your furniture and light into consideration when choosing a paint color for a space. Searching for a paint color can be a daunting task. Here are some tips to take when making your decision.

 

Figure Out What You Like, Not Just What’s Popular

Magazines and Pinterest boards are a great way to brainstorm ideas but it is important to choose a color you really like versus a color that is seen in all the trendy media. Trends of course should be used as inspirations. When you are browsing colors, look for something that provokes the mood of your space, speaks to your personality, and find appealing.

Take Your Furniture and Décor Elements Into Account

If you are living in your home now, then you do not have a blank space. You will need to take into account your furniture, hardwood, tile, or carpet. These are things that you will not change, so the paint color must compliment them. If you are starting with a new home, you still need to make sure the furniture that you choose and the decor elements fit with the paint color. You can choose a paint color and then choose furniture and accessories based on your color.

Test Your Colors in Your Specific Light

Lighting in every space is different. Light and color play off each other and can change throughout the day. You need to make sure you like the way the color looks both day and night. This basically means it looks good in both natural light and artificial light. Add a paint color to your wall and live with it for a few days. This can help with making the final decision. Remember northern exposure results in a cooler look so a warmer paint color will help balance out the lack of natural light. Southern exposure will go great with neutral colors.

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Today’s Market Is A Good Time To Sell Even With the Challenges of Buying A Home

 Weighing the pros and cons of selling your home in this market should be a no-brainer. Even if you have to buy a home because of selling, the incentives to sell are too good to pass up.

According to a 2022 Home Buyer Report, close to 89% of current homeowners does not want to list their homes in the current market. It is a challenge to find your dream home in this market. Reasons

include Buyer’s concerns about finding a new house and paying too much for a new house.

Competition over the small inventory is driving the prices up. It is not unusual to have multiple offers on a home. The good news is a seller will get more money in their pocket for their current home.

Remember there are buyers everywhere who are bidding on the same listing. In 2019 it was reported that 1.3 million homes were on the market, now inventory is down 57%! The pandemic caused a lot of inventory shortages. Today, homes sell within days, not weeks or months. According to NerdWallet, 26 million Americans plan to purchase a home in 2022.

Now is the time to sell and get a big profit. High demand in the face of low supply has made for record-high prices. This means you’re more likely to pay off your current mortgage and walk away with a profit than you would’ve been just a few years ago.  Homes are selling at or above the asking price 29% paid more than the list price.

The typical sales price whet from an average of $270,000 in 2019 to $344,000 in 2021. The National Association of Realtors reported that the average rose even higher in some areas of the country. Around 74% of sellers did not reduce their asking price in 2021, in 2019 60% didn’t and in 2011 only 39% didn’t reduce the price.

Homes are moving quickly as reported by the National Association of Realtors. They reported that the typical time on the market is around one week. This is down from around a month in 2019 and 11 weeks in 2012. Sellers are not having to wheel and deal as much with buyers.

You are not seeing as many warranties offered or money for repairs. In fact, three-fourths of sellers did not even offer any incentives to entice buyers. The National Association of Realtors said only 13% offered a home warranty in 2021 which was down from 23%. Sellers assisting with closing costs fell from 20% to 9%.

If you are still on the fence about selling because you do not want to turn around and become a buyer, here are a couple of questions to consider.

Are you willing and able to move somewhere more affordable?

If you answer yes, then you should look for a less competitive market because your money will go further. If you are willing to move to a rural setting, you might not have as much competition.

Are you ‘over’ homeownership?

If your answer is yes, then renting is a good option. Owning a home is not for everyone as it can be expensive and a financial stress factor. According to NerdWallet 2022 Home Buyer Report, 1 in 5 homeowners feel home repairs and maintenance are some of their top financial stressors.

Are you highly motivated?

If your answer is yes, then you will have what it takes to become a buyer in this competitive market. You can endure the frustrations of having to take a good bit of time to find your home and will more than likely have to make several offers on several homes before you go into escrow.

Selling a home in the current market is easier, however, you still would be wise to work with a Realtor. A Realtor can help you navigate the market.

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How To Buy a Home and Sell a Home at the Same Time

 

If you are buying a home or selling a home, they both can be very stressful. In this hot market, a seller may not have time to even find a new home before their home goes under contract. Here are a few tips to help you with both selling and buying a home.

 

Tips for Buying First

Did the chicken come before the egg? You can’t sell a home and buy a home at the exact same time.
You need to figure out what you should do first. Here are several advantages to buying a home first.

If you find a home and want to put a contract down, ask for an extended closing. A great recommendation is to ask for an extended 60-day closing to allow you time to get your existing home ready and listed. Remember it is critical to sell your home so you can move into your new one.

Another way to get a contract on your new home is to put an offer in with a contingent on the sale of your home. This will ensure that you will not be faced with two mortgages. Currently, this is a seller’s market, however, you can still ask for this contingency with a solid offer. If for some reason your current home does not sell, you will not be legally bonded to your new home.

If you are searching for a new home, you know you will need to sell. Make sure your home is ready to sell by doing it as you are searching. Start a checklist of what needs to be done before you list.

Tips for Selling First

If you have to sell your home before you start a search for a new home, consider finding temporary housing. This could include living with family or friends, at a hotel, an apartment, or a rental home. This will give you time to find your perfect new home. Allow at least 2 months to find temporary housing.

In this market, there is no time to procrastinate. If you find a new home you like, you have to jump on it. If your home sells, then you have to find a new home fast. Have a pre-approval in hand, know your budget and timeline beforehand. When you find your dream home, you won’t have to hesitate.

Know what you want before you shop. Again, in this fast-paced market, you have to make an offer on the spot. A good way to do this is to make a list of must-haves such as school location, number of bedrooms, and neighborhood amenities. This list can also help your Realtor narrow your search to make it more efficient.

Remember selling or buying a home can be less stressful when you use a Realtor. A Realtor will get you the best deal in the best area for you!

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The Pros and Cons of Buying Land To Build A Home

 

Owning land is part of the American dream. This does not mean that this is the right move for everyone. Here are the advantages and disadvantages of purchasing land for a home.

Here are three reasons why purchasing land would be a great idea.

You Can Build Your Dream Home

Who wouldn’t want to build their dream home? Purchasing land gives you the perfect opportunity to do this. Your home can be exactly the way you want it (provided the home plans comply with local zoning

and building laws). If you are licensed as a general contractor, then building a home will be a whole lot cheaper than purchasing a new construction home.

Diverse Investment Opportunities

Residential real estate is still a smart investment. Land and buildings are great real estate assets but the land is more versatile for investment opportunities. You can purchase land and sit on the vacant lot and resell it for higher price years from now. The land has little maintenance and appreciates over time with little done to it.

You Can Qualify for a USDA Loan

If you purchase land in a rural area, then you are able to qualify for financing with a construction loan guaranteed by the U.S. Department of Agriculture. This is perfect if you are going to build your primary residence on this land. Another plus is that a USDA mortgage will not require you to have a downpayment.

There are however several reasons why this would not be a good idea for many.

The Process Requires More Research

Building from the ground up can be a daunting task with a litany of things to do before you even break ground. You not only have to hire an architect and a contractor but you have to conduct soil tests, check local building codes and zoning regulations, obtain building permits, and make sure that you have access to underground utilities. Be sure to obtain a land survey to confirm the surface area you are purchasing. You do not want to have a dispute about your land’s boundaries.

You May Have More Options in Rural Areas

A lot downtown is worth a lot more than a lot in a rural location. In sought-after locations, you will be bidding against developers, investors, and other homebuyers for land. You will have better luck and more opportunities to purchase a piece of land in rural areas. This would not be ideal for a family with kids that need local amenities.

Getting a Conventional Loan May Be More Difficult

A lender will want to have tangible assets to use as collateral. Lenders look at land as a riskier investment than a home that is already standing. If a lender will give you a conventional loan, there will be very strict requirements. Some of these requirements might be a better credit score and a better debt-to-income ratio than if you were purchasing a home. Lenders might require a larger down payment and higher interest rates with a shorter repayment period.

If you are in between on whether to purchase land or a ready-built home, then a teardown might be right for you. A teardown will already have access to utilities and you will not have to spend as much time with permits as you would on a vacant lot. Check with your local Realtor who can help you choose the right path for you.

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2022 Southern Kitchen Looks

 Kitchens are the heart of the home and they are especially a big deal in a Southern home. Whenever people gather at home whether big or small there is always food involved in the kitchen. Southern Living magazine featured the 2022 Living Impressions™ Collection by Formica Group. In the article, they featured three different patterns for a kitchen’s surface countertops and backsplashes.

Modern Vintage

The sugar glass pattern is perfect for those who love old and new. The elements are of new and old design and will fit in almost any kitchen’s decor. Celebrity designers have dubbed this look as “Grandmillennial” or “granny chic.” The sugar glass pattern is described as a vintage-modern fusion. The company creates the look by scanning glass chips, milk, and sugar to create an exciting new tactile multidimensional pattern.  The sugar glass backsplash is a perfect fit for any color cabinetry.

Rustic Luxury

This look doesn’t mean an old rickety cabin in the woods. After the pandemic hit, bringing the outdoors in has become an even more popular trend. This look can be completed using natural materials and earthy hues. A great example is to use reclaimed wood on a kitchen island. Their Walnut Butcherblock

is a perfect pattern to use for this look. The farmhouse design has been a popular trend for years and will stay popular this year.

Marvelous Marble

Marble is a popular trend that can give your kitchen a sleek look. The new Manhattan Marble and the classic Mediterranean Marble pattern are perfect for this. They “offer a stunning interplay of white and light. Marbled Gray gives an “abstract and industrial” look and Slate Noir is described as a “little black dress” pattern.

Many of us have spent more time than usual in our homes and might be ready for a new look. Southern Living suggests looking at the 2022 Living Impressions™ Collection from Formica and ordering a free sample at www.formica.com/livingimpressions.

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The Next Generations Should Look at a Career in Construction

 

With the housing market so strong and the inventory low, it is no wonder that the construction industry is booming. Residential construction has tons of talented and creative people in the industry. This industry has great earning potential, job security, and room for advancement, which gives those in the industry a sense of personal achievement. This makes it a perfect industry for your children to consider in the future.

There are a couple of big factors to consider when it comes to your child’s future, education and career. These factors tie into both by gaining knowledge and skills and putting them to use. A good way for

your child to consider all career options is to experience Career and Technical Education (CTE).

CTE provides younger generations with the education and skills they need for college and careers. It also gives kids a reason to learn by taking real-world skills and knowledge in a specific field to focus on. There is a high demand for CTE. Ninety-four percent of parents support it, 86% of both students and parents vocalized they wish they had the opportunity to have received more real-world knowledge and skills at school. In fact, 54% of business leaders say the educational system does not implement CTE enough.

Remember there are plenty of opportunities in the construction industry. There are occupations such as carpenters, plumbers, and HVACR technicians that are in high demand. If college isn’t your thing, there are other ways to get to a good career.

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Your Home Projects Might Give You Energy Tax Credits

 

Tax season is here and many are scrambling to get their taxes done on time. There are many tax credits that home builders might be able to benefit from including the 45L tax credit for single-family and multifamily developers exceeding 2006 energy standards.

The 45L energy tax credit can be claimed the same year each home is sold or leased/ It can be on newly constructed and renovated homes and apartments. In order to get the tax credit, an eligible certifier must

perform energy modeling, testing, and certification. A home that is three stories or less is eligible. These can be single-family, manufactured homes, apartments, condos, and assisted living facilities.

Volume home building can also qualify for R&D along with the 45L tax credits. The homes must follow certain design specifications and activities. BRAYN Consulting, a company composed of lawyers, engineers, HERS raters, and accountants, can assist with these niche tax credits. The engineering staff at BRAYN can work along with your CPA firm to review, documentation, and substantiation of the tax incentives specific to your business.

Remember if you are a builder you do not want to leave any money on the table. A company such as BRAYN can help you with the tax process.

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Will 2022 Home Prices Still Surge?

 CoreLogic Principal Economist Molly Boesel reviels that the home price appreciation will slow down after last year’s surge. 2021 brought an 18.5% year over year increase in national home prices. CoreLogic Home Price Index’s data shows this is the highest 12-month gain since the index was founded in 1976.

 

“Consumer desire for homeownership against persistently low supply of for-sale homes created one of the
hottest housing markets in decades in 2021 and spurred record-breaking year-over-year home price growth,” Boesel said.

This year, Boesel predicts that the annual growth rate in home pricing will slow down each month and will average 9.6% for the full year.

Rent has also increased in single-family homes. Rent was up 11.5% year-over-year in November 2021.

“The November 2021 increase was more than three times the November 2020 increase, and while the index growth slowed in the summer of 2020, rent growth returned to its pre-pandemic rate by October 2020,” Boesel noted.

Now is a great time to purchase a home. Contact a local Realtor who knows the market and the area.

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The Impact Mortgage Rates Will Have on Spring Home Buying

 Looks like mortgage rates are going to rise and home inventory should start to pick up. Home prices are still increasing at a fast past and probably will continue through this year. According to First American’s Real House Price Index (RHPI),  affordability declined 21.0 percent compared with a year ago, as the growth in nominal house prices combined with the 30-basis point increase in the 30-year, fixed mortgage rate vastly outpaced the 4.4 percent increase in income. Affordability is likely to decline further in 2022, because both mortgage rates and nominal house prices are expected to rise.  Here is what this will mean for you in the Spring.

Fed Expected to Raise Rates Soon

The Federal Reserve has announced rate increases will come due to fear of inflation. The long-term

bond yields are also increasing and the mortgage rates usually follow the same pattern as long-term bond yields. The Federal Reserve is tightening monetary policy, higher inflation expectations, and an improving economy. The majority of economists believe the 30-year fixed mortgage rate will increase to 3.7% by the end of this year.

Rising Mortgage Rates Likely to Reduce Affordability

The Real House Price Index which measures housing affordability based on changes in income, interest rates, and nominal house prices, can help industry leaders determine how shifts in interest rates and income can affect homebuyers’ power and affordability. Let’s face it, an increase in mortgage rates will impact affordability. When the rates increase, it usually means that the economy will improve and there will be stronger wage growth. A higher-income can even the playing field when it comes to an increase in home prices and interest rates.

FOMO (Fear of Missing Out) or FOBO (Fear of Better Options)?

Homebuyers are continually watching the interest rates, and many are buying homes now in order to avoid further inclines in the rates. It is reported that the rates will increase steadily through the remaining months of 2022. Many potential home buyers have FOMO, the fear of missing out, on the historically low-interest rates. Buyers are jumping into the market and pushing the springtime surge. On the flip side, the springtime is the time a lot of sellers list their homes and this might put homebuyers into the FOBO, fear of better options, mode. There may be better home options out there even if the prices are higher.

If you are in the market for a home, contact a local Realtor who can help you with the home buying process. A Realtor can also find the best neighborhood and home for you.

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Is a Lot or Construction Loan Right for You?

 

There is not much home inventory out there right now and it might be a good time to think about building your home. If you are considering building a custom home, then you will need to obtain a different loan other than just a mortgage on a home. Here are the different types of loans that are available for those looking to build.

Sometimes you find the right lot or piece of land but are not planning on building for a while. If this is

the case, then a lot or land loan is right for you. A lot or land loan is a little bit harder and more complex than a standard home mortgage. There are shorter terms, a higher downpayment, higher interest rates, and more commitment and underwriting for you.

“Owners of raw land are much more likely to stop making payments and walk away from the property in the event of a financial event in their lives,” says Casey Fleming, a mortgage adviser with C2 Financial Corporation.“And land is much harder to sell [than a home].”Many lenders do not even offer lot loans, and community banks and local credit unions can be a better bet than large national banks. As with any loan, be sure to shop around so you can compare all of the offers available to you.”

If you are ready to purchase land and build right away or if you have land and want to build, the construction loan is best for you. If you own land, the equity on the land can be put up as collateral to help finance your construction loan.

When you are shopping for a construction loan, make sure to choose a very experienced construction loan broker. There are two types of construction loans a standard short-term and an all-in-one.

A short-term loan is used most when someone is financing to build a custom home. The short-term loan is used to build the home, and then a long-term loan (mortgage loan) is used to pay off the completed home. In order to be pre-approved, you will need to have a downpayment of at least 20% to 30%, a good credit score, a low debt-to-income ratio, and cash reserves.

There are plus and minuses to using this type of loan. The negatives are you have to have two closings and you might receive terms for your second mortgage that aren’t what you were planning on due to rising interest rates. On the other hand, you might get a better rate if the rates are lowered during the time period you are closing on your mortgage. A positive to this loan type is flexibility due to the ability to pick and choose instead of relying on a package loan deal.

The other option is an all-in-one loan. So instead of two separate loans, lenders offer packages with short-term construction loan terms and a mortgage loan set in advance.  The construction loan is converted to a long-term, permanent mortgage after the construction is completed, meaning there is just one loan and one closing. For preapproval on an all-in-one loan, you must obtain a qualified, licensed builder, detailed specifications about the custom home which includes projected costs, and a home value estimate from an appraiser based on the plans of the home you are going to build.

If you are planning to purchase land and build a home either now or in the future, contact a lender who specializes in these types of loans. They will not only be able to advise you on what type of loan is best, but also will get you the best rates possible with great terms.

“The construction-to-perm loan allows you to modify your construction loan to the permanent stage, which can be any term that you chose when the construction-to-perm lender offered it to you at the beginning of the construction stage. You normally do not have to requalify for the permanent loan,” says mortgage expert Joey Campbell.

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The Plus and Minuses of Buyer a Home During the Winter

 It is said that spring is the time to buy a home but is this always the case? During the winter its cold and everyone is focusing on the holidays so it might just be the right time to search for a home. During the winter there is less competition and motivated sellers. Here are several reasons why it just might work for you.

Less competition

Homebuyers tend to buy during the warmer months so the colder months have less homebuyers in the market. For family with kids, the summer is the best time to make a big family change like moving.

Remember, during the winter, without as much competition, you are more likely to win a bidding war in a competitive market.

Faster escrow closing

Since home sale surge during the spring/summer, loan officers are extremely busy. Since there are less homebuyers during the winter, the loan processors are not as busy. You can move through the loan process faster and more efficiently.

Motivated sellers

There usually is a reason a seller list during the winter. Generally they do so out of need, not desire. If you are looking during the winter you can take advantage of this.

Lower home prices

Usually sellers who sell during the winter need to sell. When sellers need to sell for a reason they usually price to sell. The winter is the time to find a home for a bit lower price.

Inclement weather showings

Looking at home in the wind, rain or snow will give you a good idea of how much the house can withstand. Ask to look at current utility bills to see how they house holds up in hard weather. If the home is drafty, this is the perfect time to figure that out.

Final note on buying in winter versus spring

Trends can vary region to region so it should be a person choice of when you want to hit the market. Contact a Realtor if you are in the market for a new home. No matter the season, a local sale agent can help you along the way.

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