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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