New home sales in the South region of the United States increased by 4.5% in the month of November – an optimistic statistic for one of the slower real estate months of the year. This statistic shows the continued growth of new home sales in 2015. Overall, new home sales were higher by 14.5% compared to the 11 months of 2014 at this time. New home inventories are at an all-time high since January, 2010 at 232,000.
A one-time anomaly that is affecting existing home sales and new home sales is the mandatory system change of 
home closing implemented by the United States government at the 1st of October. As of October 1st, all home loan applications taken after this date had to adhere to a new system and procedure that slowed down the mortgage approval-to-close process. This new process informs home buyers every single step of the financing process to ensure that they are fully aware of the financial responsibility that they are undertaking in their home purchase. Because of this, the closings of existing homes was delayed by several weeks as lenders learned and implemented the new system. Title companies also had to adjust to the process as they were required to respond to documentation that normally had been handled differently in past closings.
The effect on sales at the end of 2015 was apparent as existing home closing number stagnated. The overflow effect was that home buyers, which typically start looking at existing homes first, were delayed in making purchasing decisions. Therefore, new home sales were affected by those same home buyers turning to a new home purchase vs. an existing home purchase. However, even with these delays and anomalies, the new home, real estate market is thriving in 2015 – all numbers year-over-year comparatively are on the rise and show no sign of slowing down.
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.
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.
New Urbanism is alive and well in the Greater New Orleans area with Mixed-Use Developments being built where previously housing projects had stood. Many developers are tapping into the multi-family construction industry, building apartment housing in popular neighborhoods. Single-family home construction is taking a backseat to these types of developments as well as multi-family condo and townhome construction also in the city of New 
Orleans. Because of this, people relocating to the New Orleans area as well as young people graduating from college and moving out are finding it harder and harder to find the traditional “first time home buyer home.”
Surprisingly, Millenials, according to the National Association of Home Builders, tend to want to live in single-family homes in the suburbs. According to the NAHB’s survey, 75% want traditional new homes, and 66% prefer to live in the suburbs with only 10% choosing urban living, such as living in downtown New Orleans or the outlying areas. While nationally this is a trend, the migration of Millenials may very well benefit the Northshore of the lake because in St. Tammany Parish, there are plenty of new homes for sale as well as lots for sale.
Since the Recession, home pricing has been somewhat unreliable, but now housing prices seem to have stabilized, so it is less difficult to acquire housing finance for new home buyers looking to buy their first, second, or even third 
home. Another factor that may drive new home buyers to the north shore is the fact that inventory in popular, safe neighborhoods in New Orleans such as the Garden District, Bywater, Uptown, etc., is very scarce, prompting bidding wars among home buyers. Young home buyers may get priced out of the market with competitive pricing being higher than normal.
Regardless of where the Millenials in the Greater New Orleans area choose to buy their new, single-family home, Bedico Creek Preserve is “ready” for any type of home buyer with 10 Neighborhoods from which to choose new homes for sale and lots for sale. Lot pricing at Bedico Creek starts in the $40’s, and new home prices start in the $240’s. If you are ready to view a lot for sale or new home for sale, Contact Bedico Creek at 985-845-4200 or E-mail Info@LiveBedico.com.
Just like summer here in New Orleans, July’s housing market was hot! The new home sales activity is on its way back to normal with annual home sales already reaching 507,000. The Census Bureau and HUD reports that newly built home sales rose 5.4% from June of this year and 25.8% from July of last year. New home inventories were reported at 218,000 in July which is the highest level that have been seen in over five years.
This increase can also be seen in private residential construction spending where the high was at an annual rate of $387 billion in July. This solidifies the continuing economic growth in the construction industry. Single-family homes have pushed construction expansion 15.8% on a year-over-year basis and multifamily new home construction spending is 21.2% higher than it was reported a year ago.
Developers are not the only ones that are seeing a positive growth, the National Association of Realtors (NAR) reports increase in existing home sales. Existing home sales increased in July 0.5% from June and 7.4% from July of last year. Completed sales (closings) were reported at the highest since February 2007.
The confidence for home buyers stems from the strengthening economy. The Bureau of Economic Analysis reports that the global economic developments (GDP) growth is at a strong 3.7% rate. These findings were based on several factors including investment, faster growth for consumption, government spending and trade components.
Now is the time for buyers buying new homes or existing homes to tap into the housing market. Sales are solid which makes the real estate market a stable venture. New home prices are continuing to strengthen making real estate a great investment.
Builders and buyers alike are optimistic that the recovery of the real estate market nationwide is here to stay as new home sales increased 18% year-over-year in June, 2015 compared to 2014, and new home inventory also increased by 3.4%. Builders are discovering that bank construction loans are easing slightly on credit requirements and equity, and also with the increasing number of new home sales, builders are “turning over” the new homes that they are building so they are freeing up capital to invest in new lots for sale in traditional as well as master planned developments.
However, all of the great news regarding the real estate market was tempered by a slight drop in sales from May to June, 2015, for a total drop of 6.8%, down from 517,000 in may to 482,000 in June. However, the summer months sometimes experience a lag because of school getting out, and potential home buyers going on vacation in the early part of the summer. Overall, new home sales have been increasing both incrementally and expotentially since 2012.
Good news for builders is that there is an increasing demand from new home buyers for homes to purchase. This demand has not tapered off or decreased since the housing market started its recovery. This trend has especially been noticed in the new, master planned community of Bedico Creek Preserve in St. Tammany Parish which features 11 Neighborhoods of new homes for sale, lots for sale, and new homes under construction. Buyers living on the 
Northshore already find that this new home community is convenient to the cities of Mandeville, Madisonville, Covington, and Abita Springs in West St. Tammany Parish.
New lots are constantly being developed as new neighborhoods within the subdivision are opening with available lots for those new home buyers interested in building their own custom home. There is no shortage of new homes to buy and new lots to buy at Bedico Creek in the Greater New Orleans area. Contact Bedico Creek to schedule a tour of this Conservation Community by calling 985-845-4200 or E-mailing Info@LiveBedico.com.
