NAHB Spring Construction Webinar Forecasts Strong Housing Growth
When comparing statistics in housing trends, the National Association of Home Builders place Louisiana in the top tier of states leading housing recovery nationwide. The top states include Montana, North Dakota, and Utah, and the 2nd tier of states include Texas, Oklahoma, Louisiana, and Alaska. There are several factors that contribute to Louisiana’s (and other states’) housing recovery. Some states, such as the top 3 states of Montana, North Dakota, and Utah did not have as big of housing bubbles as other states. Therefore, their “fall” during the Recession was not as great, so their housing recovery was faster and better. States like Texas and Louisiana are mainly energy sector states, so the Recession did not cut as deeply into employment and statewide income as other states. Baton Rouge, Louisiana, has consistently held one of the highest rankings in housing recovery since the beginning of 2015 which helps with Louisiana’s housing statistics.
“The basic principle remains the same,” said NAHB Senior Economist Robert Denk. “A strong economy – whether helped, hindered or unaffected by the energy economy – will be a key factor driving housing recoveries going forward.”
Economists predict that by the end of 2017, the top tier states will have a housing recovery of 102% of normal (based on statistics pulled of the housing numbers during the last “normal” housing market pre-Recession). The bottom tier states will have recovered to just 65% of where they were before the Recession. The reason for the predicted recovery numbers in 2017 is based on the underlying housing market fundamentals of population and job growth which are typical in driving supply and demand in real estate. The cycles of “boom and bust” are mostly over according to Denk.
“A common theme has emerged,” said Denk. “The progress of market recovery is no longer a function of the boom-and-bust cycle marked by price bubbles, excess supply and foreclosures. The key driver of the housing recovery is now back to the underlying housing market fundamentals of population and job growth.”
Factors that will help builders and sellers to sell their new homes for sale and homes for sale are a predicted increase in household formation by home buyers that were previously unable to secure a mortgage, stabilized home pricing that now offers tiers of homes for sale available and affordable to purchase, less foreclosures, rising employment and the first increase in wages in over 8 years, and home prices that are in line with incomes and rents making it an easier transition from renting to owning.
If you are a new home buyer who is interested in building your own custom, dream home in West St. Tammany Parish, Ron Lee Homes in Covington, Louisiana, offers full-service home building strategies such as custom home design, engineered floorplans, complete “end-to-end” home construction supervised by Ron Lee, financing and insurance assistance, and a hands-on approach to building new, custom homes in the Greater New Orleans area. For More Information, Call 985-626-7619 or E-mail Info@RonLeeHomes.com.