Reports have shown that inflation might have already peaked. This has caused the mortgage rates to start to fall back towards 5%. The week ending in August 18th showed 30-year fixed-rate mortgage at an average of 5.13% according to Freddie Mac. The week prior was an average 5.22% and the year prior the 30-year was 2.86%.

“Inflation appears to be beyond its peak, which has stopped the rapid increase in mortgage rates that the housing market was experiencing earlier this year,” said Sam Khater, Freddie Mac’s chief economist.

The higher mortgage rates hurt the housing market this summer which rose to a high of 5.81% in mid-June. Sales dropped on home sales for both new homes and existing homes causing a dip in mortgage applications. The last week in August 2022 mortgage applications were at their lowest levels since 2000.

“The market continues to absorb the cumulative impact of the large price and rate increases that led to a plunge in affordability,” said Khater. “As a result, over the rest of the year purchase demand likely will continue to drag, supply will modestly increase, and home price growth will decelerate.”

“Home purchase applications continued to be held down by rapidly drying up demand, as high mortgage rates, challenging affordability, and a gloomier outlook of the economy kept buyers on the sidelines,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.

If home prices slow in increasing and mortgage rates lower, then hopefully the housing market will bounce back. This hopefully will ring true as a year ago a a buyer could purchase a $390,000 home with 20% down on a 30 year-fixed rate mortgage and have a monthly payment of around $1,292. This same home today will cost a home buyer around $1,700 a month which is around $408 more each month.

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U.S. Regions Sees April Single-Family Permit on the Rise

 

The housing market is still booming, the first four months of 2021 the total number of single-family permits that were issued year-to-date among the country rose to 384,196. This makes a 35.6% increase over April 2020's number.

Year-to-date ending April 2021 there was an increase in all U.S. regions in single-family permits. The Midwest had the highest at 49.8%, the Northeast 48.6%, the West 37.7% and the South 30.9%. Multifamily permits were also very healthy. The highest in the Northeast with 45.8%, South 27.7%, West 34.4% and the Midwest 18.4%.

Within the 50 states and the District of Columbia, the increase from April 2020 YTD and April 2021 YTD in single-family permits were seen across the board. The highest rate came in at 332.1% in the District of Columbia. The jump was from 28 single-family permits in April 2020 to 121 single-family permits in April 2021. The ten highest states combined made up 62% of the total single-family permits issued were Alaska, South Dakota, Pennsylvania, Michigan, Minnesota, Vermont, Maine, New York, Wyoming and Utah.

The top 10 local metro areas in both single-family permits and multifamily permits were different. Single-family permits were the highest in Houston, Tx, Dallas-Fort Worth-Arlington, Tx, Phoenix-Mesa-Scottsdale, Az, Atlanta-Sandy Springs-Roswell, Ga, Austin-Round Rock, Tx, Tampa-St. Petersburg-Clearwater, Fl, Charlotte-Concord-Gastonia, Nc-Sc, Nashville-Davidson-Murfreesboro-Franklin, Tn, Orlando-Kissimmee-Sanford, Fl and Jacksonville, Fl. Multifamily permits were the highest in New York-Newark-Jersey City, Ny-Nj-Pa, Austin-Round Rock, Tx, Dallas-Forth Work-Arlington, Tx, Los Angeles-Long Beach-Anaheim, Ca, Seattle-Tacoma-Bellevue, Wa, Washington-Arlington-Alexandria, Dc-Va-Md-Wv, Philadelphia-Camden-Wilmington, Pa-Nj-De-Md, Minneapolis-St. Paul-Bloomington, Mn-Wi, Houston-The Woodlands-Sugar Land, Tx and Denver-Aurora-Lakewood, Co.

Now is a great time to purchase a home. If you are in the market for a new home, contact a local Realtor today.

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formation.

Algiers Point Real Estate Changes in the Last Few Years

 Algiers Point is the second oldest neighborhood in the City of New Orleans. Known as the Point by locals, this area of New Orleans offers affordable housing. It is a quiet and quaint neighborhood with the small-town charm just a ferry ride away from downtown.

Algiers Point is across the Mississippi River from downtown. The Point is known for its beautiful Victorian historic homes. Residents and visitors describe it is like stepping back in time to the 1800s. You can see Victorian double shotgun homes as well as Craftsman shotguns and bungalows.

Algiers Point has seen a drastic increase in real estate activity in the past few years. The median sales price rose from $164,318 to $348,335 between 2012 and 2018 in the U.S. In Algiers, there has been a steady price increase since 2011. In 2018 the median sales price in Algiers was $181,776 which is affordable compared to its neighboring community the Garden District which had a median sales price of $510,584 in 2018.

"For the new folks, it's really just kind of the affordability of the community that makes sense," said Kelsey Foster, head of the Algiers Economic Development Foundation. Once new subdivisions started popping up, "that raised our population, and the average median income. And that immediately changes the calculation for grocery stores, restaurants and retail."

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New Changes in Urban Design and Development

Even though Hurricane Katrina only devastated the Gulf Coast and the Greater New Orleans area, the whole world felt her effect. It has been ten years since the horrendous storm blasted through the Gulf Coast and the lessons learned have become the model for cities around the world as they plan and prepare for severe weather and rising sea levels. In essence that one storm became the catalyst for

new changes in urban design and development around the world.

No one was prepared for the lives lost and communities lost by Katrina. The Urban Land Institute (ULI) realized that this was a wake-up call for all communities in the area of buildings’ resilience to storms. Buildings must be built with every detail looked at when facing the challenge of a major storm. Not only did New Orleans need to have many buildings rebuilt, but they also needed to be built better than before. Part of this process was not only to focus on the buildings themselves but the land and environment around the community. This was done by restoring marshland and wetlands that aid in absorbing floodwaters, building affordable houses with green technology, and using other means of building that do not solely depend on oil and gas.

According to Sarene Marshall, executive director for ULI’s Center for Sustainability, “The result is a city that is more environmentally sustainable, socially cohesive, and economically prosperous, and is as a result attracting new residents, businesses and investors.”

ULI studied other communities around the world who have also been proactive in their storm protection. These cities have focused on resilience and molding their infrastructures to climate

change. Small coastal towns to larger tourist oceanfront resorts have all been affected by the climate change which includes rising sea levels, extreme heat, drought and stronger storm activity. Marshall explained, “As the resilience movement has gained momentum, we are seeing innovative approaches to the planning, design, development, financing, and insuring of real estate.”

The Urban Land Institute (ULI) reported that cities around the world are building for resilience which is not only protecting from bad weather but also improving local and economic growth and quality of life. Resilient design strategies enable a stronger defense against extreme weather which makes communities healthier and more desirable places to live. How are communities doing this? They are taking a holistic approach. Cities are building developments that are walkable and mixed-use which encourage social interactions among neighbors.
 
The public and private sectors are also building community amenities such as parks, trails, and fitness centers which are also being used for neighbors to connect socially and to be used as emergency escape routes during a storm. Homes in these developments are not only able to withstand extreme weather but also reduce energy and water use which can cut utility cost.

ULI’s Marshall backs up this theory stating, “Being resilient means focusing on adaptation and flexibility of space, so that building uses can change over time to 1) meet the new needs and preferences of residents, and 2) be better equipped to withstand environmental and economic stresses.”

The design of a community can prepare it for severe weather. Not every community should be designed the same. There are a couple of factors to consider such as the types of risks faced and the scale of action. An example of this is considering strategies and risks for someone who is building in a flood zone. These could include raising electrical equipment above the first floor and using water resistant materials in lower levels of the home. ULI has a publication called “A Guide for Assessing Climate Change Risk” which will assist in choosing the correct strategies and actions to take when dealing with disasters. Basically it comes down to understanding the risks and tailoring a strategy for a specific community.

Thankfully ULI has been there for New Orleans during the rebuild after Katrina. ULI has provided guidance and assistance to New Orleans’ development industry through their “Resilience Strategies for Communities at Risk” where the relationship between built and human systems is considered when building housing in the Greater New Orleans area developments.

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