Looking for a Newly Constructed Home? You Have Good Timing

After several years of a frenzied housing market characterized by many more home buyers than sellers, builders may finally be taking note.

The number of newly constructed homes for sale and sold shot up 6.2 from September to October, according to the seasonally adjusted numbers in a joint report by the U.S. Census Bureau and U.S. Department of Housing and Urban Development. They jumped 18.7% annually.

“It’s pretty good news. Sales are up pretty strong,” says Chief Economist Danielle Hale of realtor.com®. “Homeowners can potentially trade up to a new home and put their current home up for sale. That would increase the number of existing homes for sale.”

That’s a boon for first-time buyers and other wannabe home buyers on a budget. Existing homes, i.e., those that have previously been lived in, are usually less expensive than newly built abodes.

For example, new homes are about 26.6% more costly, at $312,800, than existing homes, at a median $247,000, according to the most recent National Association of Realtors® report.

Monthly median new home prices dipped a little, by about 3.7, hitting $312,800 in October. But that’s up 3.3% from the same month a year ago.

The number of more affordable residences under $200,000 stayed steady, at just about 13 of all of the new construction, according to the report. The bulk of the new abodes, 53, were between $200,000 and $399,999. About 17 were between $400,000 and $499,999 and 17 were also a cool $500,000 and up.

The biggest increase in the number of new homes on the market were in the Northeast, where they jumped 30.2 month-over-month and 64.7 year-over-year. That was followed by the Midwest, which saw a 17.9% monthly rise and a 16.2% annual increase.

Next up was the West, which experienced a 6.4% monthly bump and 20.1% surge from October 2016, and the South, where the number of new homes went up 1.3% month-over-month and 14 year-over-year. The South was likely hampered by Hurricanes Harvey and Irma, which temporarily halted construction.

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Fannie Mae expected to soon introduce new construction loan program

Mortgage giant Fannie Mae could be on the verge of introducing a pilot program to change the way it buys residential construction loans.

The GSE could implement these programs in order to help with the lack of affordable homes available for sale, according to an article by Joe Light for Bloomberg.

Fannie Mae could now be looking at moving up the sale of the construction loan, in order to finalize the sale, according to the article.

From the article:

For its first pilot program, Fannie is trying to eliminate some of the hurdles borrowers face in constructing a home. Typically, if a borrower hires a builder, he or she gets a temporary loan from a bank. When the home is complete, the bank or another lender can then refinance the loan into a mortgage.

Lenders can also make a mortgage with the intention of selling it to Fannie, but they aren’t able to do so until the home is finished. Lenders don’t always want to take that risk with new construction because it can force them to hold a loan on their own books for months.

Under the new program, Fannie Mae would buy the loan on the first day of construction, possibly making the loan easier to get and cheaper. The borrower wouldn’t begin making payments until after they moved into the home.

Land Gorilla, a construction loan management software company, explained this could bring major change to the construction lending industry.

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How to Incorporate Orange in Your Future Projects

Everyone knows orange is the color of Halloween, but most don’t know that the bright color can be used throughout your home as well. Whether its a large part of a project like an accent wall or a smaller part like a color within your backsplash choice, the warm color can bring something extra to your newly remodeled kitchen, bath, or room. Check out these tips on how to incorporate more orange into your future projects.

  • Orange is an energetic color that gives a sensation of heat. It inspires the appetite and represents joy, enthusiasm and creativity. Orange is best used in rooms where you want to communicate these concepts.
  • If you’re curious about orange but not quite sure if it’s right for your home, start with a small splash of color for one wall or a few vibrant accessories.
  • Use orange with neutrals to add warmth and interest to your color palette. Orange adds energy to grays and earth tones.
  • Orange can act as a bold visual anchor in a room. In vibrant eclectic kitchens, pops of orange add depth and help to define the space.

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