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The Texas Housing Market: Insights on Energy Efficiency and Home Buying Challenges
Published on Aug 30, 2024
The Texas housing market is a dynamic and often challenging environment, especially for those new to its complexities. With rapid changes in interest rates, the growing importance of energy efficiency, and logistical hurdles in new developments, navigating this market requires a keen understanding of both current trends and long-term implications.
Marianne Scarborough, Director of Sales for Newmark Homes in Houston, recently shared her valuable insights on these topics. In this interview, she offers insight on the following topics:
- Current state of the housing market in Texas
- The importance of energy efficiency
- The primary challenges homebuyers face today
The Expert: Marianne Scarborough
Marianne Scarborough has been a key figure in the Houston housing market for over a decade. As the Director of Sales for Newmark Homes Houston, she leads a team of 26 dedicated sales professionals, ensuring they are equipped with the knowledge and tools necessary to excel in selling dream homes in Texas.
Her journey in the industry began in 2005, where she initially worked as a loan officer. However, her passion for people and communication soon drew her to a career in home sales—a field where she could make a direct impact on families’ lives.
Throughout her career, Scarborough has gained experience with several well-known builders, including David Weekley Homes and Taylor Morrison. Each of these roles helped her hone her expertise in understanding what buyers need and how to effectively meet those needs. For the past seven years, Scarborough has been an integral part of Newmark Homes, where she has played a significant role in shaping the company’s approach to sales, particularly in the areas of customization and energy efficiency.
Energy Efficiency in Today’s New Homes
In today’s market, energy efficiency is becoming increasingly important to home buyers. Higher interest rates and home prices have made cost savings a priority, and many buyers are now looking at long-term efficiency as a way to reduce their overall expenses. Scarborough emphasized that while energy efficiency might not always be the first thing buyers think about, it is certainly something that sets certain homes apart from the competition.
Homebuilders that prioritize innovative technology should be a strong focus for Texans looking for a home. One example involves the use of open-cell spray foam insulation for full encapsulation, ensuring a well-sealed and insulated home. Unlike traditional batt insulation, which can lose effectiveness over time, spray foam insulation maintains its performance, offering enduring energy savings. Some builders are still using batt insulation, while Newmark proudly uses spray foam.
Great prospective homes are complemented by other energy-efficient features, such as high-efficiency dual-stage air conditioning systems, tankless water heaters, and advanced programmable thermostats. Many builders offer these features to contribute to significantly lower energy consumption, which not only benefits the environment but also helps homeowners save on utility bills.
But how do we know that these efficiency claims and devices from homebuilders are legit? Normally, these benefits are backed by a third-party inspector. Scarborough says, “All our homes are rated by certified third-party inspectors because we need someone to do it; it's checks and balances for us, and it's peace of mind for our customers."
Partnerships with energy management companies like Energy Ogre further enhance commitment to energy efficiency. Through collaboration, builders like Newmark provide customers with detailed projections of their home’s energy usage, allowing them to make informed decisions and budget accordingly. This level of transparency is rare in the industry and has helped build a strong reputation for trustworthiness and customer satisfaction.
Consumers can experience significant savings when they buy a house that features innovative and energy efficient technology.
Challenges in the Texas Housing Market
One of the biggest challenges, according to Scarborough, is the volatility of interest rates. Fluctuating rates can drastically affect a buyer’s purchasing power, often forcing them to reconsider their options or settle for smaller homes than originally planned.
This unpredictability creates additional stress during the homebuying process, as even a minor increase in interest rates can disqualify a buyer from securing a mortgage. Scarborough also highlighted another significant challenge that has become more prevalent in recent years—delays in establishing power in new communities.
Without power, builders are unable to complete essential stages of construction, such as installing wood flooring or air conditioning systems. Delays not only prolong the timeline for closing on a home but can also have severe financial consequences for buyers.
“One day you qualify for a home, and by the end of the build process, you no longer qualify because the rate has gone up,” Scarborough says. “So the requirements have changed for how much down payment money you need or the required debt-to-income ratio. Just a small percentage of an interest rate can really affect your buying power.”
Potential Policy Improvements
To address these challenges, Scarborough suggests that policymakers could implement regulations to expedite the timeline for utility companies like CenterPoint Energy to provide power to new developments. Faster power setup would allow builders to complete homes on schedule, reducing the risk of buyers losing their homes due to rising interest rates.
Additionally, any efforts to stabilize or lower interest rates would greatly benefit those trying to enter the housing market, making homeownership more accessible and sustainable.
Conclusion
Scarborough’s insights offer a valuable perspective on the Texas housing market. Her extensive experience and deep understanding of the industry highlight the importance of energy efficiency, the challenges posed by fluctuating interest rates, and the critical need for timely utility services in new developments.
As the housing market continues to evolve, the practices and policies that prioritize both sustainability and affordability will be essential in helping buyers achieve their dream of homeownership in Texas. Newmark Homes, under the guidance of leaders like Scarborough, is well-positioned to meet these challenges and continue delivering high-quality, energy-efficient homes to the market.
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