That’s the question on the minds of both buyers and sellers. There was a great, in-depth report on the metro 
area real estate market in a recent issue of the Times-Picayune (Read the entire article here) touting the stabilization of the housing market in the New Orleans area.
…..Ragas and area Realtors believe that the housing market is bottoming out because the backlog of homes for sale is declining and about the same number of home sales closed in the first half of 2009 as in the second half of 2008.
While that may be true when the market is looked at as a whole, it can be misleading for an individual seller who is trying to figure out why their house has not sold.
If you’ve been following along at West Bank Living, you’re already keyed into the market for your area. If not, here is a quick recap for the time frame referenced in the article:
|
Area |
# sales July-Dec 2008 |
# sales Jan-Jun 2009 |
% Change |
| Algiers 70114 (entire zip code) |
55 |
39 |
-29% |
| Algiers Point |
18 |
6 |
-66% |
| Algiers 70131 (excluding English Turn) |
99 |
87 |
-12% |
| English Turn |
11 |
14 |
+27% |
| Belle Chasse |
32 |
31 |
-3% |
| Gretna 70053 |
34 |
37 |
+8.8% |
| Gretna/Terrytown 70056 |
95 |
104 |
+9.5% |
| Harvey |
125 |
100 |
-20% |
| Marrero |
166 |
176 |
+6% |
| Westwego, Avondale, Bridge City 70094 |
68 |
69 |
+1.5% |
| Total West Bank Sales (single family homes only) |
703 |
663 |
-5.7% |
My initial thought was that there is a seasonal difference between the number of home sales in the first half of any year and the second half of the year. But, although April through July are usually the busiest months of the year for home sales, the division between the 2 halves of the year is mostly balanced.
In my opinion, the real answer to the question about market stabilization is “It depends”. Clearly, it depends on the location of your home (right down to the subdivision within a zip code). But it also depends on the condition and price of your home when measured against comparable properties.
“Realtors say that houses on the West Bank of New Orleans suddenly look outdated to potential homebuyers compared with gleaming, newly rebuilt properties in eastern New Orleans, and people are flocking back to the East Bank of the city because they can find better value.”
Advice for sellers
As noted in the article, sellers are competing with homes that had hurricane damage and have now been renovated and updated. If all other things are equal, buyers will choose the updated, ready to move in home over the dated or not-quite-as-nice house 99.9% of the time.
This should serve as a wake up call to sellers to know what your competition is and either bring your house up to snuff or reduce the price to attract the bargain hunters that are sniffing around the edges of the market, waiting for the next great deal.
Having a house hanging out on the market for an extended period of time is not fun for anyone, whether it has stabilized or not.
Advice for buyers
Rarely do buyers have the good fortune of low interest rates combined with lower housing prices. If you are considering buying a home, now really is the time to do it. While getting past the more stringent lending criteria can be a challenge, it will be worth the time and effort invested when you can look around and say “I’m home”.
Related Reading:
Home selling tips
Home buying tips
West Bank real estate market reports
Find a Home:
West Bank homes for sale
Originally published at West Bank Living
Do you have questions about the West Bank real estate market? Are you considering buying or selling a home? The West Bank Living Team provides local, professional real estate services to home buyers and sellers on the West Bank of New Orleans and military personnel relocating to and from NAS JRB New Orleans. It would be our pleasure to assist you with all of your real estate needs.
Comments(0)