LA Mortgage Market Conditions

By
Real Estate Agent with RE/MAX N.O. Properties

Mortgage Market Conditions in Louisiana

So we all hear about the bad mortgages and foreclosures around the world on the nightly news.  There are always stories about families losing their homes to foreclosure since they are now unable to pay their sub-prime mortgage.  I hear these stories as well, but I wondered why Louisiana has been somewhat sheltered from the worst.   I did a bit of research on our mortgage market and found some helpful info that may explain (at least in part) why we have been able to avoid huge foreclosure numbers.

Based on  a report created by the National Association of Realtors in 2008, these statistics give a snapshot of the mortgage market in Louisiana:

  • 44% of homes are owned free in clear - 32% is the national average
  • Sub-prime exposure is 8% - 9% is the national average
  • Sub-prime loans account for 54% of foreclosures (from NAR in 2008 may have changed)

These stats show that we have much more home ownership without a loan in Louisiana than in other states.  This means that we have less potential for foreclosures since there are fewer houses with loans.  Also, since sub-prime loans account for the majority of foreclosures and we have 11% fewer sub-prime loans than the national average, our exposure is less.

I know that this is not earth-shattering information, but I thought it was interesting at least! There are other reasons as to why we have been insulated from a huge real estate collapse, but the above facts certainly play a role.

Comments (4)

Bob & Leilani Souza
Souza Realty 916.408.5500 - Roseville, CA
Greater Sacramento Area Homes, Land & Investments

Thanks for the Louisiana Mortgage Market Conditions blog post, Darryl...this is my #4 item on a scavenger hunt! :)

Leilani

Oct 29, 2009 09:46 AM
Terri Adams-Scott
J. Rockcliff, REALTORS - Walnut Creek, CA
Realtor, Walnut Creek CA Real Estate

Interesting info for your market and glad you're not hit as hard as we have been in California.

Oct 30, 2009 01:31 AM
Brian Burke
Kenna Real Estate - Lone Tree, CO
Broker & Advising Expert-Denver Luxury Real Estate

I'm joining the fun. Found your post on the Scavenger hunt - :) ~Rita

Oct 30, 2009 05:10 PM
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Darryl- glad to hear that Louisiana is somewhat insulated.  Hope it stays that way!!  Found you when searching for the scavenger hunt.

Oct 31, 2009 07:44 AM