New Orleans, A buyers Market? People like to Buy High and not Buy Low? Following the herd! Psychology does matter!

 Eric’s Editorial Comments:

     New Orleans Real Estate is  in a buyers market phase when it comes to homes and condos.  The prices are lower since there are fewer buyers.  There are eager sellers that want to make a deal.  Many sellers and developers need to sell and move on.  The Interest rates are really good, anyone who thinks they will not go up next year is crazy.  Many buyers are not in the market due to credit restrictions.  The prices have been rather stable until this past November when real weakness started showing up. Supply and demand with incentives does work !

    Most buyers have opted out of the market because of the psychology of going against the herd is very hard to do.  This makes it a great time for people to buy things cheaper with a lot lower carrying cost.  There are incentives from the sellers, there is an $8,000 Federal tax credit for buying if you have not owned something in three years.  The interest rate deductions are still there which  means much more than people think. Its a government subsidy to become an owner if you pay taxes. 

     The real estate bubble had a lot to do with this feeling of doom.  New Orleans missed the bubble.  Maybe we were smart enough to see through the schemes and irrational behavior by many lenders.  More than likely it was a combination of our conservative nature and the fact that many could not be fleeced because they had little to lose.  In plain English the lenders saw little profit here like the Wild West of California, Arizona, and Nevada.


     Also towards the later stages of the bubble we were facing the aftermath of  Hurricane Katrina.  We did not need foreclosure to move people out of their homes 4-5 and even 10 of water for several week took care of that.   There is also few new homes built in the area that were prime targets of the unsuspecting and or greedy speculators.  There is not a lot of foreclosures like the rest of the country is seeing.  There are very few in areas that I work.

    Could the prices go lower, surely.  Could they stay stable and go up in a coouple of years, sure.   If you are looking at it as a second home, things are easier to rent as more are not buying.  Looking for a primary residence then you can sell for what you paid and still come out ahead in a couple of years.

   This is something to think about as you ponder what to do.  Not many people wanted to buy Wal Mart stock early on but many did later on.  Everyone needs a place to live and they are not making any more.  At least not in the near future.  So now is a good time to begin keeping up with the market to see what deals would come your way.

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Eric Bouler Realtor
Gardner Realtors
Metairie - New Orleans, La. USA