The New Orleans Housing Market is Strong

Author:	Lucas Jones
Source:	Homes Discovered
Date:	April 5, 2006

Four months after Hurricane Katrina The New Orleans real estate market is surprisingly strong despite an otherwise stagnant economy. Homes in many areas of the "Big Easy" are selling at or above pre-storm levels.  Of course this is relatively speaking for the areas that were not devastated by the storm. Only the bravest investors are buying properties in areas that were hit hard by flooding.  In these areas, home sales are down significantly. Surprisingly, there are plenty of buyers.  Some people are looking for investment properties that they can obtain for cheap while others are looking for a new home after their's was destroyed.  Most people are buying in areas that are on high ground and have remained dry even while much of the city was flooded.  Many realtors are seeing record numbers for home sales because all of the business is coming at once. People are buying despite unclear rebuilding plans, weak levees, and no definitive repopulation plan.  People are speculating that, in the coming months, there will be a bidding war for homes in areas that did not flood. Also, suburban areas on high ground will be experiencing a real estate renaissance as people will be searching for housing that can withstand a natural disaster. Currently there is a lack of good homes in the area that can accommodate what people want; homes that have power, have schools, and homes that did not flood. Home prices have remained relatively stable because of a lack of funds in people's pockets.  Many people cannot afford two mortgage payments especially if the second home's price has been inflated. National home builders are also jumping on the bandwagon as KB Homes bought 3,000 acres of land west of the city and plans on building as many as 20,000 homes.  No builder has ever expressed an interest in building in the area like this. In the years to come the residential property market will shift as there will be more of a demand for homes on high ground and in suburban areas.  The population density will shift away from the immediate city of New Orleans. Condo sales are also expected to be up as people look for housing while sorting out their damaged property.  It would be very difficult for some to manage making a mortgage payment on another home while sorting out the details on their destroyed one which is why many will seek to live in condos for the time being.

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