New Orleans Becoming Buyers Market
Prior to Katrina, home sellers in New Orleans were enjoying a market that had homes selling for more than 35% their value. Even post Katrina, a shortage of undamaged housing fed sales and home values. Things looked good for sellers. However, buyers may soon have the upper hand in the New Orleans market.
The classic oversupplied market is hitting the New Orleans area with 7,398 homes for sale in southeastern Louisiana and only 1,262 selling September. Now, realtors are stressing to their sellers the importance of lowering home prices, where appropriate, to remain competitive.
Some local realtors believe that the reason so many properties are not selling is a shortage of buyers. Katrina caused many affluent buyers who typically bought higher-priced homes to move away. However, there is also optimism that the post-Katrina market will begin to stablize and that things may improve for the area in 2007.