| Forecast: The next 12 months |
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No lame duck President on the verge of a close election is going to jeopardize a potential win over the opposition by condoning an increase in home interest rates. And no new President is going to condone a rate increase during the first year of their first term. Look for mid 6% to low 7% rates over the next 12 months.
The greater New Orleans housing supply remains high and thus your opportunity to “get a good deal” will continue for some time. For example, luxury condos continue to be a bargain. But if you’re thinking about stealing a great home in outstanding condition, in a super location, forget it. Yes, the best homes/condos, will sell below their 2005 level, but not for 25 or 30% below. Desirable property remains just that, desirable. But over-all, prices are definitely lower and this is absolutely one heck of a time to buy the home you really want, or need!
There is a steady trickle of people coming into town, and home sales are far from dead. So, there isn’t going to be an unforeseen and sudden glut on the market that will tank prices even further. We have already seen those big corrections. Though prices will remain relatively low, look for a steadying of prices over the next 12 months.
In short, if you are thinking about buying, you have about a year to play with. Low interest rates and a good supply of quality homes for sale at reasonable prices means that now is the time to make your move.
The ambition of this news letter is to arm you, the real estate buyer and seller, with the necessary tools to make your next real estate transaction, a smart one!
I am at your service.
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| Interest Rates and Credit Cards |
| Mortgages for around 6.5% are available, but the actual rate you receive will be directly affected by your credit rating.
The near collapse of Ginnie Mae and Freddie Mac has caused a trend that will see these institutions going back to basics, and, as a result, local loan providers will be much tighter with loan criteria.
As always, look for hidden costs from lenders, they can make what looks to be a low rate vanish in a heartbeat. Shop around, ask a lot of questions, and find the real bottom line.
Remember, if you are looking for a mortgage, be cool with credit. Delay big ticket credit purchases or obtaining another card until after you have closed on your house!
The issue of loan failures is far from over. The next problem area may well come from credit cards. Millions of pre-approved cards have been mailed to individuals with questionable credit worthiness. Others are cash poor and suffering from a tough economy, job loss, and rising prices. There are economically hard hit areas like the post Katrina Gulf South and other disaster struck zones like the flooded out mid-west. This means credit cards are being abused.
Added together this spells trouble for loan organizations; they will have to return to fundamentals and tighten up their act. Credit hasn’t been this important since the S & L crash of years ago.
Recent SalesAll Information Approximate
Garden Dist: 2915 Camp. 3 bd, 3.5 ba, 2714 sf, list 695K sold 620K, 2 mo to sell. 1133 Fourth. 4 bd, 3.5 ba, 4200 sf, list 740K sold 636K. 9 mo to sell.
Uptown: 1923 Calhoun. 3 bd, 2 ba, 2308 sf, list 595K sold 585K. 2 mo to sell. 1721 Joseph. 3 bd, 2 ba, 2273 sf, list 525K sold 525K. 2 mo to sell.
University/Carrollton: 1323 Fern 2bd, 2 ba, 1687 sf. list 349,900K sold 294K. 4 mo to sell. Mid-City: 3249 Desoto. 3 bd, 2 ba, 2045 sf. list 379K sold 320K. 14 mo to sell. 1216 N. Galvez. 3 bd, 2 ba. 2694 sf. list 360 sold 293,500K 4 yrs to sell.
River Ridge: 720 Park Ridge. 3 bd, 2 ba, 1350 sf. list 224,9K sold 206,5K. 7 mo to sell. 9417 Dante. 3 bd 2 ba, 1300 sf. list 249,9K sold 208K. 6 mo to sell.
Metairie: 417 Metairie Lawn Dr. 4 bd, 2.5 ba, 3000 sf. list 585K sold 435K. 2 yrs to sell. 316 Lake Ave. (Old Met) 3 bd, 2 ba, 1633 sf. list 349K sold 300K. 3 mo to sell.
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