Wall St. Crunches Numbers,
Joins New Orleans Homeowners
New Orleans property owners, whether they are single homeowners
or large institutions holding multiple rental properties, are members of the
same club—at least by one definition. They are all real estate investors, even
though not all of them are the kind of New Orleans property
owners who keep an eagle eye trained on
the value of their real estate investment portfolio (most of us think of it
more as just “home”). Unless they plan to sell sometime soon, today’s asset value,
book value, or whatever financial term you are looking at, is pretty much an abstract
notion. It only becomes significant in the real world if you set your sights on
selling.
Even so, New Orleans property owners may be interested to
learn that the past few years’ steady rise in property values nationwide has
created the kind of investment opportunity that even Wall Street hasn’t been
able to ignore.
Recently there was a conference in ritzy Scottsdale,
Arizona, that illustrated the point. It was called the 2013 REO-to-Rental Forum. In their final MarketPulse newsletter of the year, trend-watcher Corelogic observed,
“The fact that there are now conferences
for single-family residential institutional investors speaks volumes about the
increasing maturity of this new investment asset class.”
If you are
a New Orleans property holder, that’s
welcome news. It indicates a number of positive things about the current state
of the overall market, and the value of your own property. As CoreLogic points
out, although investing in residential real estate is nothing new, what is new is the aggregation of large
portfolios of properties under professional management —as well as “the
availability of institutional investor capital to fund their acquisition.”
English translation: the smart money thinks single-family
residences are a good investment.
Toward
the end of the CoreLogic report was the latest year-over-year comparison: 12 ½%
growth in home prices— even including distressed sales. It doesn’t take a Wall
St. wizard to appreciate that kind of growth!
If the coming months will see you looking to sell (or buy) a
New Orleans property, give me a call to discuss the ways I can help you reach
your goal.
Terez Harris NOLA Real Estate Group
(504)297-2619
Keller
Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each
office independently owned and operated. All brokers licensed in the state of
Louisiana.
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