Spring signals the traditional start of real estate’s busy
selling season, and while that’s all well and fine, when it comes to making
your own momentous personal real estate decision—whether to buy a home or to sell
your own—trying to decide exactly when
to make the move is easier said than done.
It is true that this year national observers are unusually
unanimous in expecting that last year’s sales upswing will continue. But if you
are deciding whether now is the right time to buy a New Orleans home (or list yours for sale), the reasons behind
the quickening sales activity might be an eye-opener. Here are five of the headline
reasons why so many will decide to buy a home in New Orleans in 2014:
A Third
Cheaper Than Renting
Web giant Trulia’s national averages show that it is still
35% less expensive to own than to rent. In the 100 largest metropolitan areas, even
after mortgage rates rose from 3.75 to 4.50%, the home ownership advantage
continued.
Protection
Against Rising Rents
Renters are finding it more of a hassle even to find an
apartment. In the third quarter of 2013, the U.S. apartment vacancy rate fell
to its lowest level in over a decade (4.2%) even as the average effective rent
in the U.S. rose by 3%, year over year. With supply of rental accommodation
tight and unemployment falling, experts expect even higher rents in 2014.
House
Prices Are Still Relatively Low
Again according to Trulia, house prices are still below benchmark
value levels. In 91% of the largest metropolitan markets, analysts estimate
that homes were 7% undervalued in 2013…and headed up.
It’s
Becoming Easier to Qualify for a Mortgage
As interest rates rise, mortgage lender refinance business
will suffer. Consequently, lenders will need to compete harder for new home
buyers. That’s expected to lead to loosening of lending strictures, effectively
increasing the number of prospective buyers.
House
Prices Are Expected To Rise
House prices increased by 2% in the third quarter of last
year, according to Federal Housing Finance Agency (FHFA) figures. If consensus
predictions hold true, house prices will continue to rise by 3% in 2014….making
sooner rather than later the optimal way to participate in that upward
trajectory.
Whether you are hoping to buy a home in New Orleans this
year or beginning to think it’s time to explore selling, the signs are
certainly there. Call me anytime this week—or drop by the office to chat!
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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