That Metairie real estate prices have been on the rise
for a while is certainly one factor that has coaxed some of the more cautious
buyers off the sidelines. It’s made the market a much more lively (and happy!)
place than it was a few years ago—and forecasters are fairly uniform in
predicting continuing growth, though at a less overheated pace.
For those who are even more cautious, the question remains
whether property values and the Metairie real estate prices that reflect them
are likely to hold up over the long haul. They may know that, historically,
homeownership has proven to be one of the most reliable investments, but the
memory of that financial meltdown from a few years back can be hard to get
over…
They may be taking heart from an article I ran across earlier
this
month which is bound to
boost confidence in the future of Metairie’s real estate
prices. It was in a weekday edition (February 4) of The Wall Street Journal. Stretching all the way across the top of
the U.S.
News page was this headline: “Homeowners Acquire a Taste for Remodeling,”
over the subhead “Projects Pick Up, to
the Tune of $130 Billion in 2013, as Property Values and Equity Rebound; Sign
of Market Confidence.”
The article had the expected chart and graph supporting
the Journal’s optimistic takeaway depicting
“Building Momentum.” Too, there was an illuminating quote from Moody’s
Analytics. Moody’s reported an 18% leap in home equity lending—further evidence
of the strong rise in home values (banks lend against equity, after all). That,
WSJ pointed out, is the root of the
steep increase in remodeling activity, because when people have confidence in
underlying values, they decide it is worth investing in upkeep and
improvements.
It’s cause and effect—sort of like a domino chain, but in
reverse. The first domino picks itself up, attracting the second, and suddenly
all the dominos are back upright.
The Journal summed
it up: “If home prices are going up and people have more equity in their home,
things like remodeling and refurbishment will do well, because it’s effectively
the way of playing the reinvestment game.”
For Metairie contractors and tradesmen, this is a game
they’re happy to see resume. And for cautious prospective homeowners who’ve
been watching from the sidelines, it’s a good reason to give me a call. Metairie real estate prices look like they still have a
way to go: there are some great bargains out there!
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.
No comments:
Post a Comment