There are several factors that make this a New Orleans Condo buyer’s market. A Buyer’s Market is when the buyer has the upper hand in negotiations and pricing. Many buyers go to the side line when times are uncertain but that is the time when you can actually get some good buys across all price ranges.
Low Interest Rates are a big factor. There is plenty of money to lend to people that have good credit at some very good interest rates. The rates are around 6% which means you will pay $60 for very 10k borrowed. Borrow 100k and your principle and interest is $600 monthly. Rates may continue to fall.
Supply of condos is good meaning you are having the sellers compete for your business. They have to be best in class to sell. Law of supply and demand works well.
Sellers are willing to make deals. The market is not that bad but the media influences sellers decisions making them come to terms more quickly. They can relate falling stock prices that have been cut in half relative to New Orleans real estate values. Many sellers just want to sell at very reasonable prices due to changes in there lifestyles.
Seasonal influences do have an effect. A buyer can always save $5,000 or more by buying in the winter when less people look. This repeats itself over and over again in good and bad markets. Its timing that holds true over my real estate career.
Condo Fees have been very steady and have remained flat since 2007 as the Katrina cost have worked its way thourgh the system. Insurace rates have dropped as associations have gotten better deals in 2008.
Tax credits of $7500 if you have not bought in the last 3 years. Property taxes in New Orleans have dropped 29% in 2007 and continue at that rate today. There is Bond money and other assistance programs in Jefferson Parish.
Sellers are beginning to price aggressively. This is not the case for all sellers but many are beginning to price aggressively. A good buyers agent can help you in this process to know the trends and why things are priced as they area.
Developers Interest rates are going up. Odd thing is their rates are going up while your rates are going down. You may find a developer who has one unit or a few left in a building that he may just want to unload. If you like the units you can get a very good deal on these.
Foreclosures are Rare in the New Orleans Condo Market that I work as most people sell before they get to this point. There be be a few but not many in the places where you would want to live.
There may be other factors as well that you can comment on? They are welcome!
It get harder to buy now but this is when you may get a deal and save money in the long run. It could mean money in your bank and not your landlords pocket. I have friend who has now been renting for $1300 per moth for 6 years for a payout of $93,000 waiting for the right time to purchase. She has nothing to show for it at this point. When is her time? Now may be a great time and it could get better.