Understanding New Orleans property appreciation
Real estate prices are constantly moving up and down.
Over a long enough period of time, house values typically appreciate.
But, of course, in real estate there is always a certain amount of risk.
When your home appreciates you have a greater asset to borrow against, and you'll create a higher profit when you sell.
There are many different reasons why property values in New Orleans change. So, how can you be sure what you're purchasing this year will appreciate over time?
It's imperative that you go with an agent in New Orleans who is familiar with the factors that affect local prices.
Many assume that the economy is the most critical factor affecting real estate appreciation.
It goes without saying that
there are quite a few issues on a national level that change your home's value: unemployment, interest rates, consumer confidence, and more.
However, your home's value and the elements that play the biggest role in its appreciation are particular to the local New Orleans economy and housing market.
Location in a community - Proximity to jobs and schools also have a great impact on almost all home buyers' choices.
So these areas typically appreciate, or hold their value consistently, year to year.
Recent sales - Your REALTOR® should give you information on the recent real estate sales in the areas that you're interested in. You'll want to know average time on market, selling versus listing price and more.
History of appreciation - In the last 5-10 years, have property prices risen or declined? Does location or affordability affect how desirable the neighborhood is believed to be?
Economic factors - Have companies moved into or away from an area? Are local businesses hiring? Is there a nice combination of job types in an area, or does it count on just one industry?
Each of these items plays a part.
It's wise to be informed about the factors that affect your property's financial worth.
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Have any questions? Please feel free to call me at 504.488.4398 or e-mail me