New Orleans’ Housing Market Is Booming Making It Hard for First-Time Homebuyers

 

Across the United States, home prices are on the rise still and inventory is still behind. In New Orleans, this is no different as the lack of inventory and high home prices still remain.

Late spring of 2020 the COVID-19 pandemic changed the home market. Sellers were scared to put their homes on the market because of the economic threat the pandemic had put on the nation. Still 16 months into the pandemic and sellers are still wary about listing their homes on the market.

Although the inventory is down, buyers are still out there. Many want to purchase a larger home because of the need for space. Labor shortages have brought on sign-on bonuses and incentives meaning there are more people that can afford a new home.

Around the New Orleans area, the median house price was up 17% in June 2021 compared to the first of 2021. As for the inventory in the Big Easy, there was a 45% decline in listings compared to that of June 2020. Home sales reflected a 12% jump in June 2021. Bidding wars have become the norm and buyers are being very competitive with their offers.

First-time homebuyers in the New Orleans area are having a much harder time finding a home to purchase. The rising home prices and the bidding wars make it nearly impossible. Areas such as St. John the Baptist Parish saw a median home price of $150,000 before the pandemic but in June 2021 the median home price had risen to $205,000.

According to a report by Reinvestment Fund, a public policy consultant, the home prices in New Orleans rose 12% from 2018 to 2020. The average home price across New Orleans rose the same time to $224,600. In some areas such as New Orleans East, the Lower 9th Ward and Algiers the prices close to tripled over the same time period.

"In the greater metro area, new-build houses are going to start in the $250,000-to-$275,000 range, and that is going to be supercompetitive," he said. "So, people in the affordable categories don’t get a shot at those properties, even if they can get together the financing with the help of government said Michael Merideth, CEO of VPG Construction. programs, because market-rate builders are going to go with regular buyers who can close in under 45 days."

"There is a lack of supply of affordable housing, and it is decades from being met if states and communities don't start building" houses that can be afforded by people of lower and moderate incomes, Deborah La Franchi, managing principal of American South Fund Management said.

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U.S. Regions Sees April Single-Family Permit on the Rise

 

The housing market is still booming, the first four months of 2021 the total number of single-family permits that were issued year-to-date among the country rose to 384,196. This makes a 35.6% increase over April 2020's number.

Year-to-date ending April 2021 there was an increase in all U.S. regions in single-family permits. The Midwest had the highest at 49.8%, the Northeast 48.6%, the West 37.7% and the South 30.9%. Multifamily permits were also very healthy. The highest in the Northeast with 45.8%, South 27.7%, West 34.4% and the Midwest 18.4%.

Within the 50 states and the District of Columbia, the increase from April 2020 YTD and April 2021 YTD in single-family permits were seen across the board. The highest rate came in at 332.1% in the District of Columbia. The jump was from 28 single-family permits in April 2020 to 121 single-family permits in April 2021. The ten highest states combined made up 62% of the total single-family permits issued were Alaska, South Dakota, Pennsylvania, Michigan, Minnesota, Vermont, Maine, New York, Wyoming and Utah.

The top 10 local metro areas in both single-family permits and multifamily permits were different. Single-family permits were the highest in Houston, Tx, Dallas-Fort Worth-Arlington, Tx, Phoenix-Mesa-Scottsdale, Az, Atlanta-Sandy Springs-Roswell, Ga, Austin-Round Rock, Tx, Tampa-St. Petersburg-Clearwater, Fl, Charlotte-Concord-Gastonia, Nc-Sc, Nashville-Davidson-Murfreesboro-Franklin, Tn, Orlando-Kissimmee-Sanford, Fl and Jacksonville, Fl. Multifamily permits were the highest in New York-Newark-Jersey City, Ny-Nj-Pa, Austin-Round Rock, Tx, Dallas-Forth Work-Arlington, Tx, Los Angeles-Long Beach-Anaheim, Ca, Seattle-Tacoma-Bellevue, Wa, Washington-Arlington-Alexandria, Dc-Va-Md-Wv, Philadelphia-Camden-Wilmington, Pa-Nj-De-Md, Minneapolis-St. Paul-Bloomington, Mn-Wi, Houston-The Woodlands-Sugar Land, Tx and Denver-Aurora-Lakewood, Co.

Now is a great time to purchase a home. If you are in the market for a new home, contact a local Realtor today.

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Riverfront Hotel Planned for New Orleans Convention Center Will Still Happen

The Ernest N. Morial Convention Center has chosen AECOM-Broadmoor to oversee their $557 million project to upgrade the complex. This is the first upgrade project since the convention center was constructed in 1984. The center has already tapped into the budget and spent $115 million on updates through the linear park which runs along the 11 blocks in front of the complex.

"We’re looking forward to digging into this project, collaborating with the entire community of trades and professionals involved to create a highly functional, beautiful, 21st century Morial Convention Center for everyone who visits it," said AECOM-Broadmoor's spokesperson Amy Ferguson.

Now the once cancelled hotel that was part of the project has been restored. Texas-based Matthews Southwest will take on the 500-room hotel. The hotel is just part of the new additions at the upriver end of the Convention Center. The multi-acre area will include retail, residential and an entertainment district.

The new hotel will include 13-stories along with a 28,000 square-foot festival deck that looks out onto the river. The hotel will sit on the South Front Street side and be connected to the Convention Center. The elevated pedestrian walkway that connects the hotel to the center will include restaurants and retailers.

This is great news for the city of New Orleans as its convention center is the only one in the country that does not have an attached hotel. The new project will definitely help New Orleans compete for event business with other convention centers throughout the country.

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Biden Administration To Cut Payments on Government-Backed Loans

The COVID-19 pandemic has hurt our economy and the well-being of our country tremendously. July 2021 the administration announced that there will be new loan modification options for those who have government-backed home loans. Biden's administration wants to give borrowers the opportunity to catch up or keep paying their mortgage payments due to the struggles the pandemic has caused.

The Federal Housing Administration (FHA) insured mortgages will be eligible to receive up to a 25% reduction on their principal and interest. You do have to be impacted by COVID-19 in order to receive help. In exchange, borrowers will have the life of their loan extended in order to be able to make lower monthly payments.

Those who have a loan back from the Department of Agriculture will receive up to a 20% reduction on their principal and interest. Ways borrowers can do this is to have an interest rate reduction, term extension and a mortgage recovery advance. Again, borrowers will need to be reviewed to make sure they qualify.

For VA loans there is a new COVID-19 Refund Modification which will have many tools that can help borrowers to obtain up to a 20% savings on their monthly principal and interest.

If you are in the market for a home, now is a good time to purchase. Find a professional Realtor in your area. For more information on any relief, assistance visit consumerfinance.gov/housing.

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A Dozen Must Haves For Today's Buyers

By now everyone has reshaped the way they see a home. The COVID pandemic pushed city dwellers to the suburbs and prices took a sharp turn up with the supply and demand. One thing that has not changed is location. Zillow reports that buyers look for a safe neighborhood, walkable neighborhood, close to shopping, short commute to school and work, sense of community, close to friends and family and preferred school district. Here are the top 12 amenities buyers are still looking for.

1. Updated Kitchens and Baths

These two areas of a home are where homeowners spend a lot of time. In a survey conducted by the Metropolitan Regional Information Systems Inc., 81% of those who were surveyed said that updated kitchens and bathrooms were the most important feature in a home. That means that the majority of buyers who are looking for a home will make a decision based on the kitchen and bathroom conditions.

2. Open Floor Plans

Especially after the stay-at-home orders, an open floor plan is a must-have feature. Open floor plans are less confining and are more versatile. Now that we can all get together again, an open floorplan is great for entertaining because it allows for mingling and a great party flow. If a homeowner is still working from home, an open floor plan can allow for a great space to create a temporary workspace.

3. Air Conditioning

Every region in the county has some sort of change of season whether you live in a warm climate or cold climate. Central systems are a great way to keep your home at a comfortable temperature. Air conditioning is a great way to maintain humidity in your home's environment.

4. Energy Efficiency

Over the last several years this has become a very important feature in a home. As they say,  the green movement is here to stay. Buyers are looking for homes with energy-efficient windows, insulation, heating systems or solar panels. These are a few features that can help with not only your energy cost but with the planet as well.

5. Low Maintenance Features

Low maintenance and energy efficiency complement one another. These features keep the cost down on a home, especially for a first-time home buyer who is having a hard enough time coming up with a down payment. Every penny counts!

6. Technology

New York City is a place that is very technically savvy but when it comes to living there, people are moving out because of the poor Wi-Fi connections and good cell service. Buyers are looking for more tech-friendly homes nowadays. A strong dependable Wi-Fi connection and good cell service are a must.

7. Curb Appeal

A buyer's first impression is when they drive up to a home. The wow factor has to be there to catch their attention. A good way to accentuate the curb appeal of your home is to add plants, a new front door, new stonework, a new portico or outdoor lighting. You want to do everything you can to enhance your home from the view of the street.

8. Bringing the Outdoors In

Buyers want to be able to enjoy nature and have outdoor spaces. During the pandemic being stuck at home meant you had to have a space outdoors to be able to get outside every once in a while. Buyers are looking for porches where they can sit and eat or have a cocktail party. Stone patios with outdoor kitchens and outdoor furniture have become very popular.

9. Laundry Rooms

Laundry is always piling up, especially with busy lives. A laundry room is a great addition because you can close the door and hide your dirty laundry so to speak. In this day in age, it is very rare anyone has time to do the laundry every day so a place to store it is a must. A laundry room closer to the bedrooms is a plus.

10. Garage Area That Can Work as Storage

Buyers are always looking for storage space. If you have storage space in the garage, this is a bonus. Houses can get cluttered very quickly so having a place in the garage to store items is a very handy must-have.

11. Walk-In Pantry

Most families buy in bulk at stores such as Bj's or Costco, so they need a place to store the large quantities. Buyers want a walk-in pantry. Even if buyers do not shop in bulk, most do not shop on a weekly basis, so they need a place to stock up.

12. General Suitability

A buyer does not want to walk into a house that has bright pink walls in the bedroom or ugly bold colors in the kitchen. Buyers tend to be attracted to homes with neutral coloring, high ceilings for airflow and lots of natural light.

Every home will not fit all a buyer's wants so you will want to prioritize what is most important. A realtor can help you prioritize and negotiate for you when purchasing a home.

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Seven Louisiana Towns To Escape to for a Weekend

 

When Louisianans think of a weekend getaway the Gulf Coast usually comes to mind but there are some perfect getaways throughout the rest of Louisiana. These charming small towns are great places to go for rest and relaxation. Here are seven small towns located in Louisiana that are perfect for nature lovers to main street shoppers.

1. Breaux Bridge

This is a perfect town for those who want to experience some Cajun food and take in some nature. Breaux Bridge has a population of about 8,300 so it is not too small but not too big. There are several local Cajun restaurants to enjoy and the stunning Lake Martin is located here. Nature lovers can spend all weekend exploring Lake Martin.

2. Covington

Located just north of the city of New Orleans, Covington is located in St. Tammany Parish. Downtown Covington has many shops and restaurants to try. On Columbia Street or Lee Lane, you will find local boutiques, antique stores, and restaurants. One of the oldest general stores in Louisiana, H.J. Smith and Sons is located in Covington. This small city has around 10,000 residents but feels like a small town.

3. Ville Platte

Definitely a place for a nature lover who wants a quiet relaxing place to stay. Described as a place to get away from it all where you can rent a waterfront cabin at Chicot State Park. The area offers nature trails, canoeing and the Louisiana State Arboretum. This is a state preservation area which is the first state-supported arboretum in the country.

4. Natchitoches

This is one of the larger cities on the list with around 18,000 residence. The downtown area gives you a small-town feel and is loaded with history. In fact, Natchitoches is the oldest city in Louisiana. For those who love to dive into the culture, the 33-block Historic District is the place to be.

5. St. Francisville

This is known to be a sleepy little Louisiana town but the area has a lot to offer for a weekend getaway. All around the town are rolling hills and beautiful ancient oaks. It is also home to one of the country's most haunted plantations called Myrtles Plantation.

6. Grand Isle

Everyone loves the beach and Grand Isle is a perfect beach getaway. There is 10 miles of public beaches on Louisiana's only inhabited barrier island. Visitors can even spend the night on the beach at Grand Isle State Park.

7. Abbeville

Close to Breaux Bridge, Abbeville is another town that is bigger in size but still has a small-town vibe. This is perfect for nature lovers to shoppers to all the in-between. Palmetto Island State Park is located here which has cabins to rent, RV hookups and primitive campsites.

Louisiana is a great place to both live and vacation. The warm climate makes it a nature lovers' dream and the culture throughout the state is like no other.

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This Years New Orleans Parade of Homes Will Be Both Live and Virtual

 Each year the Home Builders Association of Greater New Orleans (HBAGNO) hosts the Parade of Homes. This is said to be the biggest official showcase of homes and their latest designs and floor plans in the Greater New Orleans area. Patrons who attend the 2021 Parade of Homes can tour homes in person or via 3D virtual tours.

The Parade of Home is a great way to be introduced to the latest in home design and innovations in building construction and industry trends. Learn and get expert advice from locally trusted builders, designers, lenders and real estate professionals. This year these will include adaptable and multi-purpose layouts, cozy vacation living, combined open-air living spaces, lighting and plumbing finishes, and the newest trends for 2021.

The Parade of Homes will include homes in Lakeview, Bucktown, Colonial Club, Metairie, English Turn, Louisiana Trace, Parks of Plaquemines, Gabriel Estates, Shrewsbury, Algiers Point, and Sugar Ridge in Thibodaux. This year there will be a total of 19 homes that can be toured in person or seen virtually via Matterport’s innovative 3D virtual tour technology. This is the latest app for the Parade of Homes. The app includes all the parade of homes and you can do a 360 tour of each room of each home.

“This year’s in-home and 3D virtual Parade offers a variety of homes in neighborhoods that reflect the diverse tastes and budgets of all potential homebuyers in our community,” said Mary Kelly of Ferguson Enterprises and Chair of the 2021 Parade of Homes. “After a year of missing the company of loved ones, working remotely and homeschooling children, home builders are creating plans with additional space for home offices, playrooms, and entertaining. We are excited and proud to once again showcase the work of our area’s most innovative builders, subcontractors, and vendors who provide inspiration while building strong relationships in the communities in which they serve.”

Visitors will be safe as the Parade of Homes will follow the CDC and governmental guidelines. HBAGNO will provide hand sanitizer and will sanitize frequently touched areas throughout the day. Proceeds will help support St. Jude Dream Home this year.

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