How Hurricane Katrina Affected New Orleans Real Estate?
The city of New Orleans and many surrounding areas was devastated by
Hurricane Katrina. The high winds and rains flooded many of the homes
that were in the area. In the beginning, the hurricane certainly had a
huge negative affect on New Orleans real estate. But as the city
is being rebuilt many people begin to return to the place they once knew
as their home, this makes New Orleans real estate a profitable place for
investors.
After the hurricane, the average home price for New Orleans real estate
is approximately $175,000 which is almost $50,000 less than the national
average of $216,000. As a result, New Orleans real estate is a primary
choice for investors now due to the relatively low home prices. In
addition, New Orleans real estate has experienced a growth of over 20%
in recent months. This growth will continue as people begin to return to
the area to begin their lives. Should prices continue to increase at or
above the current growth rate, the average home price New Orleans real
estate will be about $250,000 in the next six months. This will net a
gain of $75,000 for an investor who invests now.
To gain from selling your New Orleans real estate property is to first
determine the right price by looking at similar homes that has sold
recently in the same area. This will help you to determine the price for
your home once you are ready to put it on the market. Pricing too high
will deter buyers from buying your home. The longer property is on the
market the less attractive it is going to be to potential buyers.
Investors in New Orleans real estate should always strive to sell
properties within two or three weeks of putting it on the market.
While many investors would shy away from New Orleans real estate as it
could be risky for another potential devastation. Even without the
backlash from the recent hurricane damage, the city of New Orleans would
still serve as an attraction for new permanent residents. If every cloud
truly has a silver lining, the lining of this one was surely in favor of
investors looking to invest in New Orleans real estate.
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