New Orleans West Bank Living and Real Estate News: January 2010

City Park's oldest and largest live oaks are located along the vestiges of old Bayou Metairie, a remnant of an ancient distributary of the Mississippi River. The McDonogh estimated at 600 years old, Dueling and Suicide Oaks are among the remnants of this ancient forest that started long before Iberville and Bienville first scouted the area for a site to build the city and port that became New Orleans.

The first thing that we advise a potential home buyer to do before beginning their home search is to determine how much they are qualified for and what price range makes them the most comfortable with their monthly mortgage payment.  Once they have done that, we start narrowing the search based on location, condition and amenities. 

While the old real estate mantra is location, location, location, the primary driver in most home purchases is price, price, price.

Here’s a quick look at the 2009 home sales on the West Bank, broken down by price range:

There are some interesting statistics here when you review 2009 sales, because we are seeing not just a reduction in the overall number of homes sold in the area, but also a shift by buyers into lower price ranges.  Some of this shift may be due to the first time home buyer tax credits that were offered in 2009 and then extended into 2010.  Generally, first time home buyers purchase at or below the average sale price in an area.  In 2009, the West Bank average was a little over $156,000 and homes in the $120,000-$160,000 range made up almost 30% of the annual sales.

The real issue now is inventory.  If you are considering selling your West Bank home in 2010, you may be in for some stiff competition depending on where your home is located and what condition it is in.

Some of these number are just downright disheartening, especially in the over $250,000 range where the number of homes currently for sale exceeds the total number sold in 2009 in that same range. 

What else does this chart tell us?

Buyers have a LOT to choose from in our current market.   If I was in the market for a home priced around $180,000, I would look at homes that were a little above my price range (assuming that the seller is willing to negotiate) and those that cost less than my budget (assuming there might be a bargain to be had). 

With that criteria, there are over 175 homes currently for sale that could potentially be on my list.  Of course, this is before narrowing down to the neighborhoods I like the best, the number of bedrooms I need and the condition of some of the homes.  But, that’s still a big old number and looks like an awful lot of supply when compared to the current demand.

What’s a home seller to do?

Be realistic. Knowing that you are up against a lot of competition means that you must be priced competitively from the moment your house goes on the market.  Do your research and take advantage of all of the information that your agent can provide to help you pin point the right price for your home.

Be flexible.  With the anticipated reduction in the amount of seller assistance allowed by FHA, I expect to see more buyers asking for the maximum amount between now and this summer.  Offset that with the move up tax credit available for homes under contract by April 30th, and you may have a little more wiggle room in your negotiations.  (NOTE: This is not financial advice – check with your tax preparer to determine if you qualify for the move up credit)

For more information about home buying or selling on the West Bank of New Orleans, or relocating to or from NAS JRB New Orleans, please contact the West Bank Living Team.   It would be our pleasure to have the opportunity to assist you with any of your real estate needs and have a little fun while doing it!

In any other part of the country, you’d think I was talking about some pampered pooches.  In New Orleans, a Lucky Dog has a whole other meaning.

The hot dog carts have been a fixture in the French Quarter for as long as I can remember (and was the one craving I had when expecting child #1).   The company has expanded and now will provide carts and servers for company picnics, parties and more.  Fun, but to me they should still be eaten late at night while standing on the sidewalk just off of Bourbon Street….

Visit the Lucky Dog website for more information

For information about living in New Orleans or relocating to or from NAS JRB New Orleans, please contact the West Bank Living Team.  It would be our pleasure to welcome you to our hometown!

This week, David Stevens, the Federal Housing Administration (FHA) Commissioner, announced policy changes to how FHA loans will be handled later this year.  We don’t have specific dates or all of the fine print yet, but here is the gist of the changes:

The upfront Mortgage Insurance Premium (MIP) will be increased from 1.75% to 2.25% of the loan

This cost is typically rolled into a home buyer’s loan, increasing the monthly payment.  The additional half percent MIP charge will result in negligible changes in payment amounts for most borrowers.  This change is expected to go into effect in the spring.

New borrowers will now be required to have a minimum 580 FICO (credit) score in order to take advantage of the 3.5% down payment program

This is change is unlikely to impact very many buyers simply because the majority of lenders have been requiring a minimum 620 FICO for some time now.  If, however, a lender is making loans to borrowers with credit scores of less than 580, the down payment requirement will be increased to 10%.  These changes are expected to be put into place this summer.

A reduction in the allowable amount of seller assistance to FHA borrowers

Currently, the maximum seller contribution towards closing costs and pre-paids is capped by FHA at 6% of the purchase price.  The new guidelines will reduce this amount to 3% of the purchase price.  This change is also expected to be put into place this summer.

Of the three changes, the reduction in the amount of seller assistance is most likely to impact buyers in the New Orleans area.  FHA loans made up 43% of the single family home sales on the West Bank of New Orleans in 2009.  53% of the FHA borrowers received some type of seller assistance with their purchase.  Of buyers receiving seller contributions in 2009, a whopping 64% received in excess of 3%.

Now, this does not mean that none of the sales would have taken place under the new guidelines.  There were many that were just over the 3% threshold that I’m sure would have still closed if the new rules were in place. 

However, there were a substantial number of buyers who appeared to get almost all of the money needed to close (except the down payment) in the form of seller assistance.  These are the buyers that may be pushed out of the market in 2010 as they will be forced to save longer and have more of their own cash invested in their home purchase. 

Don’t get me wrong…I don’t think that having more of a financial stake in a home purchase is a bad thing, as it tends to result in buyers who are truly ready to be home owners.

What’s the possible impact on West Bank home sales?

For buyers, this means you will need more cash on hand for your FHA home purchase.  Not only do you need the 3.5% down payment, but the cap on seller contributions towards your closing costs and prepaids (taxes, hazard insurance, flood insurance, lender fees, etc) means that you must have a larger amount of money saved before attempting to purchase a home.  For some people, this will result in a longer waiting time until you can buy.

For sellers, this could possibly mean a decrease in the number of qualified buyers for your home. A smaller pool of buyers equates to a reduction in demand.  A reduction in demand usually equates to lower selling prices.

If you have been waiting to put your home on the market until later in 2010, my recommendation is to do it as soon as possible – before these changes go into effect, since we do not know what the fall out might be.  This advice only applies to those sellers that fall within the current FHA loan limits.

• For more details, read the entire HUD release here

As always, your lender is the best source of detailed mortgage advice for your particular situation.  If you need a referral to a local FHA lender, please contact the West Bank Living Team and we would be happy to help you.

For more information about home buying or selling on the West Bank of New Orleans, or relocating to or from NAS JRB New Orleans, please contact the West Bank Living Team.

It would be our pleasure to have the opportunity to assist you with any of your real estate needs and have a little fun while doing it!

A little bird recently put a bug in my ear (yeah, I’m know I’m mixing metaphors or whatever you call them) and told me that there are going to be a good number of military relocations from San Diego to NAS JRB New Orleans in the next couple of months.

If you are amongst those that leaving behind sun, sand and an ocean view, let me welcome you to New Orleans and to the West Bank.

I was recently in San Diego and Newport Beach and I have to say that I was hard pressed to leave. It’s a stunningly beautiful place and the weather is exceptional – it’s no wonder that real estate is so expensive there.

Moving anywhere new always brings at least a little bit of culture shock…from the different weather to the strange local customs and food. Although, I have to say that I think you’ll enjoy our seafood a lot more than we enjoyed what they served in California. No offense, but adding a little seasoning wouldn’t kill anyone there, would it?

Anyway, as you prepare for your move, it’s always a good idea to do a little research about your new city. Since you’ve probably already heard the stories about Mardi Gras and the French Quarter, it’s up to me to let you know a few things you might not have been told.

• Despite our reputation for debauchery, New Orleans is a kid friendly community with plenty of fun to be had by families. From the world class zoo and aquarium to the festivals that are held all around the city and in the adjoining parishes, there is always something to do to combat the dreaded “I’m bored….”
• Culture abounds in New Orleans, with an active arts community including the oldest opera association in the United States.
• Outdoor activities such as camping, hiking and canoeing are all available in the area when you know where to find them
• The weather in New Orleans is a far cry from what you are used to in San Diego. While April and October offer some of the most beautiful days in the city, the rest of the months can be a little challenging.
• When compared to southern California, we have very affordable homes. Before deciding on a housing budget, be sure to check your 2010 BAH Rates.

And, if all else fails, the beach is only a couple of hours away….

For more information about home buying or selling on the West Bank of New Orleans, or relocating to or from NAS JRB New Orleans, please contact the West Bank Living Team.

It would be our pleasure to have the opportunity to assist you with any of your real estate needs and have a little fun while doing it!

Current real estate activity in Algiers LA 70131 (excluding English Turn):

173 homes are for sale in Algiers 70131

• High list price $895,000
• Low list price $37,900
• Average list price $183,380
• Median list price $155,000

28 homes are under contract or pending sale, priced from $40,000 to $429,000

Based on the number of December sales (13), there is a 13.3 month supply of homes for sale in the area

Algiers LA 70131 | Number of Homes Sold | December 2009

2009 home sales in Algiers fell just short of those in 2008, ending the year with 208 successful sales.  This is the second year of severely reduced home sales in the area and it’s reflected in the average days on market (see chart below).

I wish I had a crystal ball for why Algiers is performing so poorly, but I don’t.  What I am hearing from home buyers is a combination of schools, taxes, insurance and the poor perception of the City of New Orleans are pushing them to nearby areas in Plaquemines Parish or Jefferson Parish.

Days on market (the length of time it takes a home to sell) has been on the increase in Algiers for the last several years, ending 2009 at 137 days.  Remember, this is just an average.

• The home on the market the longest sold in 935 days.
• The home on the market the shortest period of time sold in 1 day.

Algiers LA 70131 | Average Home Sale Prices | December 2009

Home prices in Algiers remained fairly steady through most of 2009, ending the year with an average sale price of  $155,362.  This is a 4.9% decline from the 2008 average, putting home values below those of a pre-Katrina market.  While we were hopeful at the beginning of the year that we would begin to see a recovery in the Algiers market, it’s not happening yet.

• The most expensive home sold in Algiers in 2009 was a 7 bedroom, 4.5 bath home in Lakewood Estates that sold for $519,000 in November, 2009.
• The least expensive home sold in Algiers in 2009 was a 3 bedroom, 1 bath home that sold for $8,000 in February, 2009.  (This particular property was purchased by the seller at a tax sale)

FHA is the most popular financing choice of Algiers home buyers, with 39% opting to use that type of loan for their home purchase.  Of note is that 41% of home sellers in Algiers provided some type of closing cost assistance to buyers when selling their home.  It’s important to be sure that you know all of the details about comparable sales in your area when pricing your home to sell.

Find out what's going on in your West Bank neighborhood with this week's free market snapshot. 

All data is provided by GSREIN and is deemed reliable, but not guaranteed

Related Articles:

Home buying tips
Home selling tips

West Bank Market Statistics

For more information about home buying or selling on the West Bank of New Orleans, or relocating to or from NAS JRB New Orleans, please contact the West Bank Living Team.

It would be our pleasure to have the opportunity to assist you with any of your real estate needs and have a little fun while doing it!

Current real estate activity in Algiers Point:

29 homes are for sale in the Point

• High list price $425,000
• Low list price $140,000
• Average list price $275,293
• Median list price $275,000

3 homes are under contract or pending sale, priced from $123,500 to $399,000

Based on the number of December sales (1), there is a 29 month supply of homes for sale in the area

Algiers Point | Number of Home Sales | December 2009

The number of homes sold in Algiers Point dropped from 35 in 2008 to 20 in 2009.  This is less than half of the number of homes being sold in the neighborhood prior to Katrina, and represents one of the hardest areas on the West Bank to sell a home in.  It’s important to note that these are single family homes only – doubles and other multi-family homes will be addressed in a separate report of sale in the area.

Interestingly enough, as sales have declined so have the average days on market.  Given that we have also seen a decrease in selling prices, it appears that the bargains are moving off of the market quickly while the majority of the inventory is just languishing.

• The home on the market the longest in 2009 sold in 231 days, while the home on the market the shortest period of time sold in just 1 day.

Algiers Point | Average Home Sale Prices | December 2009

Average home sale prices in Algiers Point declined by 6.7% from 2008 to 2009, ending the year at $205,105.

• The most expensive home sold in the Point was a 5 bedroom, 5.5 bathroom Victorian that sold for $450,000 in September, 2009.
• The least expensive home sold in the Point was a 2 bedroom, 1 bath shotgun in need of renovations that sold for $70,000 in February, 2009.

FHA loans led the pack in financing options in 2009 with 35% of buyers opting to finance their home purchase that way.  Conventional loans came in second at 30%, followed by cash at 25%.

25% of home sellers in the Point provided some type of closing cost assistance to the purchasers in 2009, so sellers should be sure to get all of the details of comparable properties when pricing your home.

Find out what's going on in your West Bank neighborhood with this week's free market snapshot.

All data is provided by GSREIN and is deemed reliable, but not guaranteed

Related Articles:

Home buying tips
Home selling tips

West Bank Market Statistics

For more information about home buying or selling on the West Bank of New Orleans, or relocating to or from NAS JRB New Orleans, please contact the West Bank Living Team.

It would be our pleasure to have the opportunity to assist you with any of your real estate needs and have a little fun while doing it!

Just Listed in Marrero, Louisiana

New on the market, this neat and clean Marrero home is searching for a new owner and is priced to sell at only $139,000. Tucked in between East Ames and the Lafitte Larose Highway, the location is a little rural feeling even though it’s less than a mile from shopping, schools and churches.

What Does 2613 Wyoming offer?

• 4 bedrooms, including a private master that is separate from the rest
• 2 full bathrooms
• Living room
• Updated kitchen
• Large, flexible space that is currently used as a dining room but could be additional living area if needed
• Fenced back yard with patio
• Attached garage
• 4 year old roof
• No carpet! Ceramic, wood and laminate flooring throughout

Fishermen take note – there is plenty of space for parking your boat when you aren’t down the bayou catching tonight’s dinner. Prefer to hit the road in your RV? There’s room for that too!

Take a virtual tour

Print a flyer

Community information

• Jefferson Parish Public Schools
• Bayou Segnette State Park
• Jefferson Parish Assessor's Office
• Jefferson Parish official website

For more information about home buying or selling on the West Bank of New Orleans, or relocating to or from NAS JRB New Orleans, please contact the West Bank Living Team.

It would be our pleasure to have the opportunity to assist you with any of your real estate needs and have a little fun while doing it!

Current real estate activity in Algiers LA 70114:

121 homes are for sale in Algiers 70114

• High list price $599,000
• Low list price $13,000
• Average list price $147,446
• Median list price $119,900

16 homes are under contract or pending sale, priced from $28,000 to $399,000 Based on December 2009 sales (6), there is a 20 month supply of homes for sale in the area

Algiers LA 70114 | Number of Homes Sold | December 2009

After a brief uptick in 2008, the number of home sales in the 70114 zip code of Algiers dropped almost 37% in 2009, ending the year with 73 homes sold. Much of this can be attributed to declining sales in Algiers Point, which has been hard hit by the changes in the West Bank real estate market.

Interestingly, the days on market for homes sold in the area has remained flat for the last 3 years. When priced right for the neighborhood and condition, homes are selling in an average of 102 days.

• The home on the market the longest in 2009 sold in 463 days.
• The home on the market the shortest period of time in 2009 sold in 1 day.

Algiers LA 70114 | Average Home Sale Prices | December 2009

Prices in the 70114 zip code of Algiers continue to decline, dropping over 10% from 2008 to 2009. Besides the impact of fewer high end sales in the Point, there are a good number of homes in need of restoration or renovation that are being purchased for cash by investors or buyers who have the time and money to put into a fixer-upper.

This section of Algiers is the only area on the West Bank that is seeing cash as the primary purchasing tool.FHA is right behind with 34% of the market. Of note is that 30% of home sellers provided some type of closing cost assistance to the purchasers in 2009, so be sure that your agent is providing you with all of the details on comparable sales in your neighborhood.

Find out what's going on in your West Bank neighborhood with this week's free market snapshot.

All data is provided by GSREIN and is deemed reliable, but not guaranteed

Related Articles:

Home buying tips

Home selling tips

West Bank Market Statistics

For more information about home buying or selling on the West Bank of New Orleans, or relocating to or from NAS JRB New Orleans, please contact the West Bank Living Team.

It would be our pleasure to have the opportunity to assist you with any of your real estate needs and have a little fun while doing it!

Current real estate activity in the English Turn subdivision in New Orleans, LA:

The are 30 homes for sale in English Turn

• High list price $1,995,000
• Low list price $400,000
• Average list price $682,897
• Median list price $549,000

3 homes are under contract or pending sale, priced from $395,000 to $599,000 Based on the number of homes sold in December (2), there is a 15 month supply of homes for sale in the English Turn subdivision

English Turn | Number of Homes Sold | December 2009

English Turn ended 2009 with the exact same number of homes sold as in 2008. While home sales are substantially below the 2005-2007 period, it’s encouraging to see some stabilization in the one of the high end West Bank real estate markets.

How long is it taking to sell English Turn homes?

The days on market for English Turn has taken a dramatic increase in the last couple of years. Remember, this is (1) only an average and (2) only for homes that have actually sold. Some homes in the area have been on the market for an extended period of time without selling yet.

• The longest time for an English Turn home to sell in 2009 was in 776 days.
• The fastest sale time for an English Turn home to sell in 2009 was in 1 day.

English Turn | Average Home Sale Prices | December 2009

Home prices in English Turn have been all over the board this year, with the lower end of the luxury price range selling at a much better rate. This has resulted in a massive drop in average sale prices in the neighborhood, ending 2009 at $492,938.

• The most expensive home sold in 2009 in English Turn was a 6 bedroom, 6.5 bath home with over 8,000 square feet of living area that sold in October, 2009 for $950,000
• The least expensive home sold in 2009 in English Turn was a 3 bedroom, 3.5 bath bank owned home that sold in June, 2009 for $320,000

Because English Turn is outside of the FHA loan limits for financing in the New Orleans area, conventional financing rules, accounting for 73% of the 2009 sales. Only 2 sellers provided any closing cost assistance to buyers in the area, both on homes that sold for less than $425,000.

All data is provided by GSREIN and is deemed reliable, but not guaranteed

Related Articles:

Home buying tips

Home selling tips

West Bank Market Statistics

For more information about home buying or selling on the West Bank of New Orleans, or relocating to or from NAS JRB New Orleans, please contact the West Bank Living Team.

It would be our pleasure to have the opportunity to assist you with any of your real estate needs and have a little fun while doing it!