(Newswire.net — October 24, 2021) — A new report indicates that the property market in New Orleans is on an uptrend. Home prices in the city’s moderately priced neighborhoods are rising more sharply than expected and the trend will continue in the coming months.
While a boom in property prices is always good news for real estate investors, for the average home buyer or renter, it’s quite different.
New Orleans has for quite some time struggled to offer affordable housing for its residents and as prices shoot up, it is becoming harder to achieve that dream.
Some studies show that over 50% of all renters in the city, and a third of homeowners are overpaying for their houses.
With increased job losses as a result of the pandemic and the ensuing economic downtown, such high prices may prove to be a huge burden for low and middle-income residents in the city.
What Rising Trends Mean for Home Sellers
Ultimately, the goal for any property seller is to put their home in the market when the prices are high. However, there are some downside risks associated with rising property markets.
For starters, we could be in a bubble where property prices are driven by speculative practices as opposed to real market fundamentals.
Additionally, a lot of low and middle-income families in the city may be priced out of owning property due to these high prices. As a result, a sharp decline in home demand could be on the cards in the near future.
Nonetheless, the city remains a huge market for real estate investors and the idea to sell my house fast in New Orleans is still viable.
What Can the City Do?
Local government authorities in New Orleans may be forced to act if property prices continue to rise. According to analysts at Favor Home Solutions, there are several ways the city can respond to a price boom in the property market.
First, it can tap into the American Rescue Plan funds to invest in affordable housing in neighborhoods that are in need. Places like Oretha Castle Haley Boulevard, Broad Street, and several others need investments in affordable housing urgently right now.
The city can also provide funding for rental assistance programs for poor residents. This will help offset rental costs for a lot of families, something that will in turn reduce potential evictions in the future.
The Future of New Orleans’s Property Market
Even before the pandemic, the property market in New Orleans was already growing fast. But during the COVID-19 pandemic, we saw just how resilient the market is.
Although it was largely expected that the property market will face some headwinds from the economic impacts of the pandemic, home prices have rebounded strongly.
To be fair, it’s not just New Orleans seeing a boom in property prices. Home prices at the national level are also high and most major cities are seeing a similar boom.
So, in case you are wondering if this is a good time to sell my house fast in New Orleans, it is perhaps the best time to cash out. But it won’t be a surprise if property prices keep rising in the near term.