What Type of Challenges do New Orleans Homebuyers Face?

Regardless of where you buy a home, certain challenges come with the process. However, each market may present specific challenges and New Orleans is certainly a unique place to buy a home.

Some of the challenges of buying a home in New Orleans may be present now, but could fade away as the market changes. It could go from a sellers’ market to a buyers’ market, which presents a whole new set of challenges. Here are a few of the challenges you may face as a homebuyer in New Orleans.

Parking

Depending on the neighborhood you choose to shop in, parking could be a serious issue. Some of the older neighborhoods in New Orleans don’t offer garage or driveway parking. Many will offer off street parking, but it can be hard to find in some key neighborhoods in the downtown area.

Make sure you understand how the parking works and consider this during your home search. If you don’t own a vehicle, you won’t have much to worry about. If you do, make sure you know where you’ll park it before buying a home in one of the downtown neighborhoods.

Lower Home Inventory

When the market is considered in favor of the sellers, it means there’s not much competition for someone listing their New Orleans home for sale. This is known as a low home inventory and happens whenever at least 6 months of inventory isn’t present on the market.

A sellers’ market means you’ll likely face bidding wars as a homebuyer. There are fewer homes to choose from and plenty of buyers looking. Be ready to make a strong offer with fewer contingencies, if you want to secure a deal. It’s also a good idea to be pre-approved for financing before you start shopping.

Mortgage Rate Increases

Mortgage rates have gone up some over the past year and are expected to go up even more. This makes it harder for buyers to afford as much house as the higher mortgage payment will increase the debt-to-income ratio.

Get pre-approved for your mortgage before you start shopping to ensure you know how much you can afford. Without a pre-approval, you may struggle to find a home you can afford in New Orleans. In addition, make sure you start shopping as soon as possible so that you can secure a mortgage and a new home before rates increase.

No matter when you decide to enter the market as a homebuyer in New Orleans, there will be challenges. It’s simply part of the process. Whether it’s a buyers’ market or a sellers’ market, the process of buying a home doesn’t always happen smoothly.

It’s best to ensure you hire a good local real estate agent in New Orleans or you could end up with even more challenges. Your real estate agent will help to make the process move forward with fewer challenges. They know what to expect and they understand the market. Lean on your agent and you’ll be able to find the right home, for the right price in New Orleans.