What’s the Difference Between a Buyer’s Market and a Seller’s Market?

Buying or selling a home is one of the largest financial decisions you will ever make. Not only are you making plans for where you are going to live for the next several years – or perhaps the rest of your life – but you’re also making an investment decision. You are very likely applying for a mortgage equal to several years’ worth of your annual income. This decision should not be made lightly. As consumers when we make the decision to purchase a home or list a home for sale, we want to make sure we’re doing it at the most optimal time. So the question becomes, what is a seller’s market vs a buyer’s market? You’ve likely heard these terms before, but are you sure you know what they mean, or more importantly, what they mean for you? What is the Definition of a Buyer’s Market or a Seller’s Market? In the housing market, like with all markets, prices rise and fall with supply and demand. This same economic theory applies when buying or selling a home. So what is the definition of a buyer’s market or a seller’s market? How to Know if It’s a Buyer’s Market In a buyer’s market, the supply is far greater than the demand. More people are trying to sell homes than trying to buy homes. How to Know if It’s a Seller’s Market In a seller’s market, the demand is far greater than the supply. More people are trying to buy homes than trying to sell homes. What Is the Effect of a Buyer’s Market? In a buyer’s market, the number of homes available for sale surpasses the number of potential buyers in the market. This means home sellers need to be extremely competitive, and home prices should be adjusted below market value to attract more buyers. A buyer’s market can be an especially good time for new home buyers to make an offer on their first home because entry-level homes will be at the best prices possible. What is the Effect of a Seller’s Market? In a seller’s market, there are fewer homes listed for sale than there are potential buyers, which often causes home prices to go up. This is when you’ll hear a lot of chatter about multiple offers. In multiple offer situations, sellers are typically positioned well enough to pick and choose the most attractive offer. In a seller’s market, homes move quickly with many only on the market for a few days. Additionally, many offers will come in above the asking price because numerous buyers are submitting competitive offers in order to outbid each other. What Kind of Market Are We In Right Now? In our market, we’re still experiencing a seller’s market, in which sellers are still in a more favorable position than buyers. Why is this? For starters, the federal interest rate has been, until very recently, extremely low, so mortgages could be acquired at historic low rates. Because of this, buying power was at an all time high, encouraging a significant number of buyers to jump into the market. In turn, the demand for homes skyrocketed. Additionally, global supply chain challenges due to the pandemic, government tariffs and international relations have contributed to an already existing housing shortage. During the height of the crisis, lumber more than tripled in price, making homes even more expensive, and the supply chain stranglehold meant that homes simply couldn’t be completed as quickly as demand required. In many cases, homes were built and ready to move–in but there was a shortage of windows, air conditioners, and kitchen appliances. All of these factors pinched supply, thereby impacting the builder's inability to keep up with demand. And finally, the pandemic had a negative effect on the labor market, specifically the increase in remote work options, motivated people to move to alternative locations. The migration of workers and home owners ensued. Altogether interest rates, the supply chain issues, and the migration of workers set the stage for where we are now. What Will We See in the Near Future? A Seller’s Market or a Buyer’s Market? While economist’s opinions vary on this topic most (though not all) agree we should not expect a housing market crash - and certainly not of the same scale as the one we suffered in 2008. The 2008 housing crash was the direct result of a housing bubble caused by predatory loans and loose mortgage requirements. In our current market, home buyers are starting to experience a market where inventory is still low, but their buying power has decreased. With this in mind, even if market conditions begin to show a dip in property values, we aren’t set up for another bubble burst. Most economists agree - the current seller’s market should last for the next 12 to 24 months as the buyers who are still waiting to move are still motivated to buy - as soon as a home comes on the market meeting their needs. The Fed increased interest rates in an attempt to calm inflation, and we have already seen a rise in mortgage rates because of it. But, quite simply, demand for homes hasn’t yet decreased. Should I Buy a Home Right Now? This is an excellent question to discuss with your realtor. Many indicators show for both buyers or sellers, market activity and demand will remain the same in the foreseeable future. But there’s also a side effect of inflation. That means as inflation increases, the equity in your home increases with it. So while mortgage rates continue to climb, as home prices climb as well, equity will only blossom. Interested in buying a new house or selling your home? Contact one of our agents today.

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Is Rehabbing a Home the Right Move for You?

  You’ve found your dream home in beautiful New Orleans, Louisiana. It’s in the perfect neighborhood, has a lush garden, and it’s close to where you work. You’re surrounded by neighbors who you’re preemptively making friends with. The only problem? It’s not livable yet. In contrast to a fixer-upper – which needs a few minor repairs but could still house a person comfortably – a rehab home needs serious work, like a brand-new plumbing system or roof. However, this also allows you to customize the house from the ground up, giving it a modern twist while preserving its historic qualities. Is rehabbing a home the right move for you? The Messy Side of Rehabbing a Home Before you sign any paperwork, take a moment to consider some of the potential snags you might encounter on the way. Although not as fun as jumping straight into demolishing walls, it’s important to consider the cons as well as the pros, because remodeling a house from scratch is a big project. 1.   Renovations Take Time Remodeling a house from the ground up can take months. You may be putting in new electrical wiring or repairing extensive flood damage. You’ll probably also be hiring people to work for you, and they may run into delays due to illness or family emergencies. Even the weather can affect renovation timelines. A rainy, muddy mess will hinder the movement of vehicles and materials. Be patient! It will all be worth it in the end. 2.   It Can Be Pricey In addition to the base price of the house, you might be shelling out tens of thousands of dollars for repairs. The cost of construction materials is high in 2022, so you’ll be paying more for lumber and plumbing fittings. You may also have to pay to haul trash and demolition debris to a dump. You’ll need to budget for the construction workers, electricians, and real estate agents helping with your project. It’s important to consider that you might also be paying rent or a mortgage on your current house, too, so you should add that to your total cost estimate. Still, if you can flip the house and sell it for more than you paid for it, it’s a great investment. 3.   It’s Harder to Get Financing It’s risky for banks to mortgage a rehab home, so not all of them will do it. You’ll also need to find a way to finance the renovations, and your lender might not allow you to do the renovations yourself. 4.   You Can’t Move in Yet Where will you live while you’re renovating the new house? Active construction zones aren’t the most comfortable place to sleep, and there’s also the issue of the toilets potentially not being installed yet. If you’re buying a new house because you need to move for work or your family is growing, you may have to wait a few months for the new house to be finished first. However, this isn’t a problem if you’re planning to sell the freshly renovated house. The Benefits of Rehabbing a Home With every floorboard you pull up, you’re uncovering a layer of history. Countless stories have been told, and lives have been lived in old houses, and restoring it to its original beauty respects the people who once called it home. It’s a noble project to take on. 1.   A Historic House Has Character The old woodwork, antique light fixtures, and hastily added spare bedrooms lend a certain charm to historic houses, which are defined by being more than 50 years old and meeting the requirements of the National Register of Historic Places. Even if the home you’re planning on rehabbing doesn’t fit these criteria, it’s still rich in history. So much has happened inside it over the years! It might have survived Hurricane Katrina, housed the great-grandchild of a coal miner, or borne witness to a backyard wedding. Delving into the stories of the house as you remodel it is fascinating and makes you feel a connection to the former occupants. 2.   The House Is Yours to Customize Although you’ll still likely want to preserve the house’s character, you can add your own custom touches to it once it belongs to you. Whether you want reclaimed maple countertops, a marble slab island, modern light fixtures, or Mason jar porch lights, you make the decisions when it comes to decor. 3.   The Market Is Less Competitive Most people are looking for a move-in-ready house and not many people have the budget, time, or desire to carry out extensive repairs. If you’re in the lucky position of being able to rehab a house, you’ll find there are many available on the market. 4.   You Can Flip or Rent the House When you’re done, you can sell the house for a profit or rent it out to get a return on your investment for years to come. As long as the cost of repairs is reasonable, if you bought the house for $50,000 in a neighborhood that regularly sells houses for upwards of $150,000, then you could be making a sizable profit. 5.   The Process Is Fulfilling Through blood, sweat, and paint, you turned an unlivable building back into a home. That’s a serious accomplishment! When the wallpaper is up, and the last nails have been hammered in, you can look at the house and know that it’s essentially been made new. The Choice Is Yours It’s a massive undertaking, but restoring an old house to its former glory is a rewarding and satisfying project – especially in a place with as rich a history as New Orleans. At the end of the day, given a choice between a turnkey house or a diamond in the rough, you get to decide: Is rehabbing a home the right move for you? *Written by Rose Morrison renovated.com

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Welcome to Broadmoor, New Orleans, Real Estate

Broadmoor is a small neighborhood in New Orleans near the Uptown/Carrollton areas. The entirety of the neighborhood is just over half a square mile, but it is known for its new homes, vibrant culture, and walkable layout. The neighborhood of Broadmoor is defined by Eve St on the north, Washing Ave and Toledano St on the east, South Claiborne Avenue on the south, and Jefferson Ave, South Rocheblave St and Nashville Ave on the west. Broadmoor was one of the areas hit hardest by Hurricane Katrina in 2005, but because of that much of the neighborhood is new construction, or at least renovated and improved construction.  Originally, the Bring Back New Orleans Commission wanted to turn Broadmoor into a large park, but the residents who had lived there for generations wouldn’t stand for it. They insisted on rebuilding. Many of them lived on the second floor of their Broadmoor homes while they renovated the flood damage on the first floor. Even before the flooding, the Broadmoor Historic District was named to the National Register of Historic Places.  Things to Do in New Orleans: Broadmoor Dining in Broadmoor El Pavo Real Right in the heart of Broadmoor, where Napoleon Ave, Fontainebleau Dr, and S Broad St all converge, is this vibrant restaurant serving up authentic Mexican cuisine–with a New Orleans flair. Anyone who thinks that New Orleans can’t do Mexican food will soon be won over by the ceviche straight out of the Gulf of Mexico, the Carnitas, and the Al Pastor.  But the New Orleans fusion is what sets El Pavo Real apart: the menu is filled with fish dishes such as Pescado Vera Cruz, Pescado Frito tacos, and Shrimp Ensalada de la Casa.  The Vegan Snack Shack There’s always a line to get into the Vegan Snack Shack, but it’s because people love it so much–and the food is worth the wait. Try the Liberation Burger or the Pecan Burger, and their cinnamon rolls are to die for. Other treats are the all-vegan spicy sausage, baked mac and cheese, fried cauliflower, and their signature jambalaya.  The Original Cajun Seafood There are four locations of this very local chain around New Orleans, but many say that Broadmoor is the best. Known for having amazing cajun seafood–Po-Boys, Platters, Gumbo, Boiled Seafood–they also are one of the best places to get fresh raw seafood to cook at home. Always stocked with the latest catches you can fill up on shrimp, crawfish, crabs, oysters, catfish, and much more. Broadmoor Residents and Community When looking for Broadmoor real estate for sale you want to know what kind of community you’re moving into. The wonderful news is that Broadmoor has long been known for being family-friendly. There are several public primary and secondary schools, as well as charter public schools, in the Broadmoor neighborhood.  The Rosa F. Keller Library was originally built in 1918, and has been thoroughly renovated and refurbished, reopening in 2012. It now features classrooms, meeting rooms, a teaching kitchen and a coffee shop. There’s a community center and an outdoor reading garden.  Broadmoor Homes For Sale  With the 2005 flooding, much of Broadmore has been renovated or is new, and it is becoming a central hub for young professionals. Many of the Broadmoor houses for sale are starter homes, but you can also find historic homes that have been restored (or spared from the flooding altogether). The community is known for having some of the best walking streets in New Orleans, LA, as the homes are filled with gorgeous flowers and well-maintained yards.  Many of the homes for sale in Broadmoor have their roots in the late 1800s, but have been continually refurbished and expanded, both before and after Katrina. Those once-small homes have become three-story expansive homes–all while maintaining the charm of the Broadmoor improvements. With a population of just over 7000 residents, it’s estimated that 58% own and 42% rent, and the median home value is $320,000 while the median rent is $1,250. It’s especially known for the diversity of its residents, something which the community takes pride in.  Homes for sale in Broadmoor

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