A recent story in the Gambit predicted the NOLA real estate market faces lower prices and longer times on the market in 2020.
But Fannie, Freddie & the Mortgage Bankers Association say otherwise.
Is the doom & gloom accurate? Or will the strong market continue?
Rose Colored Glasses
3 real estate industry giants are optimistic about what’s ahead in 2020 for real estate.
Fannie Mae says that record numbers of people believe now is a good time to buy a home. Why? Mortgage rates are near 3 year lows and overall housing optimism is at an all-time high.
In addition to these factors, Freddie Mac notes the strong labor market should continue to have a positive impact on housing.
The Doom & Gloom Angle
If the industry drivers are positive, what could go wrong?
A recent headline from The Advocate screams:
Home sales forecast for 2020: lower prices and longer times on the market
Are they right?
The fact is, Fannie & Freddie forecasts are national reports based on macro-data and we all know that these numbers vary wildly in our swampy little corner of the world here in New Orleans.
Plus, the level of inventory on the local market has a big impact on the length of time houses stay listed for sale and the eventual price they settle for.
And of course, factor in that 2020 is a presidential election year which always causes market volatility. Not to mention a Governor’s race to be decided soon.
So what should you expect?
The answer locally: it depends.
Our Secret: It’s All About Location
You’ve heard the saying: “location, location, location”. And nothing could be more important when it comes to the immediate future of the real estate market in New Orleans.
Metro NOLA is an incredibly diverse market. It covers well-established areas like Jefferson Parish, high growth areas like Lakeview & Mid City and other areas that are struggling mightily like New Orleans East.
Even within these smaller markets, there are big ranges in housing options.
Generalizing how the housing market is going to be across all these areas is difficult at best.
What’s more important is to understand the dynamics within each local area of our city AND to have a good base of lending options to pull from in order to suit each potential buyer.
That’s where we come in!
Bolster your plans for 2020 by getting in touch with us today to make sure you’re TOTALLY up to date on all the latest lending options, construction loans & rehab programs available to your buyers!