Real Estate in the New Year

Welcome to 2009! Given the changes in the international real estate markets in the last year, clients are asking what to expect in the new year. Here in Acadiana, we're blessed - while the market fervor has slowed a bit since the post-Katrina boom (causing people to think we've entered a "slow" market), we've returned to our pre-Katrina strong market. And, unlike most of the rest of the country, we have not been impacted by declining real estate values.

Unfortunately, all the national press about the terrible real estate market has had its effect on buyers, who mistakenly think that our market is following the same pattern as the national market. Some have lost out on the house they really wanted because they assumed - incorrently - that all sellers here are desperate, and that there are no willing buyers. While there was over-building in certain segments of the new home market, for the most part our market is still strong, and while prices are somewhat more negotiable, no one is giving their home away.

What does 2009 have in store for us? With interest rates at an amazingly low point, we should see more activity as winter turns to spring. Already, listing agents are feeling the impact of the lower mortgage rates by increased showings and increased offers on our properties.

Buying a home is much like buying a fine antique; when you find the right one, go for it! While you certainly don't want to give your money away, ask your agent to run a Comparative Market Analysis, using comparable sales no older than six months, to determine what a fair offer might be. Get pre-approved by a bank or mortgage company, so you can send in your pre-approval letter with your offer, and go for it! There's nothing worse than watching the face of a client who has just discovered that the house they really wanted was sold to someone else while they waited for the market to "bottom out" or for interest rates to fall even lower.

In the new construction market, there is a greater flexibility in the offers being accepted. Some builders are offering money toward closing costs, and others are willing to negotiate their sales price down. However, most builders are very concious of the effect that accepting a lower sales price will have on their future sales, and are wary; instead, they may be more amenable to a "mortgage buy-down." Consult your mortgage professional for the details on buy-downs.

If you're thinking of buying a new home, 2009 is definitely the year to do it. And if you're considering looking at houses, or if you would like to know the market value of your own present property, call me - I would be delighted to introduce you to what is available on the market, and to provide you with a complimentary Comparative Market Analysis to help establish the market worth of your property.

Happy New Year!