As many people already know, Hurricane Katrina ravaged the city of New Orleans along with many surrounding areas. The high winds and rains flooded many of the homes that were in the neighboring area. So, people from all over the United States have started to make an effort in trying to reconstruct the area.
At first, the hurricane had a very negative effect on New Orleans real estate. As the city was being rebuilt, many people began to return to their home areas, which makes New Orleans real estate a more profitable place for investors.
The approximate home price for New Orleans real estate is about $175,000, which is almost $50,000 less than the national average of $216,000. New Orleans real estate has seen an expansion of profit of over 20% in recent months. This growth will keep going as people start to return to their areas in order to continue their lives.
Due to the relatively low home prices, New Orleans real estate is really the best option for investors. And, if prices keep on increasing at or above the current growth rate, the average home price New Orleans real estate will be of about $250,000 in the following six months. This will imply a gain of $75,000 for an investor who chooses to invest right now.
Try to determine the right possible price for New Orleans real estate by looking at homes that are alike and on sale in the same area. Then, check the prices of New Orleans real estate which have recently been sold. This will help you to determine the right price for your home once you feel ready to put it on the market. Obviously, a high price will prevent buyers from purchasing your home and the longer the property is on the market the less attractive it will be to your potential buyers.
Investors in New Orleans real estate should ensure they sell their properties within two or three weeks after putting it on the market. If New Orleans real estate has been on the market for too long, potential buyers will begin to think that something is not right.
Many investors also feel reticent to invest in New Orleans real estate as the recent devastation could make it a higher risk zone. Even without the backlash of the recent hurricane damage, the city of New Orleans could still be attractive to new permanent residents. If every cloud truly has a silver lining, the silver lining in question is surely that of the New Orleans real estate area.
Derek Greenfield is a contributing editor at RealEstatePropertyArticles.com. This article may be reproduced provided that its complete content, links and author byline are kept intact and unchanged. No additional links permitted. Hyperlinks and/or URLs must remain both human clickable and search engine spiderable.