Real Estate Information Archive

Whether in New Orleans, River Parishes, West Bank, or the North Shore buying a new home is always a big decision. Not only do buyers face the prospect of taking on a new home and all the joys and responsibility that goes with it, but it is also important to look at the investment potential of a home. It's a lot to think about, and many people decide to just set the whole idea on the back burner and wait until spring. By doing this, a lot of people are missing out on some great real estate opportunities that are available in December and January.

These colder and damper months are the exact time when the real estate market is hot, especially for buyers. Since fewer people are willing to take time away from their holiday routines to look for a home there will be less competition for any home or investment property you are looking to buy.

Of course, if you are going to buy a new home near the holidays, you'll need plenty of advice and guidance to help you negotiate the best price on a home with all the features you need. But in addition to finding a home with an affordable mortgage, you'll want a solid construction, and you'll want to work with a real estate agent with a solid reputation. So, if you're ready to give up writing that high rent check every month, then give me, Rose Clouse, a call today.

My team and I are highly experienced real estate professionals with a strong commitment to the New Orleans and surrounding real estate markets. Our experience and connections in the real estate world gives us a true edge in helping our clients snag just the right home.

If you think about it, as one year gets ready to end and another to begin it's a perfect time to make a new start. A new home just might be the perfect way to begin.

Rose Clouse
Realty Executives, SELA
Realtor/Associate Broker
RoseClouse.com
Cell: 504-427-3899
Office: 985-307-1058
Fax: 985-307-1059
13592 River Road, Suite 6
Destrehan, LA 70047

Each Office Independently Owned & Operated
Licensed by Louisiana Real Estate Commission

Home Buying Attractive Due To High Rental Demand

As the New Orleans area continues to recover from the down housing market and impact of yet another powerful hurricane, the demand for rentals remains high, leaving residents with limited selection and high prices.  People who are looking to live in New Orleans should turn towards the vast selection of homes for sale.  With relatively low prices and excellent interest rates, buying could be a smarter decision for residents and their families.

According to New Orleans City Business, nearly 59,000 homes were damaged by hurricane Isaac.  Although the storm was relatively weak, its flooding damage was significant.  Areas like Jefferson, Orleans, and St. John the Baptist parishes were hit the hardest.  Home damages have displaced residents who turn to rental homes and apartments, increasing competition as people vie for this housing option. 

But with home sales prices down, the idea of home buying is attractive, especially since interest rates remain low.  Compared with last year, the average selling price of homes in the New Orleans area in September was down 0.7 percent.  East Jefferson home prices averaged less than $200,000. 

With the housing market projected to recover and home prices likely to rise in the near future, buying a home at a low price now could be a wise decision in the long run. Mortgage rates are still relatively low, and tax benefits also make home buying appealing at this point in time.  With the high prices of rentals, it might actually be less to buy a house than rent.  Want to figure out if it makes sense to buy?  Find two similar houses, one for sale and one for rent, and divide the asking price by the annual rent.  A rent ratio of 20 or more usually means that it costs more to own than rent after you factor in the mortgage, taxes, insurance, repairs, etc.  If that ratio is closer to 10, buying is likely the better option. 

Consumer habits seem to favor rentals, but the New Orleans area is seeing a supply-demand imbalance that is creating higher prices for residents and severely limiting the options for rental homes and apartments.  Great interest rates are fueling a housing recovery that could eventually help the broader economy, and with an excellent selection of homes for sale, people can pick the right one to create a home for their family.

Paige Taylor is a creative writer from Michigan.  In addition to her work as a guest writer, she works closely with Best Drug Rehabilitation, helping people find drug rehab programs to aid in their recovery.

Local lenders across the New Orleans metropolitan region are reporting an increase in home loans. The increase in activity signals that buyers are looking for and buying homes in the metro area. Lenders point out that it is a great time for home buyers and homeowners who are looking to refinance. Low interest rates, a diverse housing market, and renewed bank confidence are three major factors for the increase in home loan activity. Other factors include young professionals in the tech industry moving to New Orleans and the quality of education drawing people to the region.

Teresa O. Breaux, Louisiana market president for Iberia Bank Mortgage, said, “The volume of business in the southeast region in January 2012 is almost double the volume for the same period in 2011.”

Lenders point out that the past few months have been as active as the summer, even with the holidays and Carnival, indicating the strong interest buyers and owners have in securing a loan and refinancing. High loan activity has been reported in Uptown, the French Quarter, and the lakefront area. There has also been activity in Marigny, Bywater, and St. Bernard.

Besides home loan activity, there has been an increase in home construction loans. President of First NBC Ashton Ryan Jr. said, “We see a strong pipeline of new construction projects particularly around the Mid-City medical complex and the Loyola/Girod new streetcar corridor. The tax credit construction is winding down and new tax credits were less focused on New Orleans. School construction and levee construction continues strong…We also see a lot of renovation on historic and Katrina-damaged real estate.” Lenders are offering programs tailored for home owners to go from new construction phases to long-term mortgages.

Experts emphasize that potential buyers should work with local, experienced lenders to help them get pre-qualified. Local lenders bring their expertise about the metro area to the table, including neighborhood characteristics and history.

There are a variety of loan options for New Orleans metro residents in particular, depending on their background and location, including Federal Home Administration loans, Veteran Affairs loans, Rural Development Loan Assistance.

Local lenders encourage home buyers to take advantage of great rates, housing options, and affordable prices.

Optimism is finally breaking into view in the real estate universe, rather like the first shafts of morning light. As everyone knows, the last few years have been tough in the real estate world, but in some places there are signs that, however slowly, things may be changing. Overall home sales in the United States are on the rise, and that is very likely a contributing factor to the rise of home sales in New Orleans as well.

Numbers don’t lie; that’s the theory anyway. Sure they can be manipulated, arranged and presented in such a way that makes it appear to be deceiving, but those who have knowledge, training and talent in the area can usually decipher the deception.

We are going to examine some statistics about the New Orleans housing market enjoying an uptick these days in, however it is always best to check into these stats for yourself, not only to verify the accuracy of them, but also to apply them to your unique, personal lifestyle.

Home prices in metropolitan New Orleans continued to drop throughout 2011; however, according to fresh information from the New Orleans Metropolitan Association of Realtors, the pace of the decline has slowed a bit. Not only that but when you add it to the statistical data showing that the number of homes sold had risen correspondingly, it seems to be cause for at least some optimism.

Another potential ray of sunshine peeking over the real estate horizon in New Orleans is actually twofold: While the price per square foot average in the metro endured a fall of about 1 percent over the past year (from 2010 to 2011), it turned out to be much better than the 4 percent decline seen during the two preceding years. The second encouraging stat is that home sale numbers jumped up an average of about 9 percent, with St. John the Baptist the only parish that did not enjoy a boost in home sale volume.

Meanwhile, in the rest of the U.S., the National Association of Home Builders in conjunction with Wells Fargo announced in February that something they call their builder sentiment index showed some upward mobility for a fifth consecutive month. This essentially means that the builders feel good about the housing market.

When selecting a home it is often important to consider the local school system.  Here at Clouse Realty we can help you with your selection by providing you with not only statistical data but also first hand local knowledge.  So whether you’re considering New Orleans, Metairie, Kenner, Destrehan, LaPlace, or any other local areas feel free to give us a call.  We will be glad to help out!

Ken Clouse
504-432-4262
Owner/Broker/Realtor
Clouse Realty & Assoc.
 

Homes without security systems are three times more likely to be burglarized than those with home security systems, according to a study by The Washington Post. The study also shows that burglars don't want to work very hard and don't want to spend more than 60 seconds trying to enter a house. Security systems can help deter burglars as can deadbolt locks, locked windows and other precautionary measures. Such measures can also help lower your homeowners insurance costs and make your house more valuable on the real estate market.

Home Security for Homeowners

According to the Federal Citizen Information Center, installing a home security system is one of a dozen ways to lower your homeowners insurance costs. Insurance companies will often offer small discounts for burglar alarms and deadbolt locks and much larger discounts for sophisticated systems that ring the police, fire or other monitoring stations. Having a system can also increase the value of your home while protecting the assets inside. According to The New York Times, the average burglary loss in a home with an alarm system is $3,266 whereas the average loss in a home without one is $5,343. Experts assert what strikes many as common sense: this is because burglars have more time to steal items within the home if there isn't an alarm to scare them away.

Home Security for Home Buyers

More sophisticated home security systems can run anywhere from a few hundred dollars to more than several thousand, and that doesn't include the installation costs. If security is important, shop for houses with systems already installed. Make sure to get all the information about which monitoring companies you'll need to call and anything else you'll need to know to get the system up and running under your name. Once you purchase the house, test the system regularly, and make sure everyone in your household knows how to use it and what the pass codes are, if any.

Other Home Safety Tips

If you are a homeowner or potential home buyer, there are also a few other things you can do to improve your home safety. Install or look for homes with motion-detector lights, deadbolts, well-fitted window coverings that conceal your belongings and careful landscaping with shrubs and trees that burglars can't hide behind. Also, keep any tools and ladders that burglars could use to enter your house carefully locked away. Home security is important; with a little effort, you can make your home safe.

Buying a home is one of the most exciting events in a person's life, and choosing the right type of mortgage is an important part of the process. Our homes are the places we spend time with friends, nurture our families and relax away from the busy workplace, and the mortgage loans we choose can impact our financial well-being for years to come. Most experts agree that fixed rate mortgages are the best option for home buyers in today's economy because they won't increase unexpectedly, and they are the choice of more than half of all buyers today. Here is an overview of different types of mortgages, beginning with the fixed rate mortgage.

Fixed Rate Mortgage

This mortgage features a locked-in interest rate that won't change no matter what the market does. Buyers have the option of choosing between 15- and 30-year plans. FHA and VA loans are examples of fixed rate mortgages that are guaranteed by the government. They are often easier to qualify for and ask for a smaller down payment than other types of loan programs.

Adjustable Rate Mortgage (ARM)

While adjustable rate mortgages can be beneficial when market rates are low because the interest rates and mortgages payment will be lower as well, when the market recovers the payments can skyrocket. Option ARMs are a type of mortgage loan that falls within this category, and unlike more traditional ARMs, they do not have a cap on how much the rate can change. In some cases rate limit caps may be available. Periodic caps limit the amount of increase possible from one adjustment period to another. Overall caps limit the rate of interest increase over the life of the loan. Overall caps have been legally required since 1987.

Balloon Mortgages

Balloon mortgages are set up to act a lot like traditional fixed rate mortgages, but this is only at the beginning. After a period of typically 5 to 7 years, the buyer then pays off the outstanding balance in one lump sum.

Interest-Only Mortgages

In this type of loan, the buyer only pays the interest. While this can be appealing at first because payments will be very low, once the term expires, the buyer faces steeper loan payments to cover the principal of the loan.

Biweekly and Bimonthly Mortgages

Buyers make payments every two weeks and generally have shorter loan terms and pay less in interest. However, the buyer will have more payments during a one-year period than with other loans.

Should I rent or should I buy? The renting vs. buying question is one many people encounter at some point. While some view renting as more affordable and less of a hassle, others see the value in owning a home and want nothing more than to rid themselves of difficult landlords or fellow tenants. Although renting may seem easier and less expensive, in the long run, all statistics show that owning a home is a better financial investment. Here are a few ways to consider whether owning a home is right for you.

Today's Economy

While today's economic situation seems a bit daunting for most Americans, there is a silver lining. According to a study in The New York Times, now is a great time to buy for many people because prices are historically low. However, the study also provides potential home buyers with a ratio to help them determine whether buying is the right option: Divide the purchase price of the house with the annual cost of renting a similar one. An answer above 20 means you should at least consider renting, while a ratio below 20 makes buying a lot more appealing.

Length of Stay

How long you plan to stay in the house should also help you determine whether to rent or buy. For example, The New York Times also claims that for most people who stay in their homes for more than six years, buying is almost always a better option, providing them with an average savings of $1,743 per year. If you aren't staying for at least five years, renting might be a better alternative.

Financial Situation

It is true that it takes stronger credit and a larger down payment to get into a home than it did several years ago. However, there are still a lot of options available to first-time home buyers, so don't let your financial situation rule out a purchase. The government offers FHA loans and loans for teachers, officers, firefighters and more. There are also many state programs that can help.

Stability

Finally, consider renting out one room of the new home you buy if you are worried about making payments. However, if you are married and securely employed, chances are that the mortgage payment will be easy to make. If you are temporarily employed or between jobs, consider waiting until you find a more secure job to make this transition.

Living in New Orleans already brings with it so many perks: it means being part of a vibrant, diverse community, with access to world-renowned entertainment, rich history and culture, good quality schools, and, of course, excellent food. But did you know that the Louisiana Homestead Tax Exemption can be a huge help when it comes to buying a home in the Big Easy?

The Louisiana Homestead Tax Exemption provides a tax exemption on the first $75,000 of the value of your home. In other words, if your home is worth $100,000, you only have to pay property taxes on $25,000 of your home’s value. That is a 75% savings! And yes, this means that homes worth $75,000 and less pay absolutely no property taxes.

As you can imagine, this exemption frees up significant funds for homeowners, allowing them to put that money toward remodeling, landscaping, and so much more.

The exemption benefits homeowners in all tax brackets, and the only qualification is that you own and occupy your home. To file for the exemption, personally bring the recorded copy of the sale of your home, along with the Conveyance Office Book (C.O.B.) and folio number to the Parish Assessor's Office—it’s that easy. Come next year, a renewal card will be sent to you in the mail. As long as you maintain ownership of your home and continue to reside in it, you can simply mail back the card each year and your exemption will automatically be renewed.

Considering that Louisiana property taxes are already lower than the national average, the Louisiana Homestead Tax Exemption is like icing on the cake for those looking to relocate to New Orleans and surrounding areas.

Louisiana is a state of varied topography and landscapes, providing prospective homebuyers with plenty of real estate choices. But what many people don’t consider is that there are different ground level elevations in Louisiana, and these variations can affect the cost of flood insurance and the resale value of your home – not to mention the severity of damages that can occur in an actual flood. In the complex process of buying a home, this consideration can easily be sidelined. Unfortunately, Hurricane Katrina and Rita have forced these concerns into sharp relief.

This is why it is so important to select a real estate agent who understands the flood zoning of the area, and how the zoning will affect costs for your home. Consider the fact that homes in elevations with little to no flood risk may only cost a few hundred dollars per year to insure against flooding, while homes in the lowest elevations can cost thousands. This is an example of how the being armed with knowledge can have lasting financial implications.

So, how well does your agent understand flood zoning in Louisiana? If you’ve chosen Clouse Realty and Associates for your real estate needs, then you can be sure that your agent is using the best flood zone information available to help you make an informed decision when selecting a new home.

With new, more accurate mapping made available by the Louisiana Mapping Project (LaMP), Clouse Realty and Associates have even more information at their fingertips to help you choose a home that wont drown you in excessive insurance premiums. By consulting the Updated Digital Flood Maps of your area, Clouse Realty and Associates can help you determine the flood-associated costs of your prospective home, and give you the peace of mind in knowing that your investment will be protected.