Investors/buyers looking to buy foreclosure homes in New Orleans, LA have a large inventory to choose from right now. As of the week ending February 10, 2010, Trulia.com reported that there were currently 1,883 resale and new homes in New Orleans on Trulia, as well as 790 homes in foreclosure either pre-foreclosure, auction, or bank-owned stages.
The average listing price for New Orleans, LA homes for the week ending February 10, 2010 was $217,021 a decrease of 5.7%, or $12,999, compared to the prior week. Hot neighborhoods include the French Quarter, Garden District, Audubon, Uptown and Irish Channel where average listing prices range from $527,861 and $992,463 in the French Quarter and Garden District to $256,304 in the Irish Channel, $555,812 in the Uptown district and $700,890 in Audubon. Investors may want to check out the foreclosure inventory in these areas first. There are many good bargains available.
Where to Find Foreclosures
You can find foreclosed homes in New Orleans through the following primary sources:
- Realtor and local MLS
- County records
- Auctions (online auctions as well)
Why Buy Foreclosures
Foreclosures are discounted properties so you have a built in equity when you buy a foreclosure or pre-foreclosure short sale property. If you are handy and can do repairs yourself, foreclosures are even more attractive. Since homebuyers and investors are looking for good deals, foreclosures are popular choices in today’s real estate market. You may even find yourself competing for a REO property (real estate owned) property in some neighborhoods.
What You Should Be Aware Of
Foreclosures may not be in good condition and may need major repairs. Some foreclosures have been stripped of kitchens and bathroom, hardware, appliances and anything of value by angry former owners who have lost their homes to foreclosure. You need to conduct an inspection, do your due diligence and make sure you have budgeted for repairs before you make a final decision on buying a foreclosure property. If there are no major repairs such as structural, roof and home systems such as heating, electrical and plumbing or mold problems, then chances are the foreclosure property is a good investment for you.
There are still thousands of loans that are in default or heading for foreclosure that either don’t qualify for modification or won’t be modified. RealtyTrac has estimated that right now nearly 2 million houses in the U.S. are in foreclosure or are bank REO properties, and it is expected that more will follow. Banks have been holding their foreclosure inventory and may now start flooding the market. This is good news for buyers and investors who can take advantage of the affordable housing prices in New Orleans, LA and surrounding areas.
With tax incentives and low interest rates, more first time home buyers and others are expected to take advantage of the $8,000 first time home buyer tax credits and the $6,500 credits for non-first time home buyers this Spring before they end June 30, 2010. In order to qualify for the credits, you must be under contract on or before April 30, 2010. For more information about the first time home buyer credit visit the IRS’s website.