New Orleans Real Estate Market Booming
Tuesday, May 9th, 2006The 2,200-square-foot house promises three spacious bedrooms and two- and-a-half baths _ a bargain at $175,000. Except for the fact that the home, located in one of this city’s previously elegant neighborhoods, has been gutted to the studs and has no drywall, no wallboard, no fixtures.
“Home was flooded by Katrina,” reads the advertisement posted by the listing agent at one of the city’s largest real estate firms. “Ready to turn into your dream home.”
The pitch is less far-fetched than it may seem: Although vast swaths of this hurricane-battered city are still without electricity and basic services, residential real estate sales are at a fever pitch, a shining spot in an otherwise struggling economy.
For the first quarter of the year, sales of single-family homes in the greater New Orleans area zoomed to $826 million, a jump of 60 percent over the first quarter of 2005, when sales totaled $517 million, according to New Orleans Metropolitan Association of Realtors; 3,829 residential units were sold, 960 more than the same period in 2005.
Experts say there’s nothing to be surprised about: One of the ironies of natural disasters is they’re often good for real estate. It’s a pattern real estate professionals witnessed in Florida after Hurricane Andrew and in Los Angeles in the aftermath of the Northridge earthquake.
“To use a terrible analogy, it’s like watching ‘Gone with the Wind’ for the fifth time,” said Arthur Sterbcow, president of Latter & Blum Inc., the 90-year-old real estate firm based in New Orleans. “It’s completely predictable. The market reacts the same way each time. It’s like watching a football game and having the play book in your hands.”
breitbart.com
