Luxury Real Estate Developments
Real Estate Crash of 2008
2008 was a year that saw huge changes in the property market in New Orleans as some people lost their homes overnight. Some lost all their assets. Some even became homeless in the process. As more and more foreclosures took place, there were so many empty homes that luxury property developers had no reason to continue building new luxury homes. Luxury real estate developments came to a stand still. After all, who would have the money to buy property in such a real estate climate?
Real Estate Recovery
Today, things are different, as the markets have slowly recovered and interest rates are still at historic lows, luxury real estate in New Orleans has made a comeback. Developers are now confident that they can attract buyers for the higher priced homes and luxury condominiums. People once again have confidence in the economy and are willing to make larger investments. They have saved enough to be able to put down substantial down payments for the mortgage.
Mortgage Interest Rates
Interest rates are another reason why people are buying luxury real estate in New Orleans today. Extremely low mortgage interest rates, even on luxury real estate, has fulled the recovery. With interest rates at historical lows, means that snapping up a property right now makes more sense than if you wait for later interest rages may have adjusted upwards by then. Most economist expect the Federal Reserve to raise interest rates towards the end of 2015. When the Fed raises short term interest rates to banks, there is a trickle down effect into the long term mortgage market. It is safe to say that when the Federal Reserve raises their rates, it will be in extremely small increments as to not affect the housing market and overall economy. So even though we expect rates to go up towards the end of 2015, it should have a marginal effect on the real estate market as a hole.
Luxury Real Estate Investments
You may be wondering why buying luxury real estate is such a good idea. First, people like what comes with it. You get a carefully and beautifully constructed space that you can call home. In addition to that, you will make a lot more money when you sell than if you invest in a regular property. Luxury waterfront living has many perks. At the drop of a hat you can jump on your boat as many waterfront luxury developments have boat slips and even dry boat storage. You are out in the open, away from crowded real estate developments. You have the privacy that so many people crave for. You can do whatever you like on your property and not worry about peeping Tom neighbors. If you can afford to invest in New Orleans luxury real estate, it is high time that you did so.
Luxury real estate is back. You should expect to see many new developments hit the market with a variety of luxury amenities to fit every taste. The luxury real estate market should continue to grow for many years to come