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Prices Improve Despite Supplies of Homes in Bank Foreclosure Listings

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By : John Cutts    99 or more times read
The high number of homes in bank foreclosure listings in New Orleans, Louisiana, has been largely blamed for the decline in values of properties in the area. However, one local market was able to buck the trend and posted a higher home price average for 2010.

As New Orleans foreclosures rise, prices of homes declined, with values of properties starting their descent in 2008. For majority of the metro area's local markets, this price decline continued until last year, but not for Orleans Parish. The area posted a 9% gain in housing prices in 2010, while prices for the whole New Orleans metro area declined by 4% over the same period.

According to housing market analysts, despite having its share of Louisiana foreclosures, the parish was able to benefit from more people moving into the area to live in homes closer to their jobs and from the overall optimism that Orleans Parish is looking at a brighter future than other cities in the region. In addition, the parish has good housing units on offer and most consider its schools quality institutions.

Housing market observers stated that other areas continue to suffer from huge supplies of homes in bank foreclosure listings and from the effects of the oil spill disaster. Some markets are still feeling the aftershock of Hurricane Katrina a few years after the disaster occurred. For the whole metro area, St. Bernard reportedly had the worst housing market in terms of prices.

Home prices in St. Bernard dropped by 13% last year, with most housing experts attributing the value decline to the fact that the place built the most number of residential properties after the hurricane, which eventually ended empty or under listing of REO properties since the market was unable to provide enough demand. In Jefferson, prices dropped by 8% in 2010, while St. Tammany Parish saw prices falling by 5% over the same period.

Despite the continuous drop in prices, local realtors believe that the market is getting better as sales of non-foreclosed and homes in bank foreclosure listings rose last year in the region. Total housing units sold in 2010 was 640 more than the total sold in 2009, with the biggest share accounted for by St. Tammany Parish.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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