In a report that measures population growth, parish employment, apartment rents and sales tax collections, the St. Tammany Parish Economic Development Foundation found that in the past 10 years, the Northshore has experienced a rise and fall in economic conditions in regards to the housing market. Just after Hurricane Katrina, there was a kind of “Northshore Flight” that occurred for people displaced by the hurricane. Because of the insurmountable demand for a place to live, the land and homes in St. Tammany Parish were “snatched up” at a pace that exceeded any population growth before or since. During a rigorous two years of home sales from 2005 to 2007, St. Tammany Parish’s average home values peaked at $248,682. Then, as New Orleans began a steady recovery, the demand for housing on the Northshore tapered off, literally into the Recession.
The new study has nothing but good news for the real estate market in St. Tammany Parish. It states that according to statistics from 2009 – 2013, the market has stabilized. Average home values are at $225,540, up from $212,927 in 2012. Greater news is that building permits have increased by a whopping 78% from 2009 to 2013. Also, new homes sales have increased by 44% in the same period of time. According to the National Association of Home Builders, on a national level, the overall “time on the market” or the month’s supply of homes has leveled off to 4 – 6 months, which means there is a 4 to 6-month supply of homes available indicating a healthy housing market.
“Hurricane Katrina changed the market,” said the foundation’s CEO Brenda Bertus. “Housing sales rose dramatically in the wake of the storm until 2007, when sales and construction both dropped significantly. It now appears that St. Tammany’s housing market is stabilizing.”
The health of the housing market seems to be intact in that reports are coming out of Washington D.C. that plans for down payment assistance and new parameters on FHA loans are being discussed as well as looser credit regulations now that the mortgage industry has been pulled back on track. Also, good news locally for local builders and developers is that the population in St. Tammany Parish has risen from 205,883 to 242,333 in the last 10 years – definitely increasing the demand for housing and new homes for sale. More good news is that the average income of a family in St. Tammany Parish has grown just over 45% in 10 years rising from $67,273 to $97,639. With families who can afford a mortgage, loosening credit conditions, down payment assistance, more demand than ever for new homes, and the increase in new home sales, St. Tammany Parish’s real estate industry faces a bright future going into 2015. To find out more about new homes for sale and new lots for sale in Madisonville, Louisiana, Contact Bedico Creek at 985-845-4200 or E-mail Info@LiveBedico.com.
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