Gumbo of ingredients for a healthy market in St. Tammany

I read an article by L. Mullins of U.S. News & Report which stated, "With lower home prices and attractive mortgage rates 2009 will present plenty of bargains for real estate shoppers. But as the historic bust continues, Americans everywhere are learning a painful lesson about home buying: property values don't always increase. As such, anyone looking to purchase a home this year should make sure they're buying into a community that can support long term value." The top ingredients for a strong and healthy market included:

1. A well groomed neighborhood.
2. Good schools
3. Low crime
4. Availability of close public transportation
5. Favorable population trends (steady population growth)
6. Healthy employment landscape

It takes a gumbo of ingredients to make a healthy market and St. Tammany parish has been very fortunate. Our community has at least five of these points listed which contribute to a healthy real estate market. I do not agree however, with the painful lesson about buying property in that values don't always increase. Generally speaking property values do increase over time. Your rate of appreciation may be another matter. We do not always see the types of increase in value by leaps and bounds over night as we did in the post Katrina period.

For example my first home purchase was in the 1980's which was another tough time for the Real Estate Market. My husband and I financed at 11.5% and we thought we did well because there were other people out there paying 12% at the time. We put down 5% as first time home buyers and paid on that home for almost 13 years unable to refinance because we needed 20% equity in the home and market values did not support that amount. After a lot of sweat equity that we put into that house we finally sold our home in 1998. The market had turned around and it was a Seller's market in my pocket of the world on the Southshore and a Buyer's market where we were moving to on the Northshore. I could not have timed it better if I wanted to. This was before I became an Agent and yes, I did hire a professional agent. We sold our home in one week. The reason that little home sold in that amount of time was due to at least five of the six ingredients listed on that healthy market list. Timing, pricing and condition were also something that was key and of course the ability to wait it out until the market was right for us to sell.

If you can not wait it out until the market turns around in your favor I recommend you price well, have a good clean product, and hire a professional for guidance.