To: bentway who wrote (295317 ) 7/17/2006 2:10:40 PM From: tejek Respond to of 1572171 The next real-estate boom: New Orleans By Susan Saulny The New York Times NEW ORLEANS — In a market spurred by speculators and bargain hunters, an extraordinarily large number of houses in the flood-ravaged metropolitan area are being sold, according to real-estate analysts, who say volume and sales prices exceed levels before Hurricane Katrina. The higher prices are largely due to an increase in value in suburban areas, many of which were not heavily flooded, or in dry areas of New Orleans. But flooded houses in the city are being bought as well, often at deep discounts of as much as $50 a square foot less than they would have sold for before the hurricane. "We have a stronger housing market than before," said Wade R. Ragas, professor emeritus of finance at the University of New Orleans and the president of a local consulting firm, Real Property Associates. "The strongest buying activity is, in general, closest to where it did not flood or where there was under 2 feet of water." Across the nine-parish region that includes New Orleans, 7,506 single-family homes were sold between January and the end of June, compared with 6,449 in the same period last year, according to statistics from real-estate groups. The average price so far this year is $221,244, compared with $193,097 in the same period last year. The renewed interest in buying and selling and renovating has confounded some people who thought the housing market would be crippled for years. But it is just one of many counterintuitive contrasts that are defining the area and making easy predictions unreliable. Some experts say speculators are taking a significant risk. In addition, there has been a 20 percent increase in the cost of construction materials, and the city continues to have a shortage of workers, experts say. Copyright © 2006 The Seattle Times Companythestreet.com