NEW ORLEANS – The New Orleans Metropolitan Association of Realtors (NOMAR) said that home prices in New Orleans rose in the first quarter of 2024, according to the latest quarterly report from the National Association of Realtors.
Compared to one year ago, the median single-family, existing-home price in New Orleans climbed by 4.7% to $277,700.
“After a soft patch this winter, year-over-year sales prices in the ten-parish New Orleans region increased by 0.6% in March and 2.5% in April,” said Dr. Gary Wagner, an economist at the University of Louisiana at Lafayette, in a NOMAR press release. “I would expect summer prices to be between two percent and five percent higher than last summer. Inventory levels have also continued to grow.”
Sales volume, meanwhile, is going the opposite direction.
In April, NAR reported that existing-home sales nationwide retreated 4.3% in March to a seasonally adjusted annual rate of 4.19 million. Sales fell 3.7% from the previous year.
The total number of closed home sales in NOMAR’s 10-parish service area, meanwhile, was 906 in March 2024 compared to 973 in March 2023.
The decrease in sales is no doubt the result of higher interest rates and insurance costs.
“That ‘double whammy’ is making it difficult for first timers to afford to buy,” said Kelleye Rhein, a real estate agent at Rêve Realtors. “My team has noticed our higher-priced listings are moving much faster than homes in the bracket below $450,000. If you can afford to buy, it is a good time even with interest rates because the value of the New Orleans area isn’t going down anytime soon.’
Craig Mirambell, NOMAR president, agrees.
“Addressing affordability remains a priority, particularly as we help consumers contend with the escalating insurance environment,” he said. “We’re committed to advocating for solutions that will help expand access to homeownership.”
Nationally, NAR reports that 93% of metro markets (205 out of 221) posted home price gains in the first quarter of 2024. Thirty percent of the tracked metro areas (63 of 221) experienced double-digit price increases over the same period, up from 15% in the fourth quarter of 2023. Seven percent of markets (15 of 221) experienced home price declines in the first quarter, down from 14% in the previous quarter. The national median single-family existing-home price climbed 5% from one year ago to $389,400.
“Astonishingly, greater than 90% of the country’s metro areas experienced home price growth despite facing the highest mortgage rates in two decades,” said NAR Chief Economist Lawrence Yun.
30-year fixed mortgage rate ranged from 6.60% to 6.94% during the first quarter of the year.
“In the current market, rising prices are the direct result of insufficient housing supply not meeting the full demand,” said Yun.
Home prices increased 11% year-over-year in the Northeast, 7.4% in the Midwest, 7.3% in the West, and 3.3% the South.
NOMAR is a professional trade association serving a 10-parish region in southeast Louisiana. The National Association of Realtors represents 1.5 million members in the residential and commercial real estate industries.
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