As all homeowners are well aware, it’s been an expensive year. Rates for flood and homeowners insurance have both skyrocketed, and if you haven’t seen your property insurance go up yet and you live in Orleans Parish, 2024 will likely not be bringing good news.
Thanks to a drastic rise in interest rates, paired with these insurance increases, it’s no surprise that home sales have taken a hit. According to the most recent Local Market Update by the New Orleans Metropolitan Association of Realtors, in the New Orleans metropolitan area (which include the parishes of Jefferson, Orleans, St. Bernard, St. Charles, St. John, St. James, St. Tammany, Tangipahoa and Washington) between August 2022 and 2023 listings decreased by 8%, and closed sales numbers are down by 15.8%. Homes that are on the market are selling slower, with average days on market moving from 31 to 49.
The good news for homeowners and bad news for buyers, however, is that prices have remained almost the same.
So, what does the future hold? According to a statement released on Sept. 11 from National Association of Realtors (NAR) Lawrence Yun on the current state of the housing market and market forecast, “One future scenario is some calming in the economy and inflation. That will lead to modestly lower mortgage rates and more buyers will come to the market. Hopefully, homebuilders will ramp up production and we’ll continue to see the repurposing of empty commercial buildings into residential units.” Yun added that, “Home prices are not crashing in this scenario.”
No matter what happens, Yun says one thing is certain — there will be no housing market crash, thanks to low inventory.
For a local view on the real estate and construction marketplace, we’re excited to once again bring you our Biz New Orleans Real Estate Influencers. These professionals hail from many different segments of the marketplace — from affordable housing to commercial construction. In this issue, they share their biggest challenges and the accomplishments they are most looking forward to in the year ahead.
Thanks for reading,
Kimberley Singletary
Editor
Kimberley@BizNewOrleans.com
