Trulia: New Orleans Misses The Starter Home Nationwide Mismatch Trend

NEW ORLEANS – Across the country, home seekers are experiencing a mismatched marketplace for their real estate needs. That according to residential real estate website Trulia blogger Dina Hanna who said the widening gap between searches and listings emphasizes the struggles potential buyers have faced over the 2016-2017 Q4 season. However, she said in New Orleans buyers will find relief in the housing market where demand and inventory are well balanced.

         On behalf of Trulia, Harris Poll commissioned a survey of Americans exclusively in the market to buy a home in the last two years. Hanna said more than half stated the process was fairly competitive; especially for those looking to make their debut, where the mismatched market seemed to hurt their chances of entering at all.

         Nationally, 60 percent of buyers were searching for starter homes but only 40 percent of the listings are starter homes, she said. Constricted inventory throughout the country, especially for starter and trade-up homes, and an 11-point surplus in the premium price category, showed that there’s an unbalanced market, she said.

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         “Starter home and trade-up homes combined for 26.9 percent of all searches in Q4, whereas only 21.2 percent of listings were at that price level,” Hanna said. “On the flip side, 54.4 percent of listings were in the premium category, but only 43.5 percent of searches were in the same price range.”

         Specifically, starter homes in Raleigh, North Carolina, and Colorado Springs, Colorado, are feeling the tightest gap with 14 and 13.1 percentage points between search volume and listing availability, Hanna said. On the other hand, Philadelphia, Pennsylvania has a surplus of starter listings despite the general trend.

         Hanna said the search versus listing numbers indicate that New Orleans follows Philadelphia’s healthy starter home market this quarter, with more than 20 percent of listings categorized as starter homes, and 16 percent of searches in that category. She said it also replicates the premium market, with more searches (60.7 percent) than available listings (56.9 percent).

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         “But even if a homebuyer is not in the market for a starter home, buying is 51.2 percent cheaper than renting in New Orleans, with a variety of options available,” Hanna said. “For example, in a few of the top diverse neighborhoods in New Orleans, starter, premium and trade-up homes are available and ready for the taking. Buyers should consider Uptown, Central Business District, Mid-City and Metairie.”

         “Although the median listing price in Uptown is in the high $800,000  range, there are a variety of options for homebuyers starting as low as $300,000,” she said. “Happily, the assortment of listings are all in a highly-sought out region, with low crime rates and great schools within driving distance.”

         Hanna said the average listing price for the Central Business District is just under $600,000, and in Mid-City several size and price options are available to home-seekers.

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         Hanna said in Metairie real estate along Lake Pontchartrain is affordable with a median listing price of $309,000, and also boasts top rated schools and views.

         “The mismatch market may have hit Louisiana’s neighbors, but New Orleans seems to have missed the ship, indicating that it’s a great time to buy,” Hanna said.

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