Are the Home Prices Dropping Faster Than We Expected?
The second quarter of 2023 in Louisiana saw a drop in home prices. In fact, this is the fourth quarter in a row that prices have declined. According to professionals in the industry, year-over-year growth was at 0.4% in the second quarter, down from 5% in the first quarter and the high of 13.8% in the second quarter of 2022. Growth over the next four quarters is expected to be flat
The good news for Louisiana is that employment looks better and it is estimated that the state will add another 27,000 jobs over the next year. Job growth plans to be around 2% over the next half a year. The gains are predicted to be the best in Baton Rouge, New Orleans and Alexandria. Louisiana’s unemployment rate will also remain flat for the next year and is set at 3.6%.
All over the country consumer spending is still going strong with an inflation-adjusted disposable income growth that is over 4% in the past couple of months. Household purchases of durable goods are up as well and are projected to stay strong for the next three years.
“Home price growth statewide has slowed more than projected in each of the last two quarters,” reports Gary Wagner with University of Louisiana Lafayette.