A Bucktown resident put their house on the market in January hoping the nice three bedroom home would sell fast after witnessing the explosion of buyers in the housing market since the Pandemic. After sitting on the market for two weeks with no offers Roxanna Campos was surprisingly disappointed.
“I would have thought we’ have multiple offers by now. If we haven’t had any movement in the next week, we might have to rethink things,” said Campos.
Sellers across the country are facing this same situation. They are having to lower their asking prices and agree on concessions to buyers. In 2022 the volume of home sales was down, and homes were sitting on the market longer according to the Gulf South Real Estate Information Network.
Although home prices did keep rising even with the slow down in the market. In fact, the median sale price in the New Orleans metro area was up 7.8% year over year to $277,000. This was up 24% from the pre-pandemic that was reported at $219,400. The biggest drop in pending sales was in outlying Plaquemines, northern St. Tammany, Tangipahoa and the River parishes.
Why is New Orleans seeing a slowdown? This can be blamed on the rising interest rates, high inflation and the big jump in property and flood insurance rates.
“The insurance rates are literally killing deals. I had a quote for a $10,000 premium for property insurance on a 2,800-square-foot house in Metairie. We couldn’t do the deal. The buyer had to walk away from their dream house,” said broker Jiarra Rayford of Rayford Realty.
Even with the total inventory of homes for sale is up due to the cooler market, the home prices in the area are still reflecting the rise. In some areas, like St. Charles Parish, the home prices doubled. Tangipahoa had the biggest increase up 15%, St. Tammany up 11%, Orleans up 5.8%, and Jefferson was up 5.5%.
In the New Orleans metro area, homes that were priced between $224,000- $350,000 sold the quickest. The average days on the market for these homes was around 32 days. Many agents throughout the area are seeing a shift in sellers. They are being a bit more realistic about their pricing.
“It’s not like the market is dead,” Mirambell said. “I had nine offers last week on a house in Old Metairie. Another one in New Orleans had an escalation clause for $40,000 above list price. So, houses that are updated and have a lot of appeal are still flying off the shelf.”