The New Orleans real estate market is healthy…
This past week, we saw interest rates hit a new all-time low and a 59% increase in new contracts over two weeks ago!
During the past 7 days we have seen 264 homes listed for sale and over 350 accepted contracts. Historically low interest rates and strong buyer demand are driving competition for a limited number of listings.
Real Estate Deemed An Essential Service in Louisiana
Louisiana shut down restaurants, bars, and movie theaters on March 16th, now over 6 weeks ago. This has drastically impacted the New Orleans service-based economy.
The good news is that other industries in the city have been able to adapt their operations and continue operating.
Real estate is one of the industries deemed an essential service by the state of Louisiana. Mortgage companies, title companies, and Realtors have made adjustments to comply with CDC guidelines. The Sibley Group is currently servicing clients both in-person and virtually through online access to listings, virtual showings, and electronically signing documents.
Moderate Decline In Sales Followed By A Rapid Recovery
Louisiana’s real estate market has largely avoided significant declines when compared to other areas of the country. Some states have mandated a complete shut down of real estate activities. This is not the case in Louisiana.
The number of sales in April were down 23% when compared to the same month last year. Considering the circumstances, this is very encouraging. More recently, we have seen a notable surge in showings and accepted contracts over the last 2 weeks.
The first 4 weeks following the shutdown (March 16 – April 13), we saw a moderate decline in new contracts.
In the most recent two weeks, we have seen a 59% increase in new contracts being written. News of the economy re-opening and a decline in the new cases of COVID-19 seem to be giving buyers confidence.
An Opportunity For Sellers
The surge in new contracts has buyers scooping up much of the currently available listing inventory (which was already limited). The new contracts are outpacing new listings hitting the market.
For Sellers, this is a great opportunity to list your property before the supply catches up with buyer demand. If the current trend continues, we will be seeing even more multiple offer situations.
The Opportunity For Buyers
The opportunity for buyers is in the form of all-time low interest rates! The average interest rate for a 30-year fixed-rate mortgage is at 3.23%. This is the lowest we have ever seen interest rates.
Buyers whom have not been financially impacted by COVID-19 simply need to find a home to purchase. In a time of reduced listing inventory, this is still possible with a little patience.
A buyer that was planning to spend $360,000 last year can now afford $400,000! Over $40,000 more with the same monthly payment!
The good news for buyers is that home prices have not increased nearly this much. So, buyers have the opportunity to save a nice chunk of interest over the next 30 years.
Whether you are in the market to buy or sell, there are unique opportunities right now.
Let’s discuss your personal circumstances and how these opportunities apply to you! Call us at 504.408.2133 or send us a message today.