These homes represent the top sales for the week of October 29-November 4
These homes represent the top sales for the week of October 29-November 4
The September New Orleans metro home real estate numbers are in, and the local market continues to “go toe to toe in a 12-round fight with two of the biggest fighters in the industry – highest interest rates in 20 years, combined with the highest insurance prices and deductibles seen since Hurricane Katrina, if not in the history of our market,” said Craig Mirambell, president/broker of Mirambell Realty and incoming Board President of the New Orleans Metropolitan Association of Realtors (NOMAR).
NOMAR reports that the New Orleans metro average home sales price in September 2023 was $319,902, down just 3.7% year-over-year from $332,120 in September 2022, according to the September 2023 “Local Market Update”. The average sales price is down 3.6% YTD at $329,711 through the first nine months, compared to $342,036 in the first nine months in 2022.
“To be down just 3.6% on average across metro New Orleans is negligible,” Mirambell said. “Our housing market amidst all the obstacles we are facing has squared up and held its own. Homes are still moving, equity is holding strong, and insurance competition is slowly coming into the market to help lower premiums.”
Much like the national trend, the number of closed sales remains down across New Orleans metro. In September 2023, there were 976 closed sales, down 16.9% YOY from the September 2022 number of 1,175. Closed sales YTD is down 21.8% with 9,617 homes sold in New Orleans Metro through the first nine months of 2023, compared to 12,296 in the same timeframe in 2022.
There were 1,669 new listings in New Orleans Metro in September 2023, down 3.6% YOY from 1,731 in September 2022. Through the first nine months of 2023, there have been 16,008 new listings in New Orleans Metro. That is down 6.7% from the same timeframe of 2022 when new listings totaled 17,166.
In September 2023, homes spent an average days on market of 55, up 57.1% YOY from 35 DOM in September 2022. Through the first nine months of 2023, homes have spent an average of 50 DOM. That is up 61.3% compared to the same timeframe in 2022 of 31 DOM.
“Yes, its slower, less homes are being listed, with that less homes are sold, but the market is going to finish the fight and hope to see a brighter 2024 with lower interest rates and lower insurance premiums — even if not substantial decreases, any retreat in those numbers will only help our homeowners,” Mirambell said.
Orleans Parish had the highest average sales price in September among the 10 parishes reported at $413,976, down 7.2% YOY. St. Tammany Parish had the highest number of closed sales with 265 in September, followed by 247 closed sales in Jefferson Parish and 230 closed sales in Orleans Parish. St. Charles Parish saw a 23.3% increase in YOY average sales price for September, vaulting to $307,424.
NOMAR considers New Orleans metro as 10 parishes – Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. John, St. James, St. Tammany, Tangipahoa, and Washington.
You can find all the parish reports here.
Despite all the curveballs thrown at the New Orleans metro area housing market – soaring homeowners insurance and flood insurance quotes, higher interest rates, and a growing inflation problem – the average home sales price has remained consistently steady.
The average home sales price is $318,104, down 0.6% year-over-year from $319,963 in August 2022, according to the August 2023 “Local Market Update” published by NOMAR (New Orleans Metropolitan Association of Realtors). The average sales price is down 3.5% YTD at $331,080 through the first eight months, compared to $343,085 in the first eight months in 2022.
“It has been impressive that despite all of the factors we are up against, including homeowners insurance still being our number one hurdle locally, the average sales price remains strong and continues to hold steady in New Orleans. We are holding our equity as homeowners,” said Craig Mirambell, president/broker of Mirambell Realty and incoming NOMAR Board President.
In its monthly report, NOMAR considers New Orleans Metro as 10 parishes – Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. John, St. James, St. Tammany, Tangipahoa, and Washington. Orleans Parish, with an average sales price of $410,878, had the highest average sales price in August among the 10 parishes reported. Through the first eight months, the average Orleans Parish sales price stands at $434,737, down 5.2% from the same timeframe in 2022. St. Tammany Parish had the highest number of closed sales in August at 324.
The number of closed sales remains down across the New Orleans metro area. In August 2023, there were 1,159 closed sales, down 1.2% YOY from the August 2022 number of 1,173. Closed sales YTD is down 17.6% with 9,165 homes sold in the New Orleans metro area through the first eight months of 2023, compared to 11,127 in the same timeframe in 2022.
Inventory down; days on market up
New listings are down, while days on the market have increased in New Orleans metro. There were 1,731 new listings in August 2023, down 8% YOY from 1,881 in August 2022. Through the eight seven months of 2023, there have been 14,310 new listings in New Orleans Metro. That is down 7.3% from the same timeframe of 2022 when new listings totaled 15,434.
In August 2023, homes spent an average days on market of 49, up 58.1% YOY from 31 DOM in August 2022. Through the first eight months of 2023, homes have spent an average of 49 DOM. That is up 63.3% compared to the same timeframe in 2022 of 30 DOM.
“There is definitely a housing shortage across New Orleans than in years past, and that’s reflective of the low inventory across the national market as well,” Mirambell said.
Mirambell said he just returned from a national realtors conference in Chicago, and he said the keynote economist predicted that interest rates may take one more uptick before the end of the year, and then in 2024, those rates will hold steady. “He was bullish that not a lot of inventory and consistent interest rates will continue to result in a steady average sales price for your home, even in what appears to be a slower market,” Mirambell said. “I think we will see the same across New Orleans for the near future, and that can even be improved if we get more competition in the market for homeowners insurance.”
Below are separate parish statistics with links to each parish’s NOMAR August 2023 report. You can find all the parish reports at https://gsrein-public.stats.showingtime.com/reports.
One of the “coolest” sales of Michael Styles’ career as a realtor had a bit of a full-circle feeling.
The Metairie Club Estates home of former New Orleans Pelican and current Los Angeles Lakers’ superstar Anthony Davis – 9 Forrest Court – sold on Sept. 1 for $1.77 million.
Styles was the sales agent on the transaction. Ten years prior, Styles worked as an account executive for the then New Orleans Hornets, which drafted Davis before the 2012-2013 NBA season. Styles was in New York sitting behind Davis’ dad when Davis was called on stage.
“This is definitely one of the coolest sales of my career. It is very interesting how it all came full circle with Anthony Davis,” said Styles, a realtor with Engel & Voelkers New Orleans. “The home is in a highly coveted, private-gated community with a landscaped backyard and pool overlooking the Metairie Country Club golf course. My client is a local resident, huge golf fan, big local sports fan, and likes to host gatherings. He needed more space for a primary residence, and this property is perfect for him.” Listing agent Patti Faulder, a realtor with Christian Shane Properties, represented Davis on the Sept. 1 transaction. Faulder also represented Davis in his original purchase of 9 Forrest Court in 2013. Since Davis was traded to the Lakers in 2019, the home has been rented out to local athletes and stayed in by Davis’ family members, said Faulder.
“Anthony Davis is a pleasure to represent; he had a beautiful property that offers an exquisite living experience with postcard-perfect views of 180-feet golf course frontage and a backyard that feels like an outdoor oasis,” Faulder said. “It’s rare that this kind of Metairie golf course property in a very desirable, private gated community comes on the market, and I’m excited for Anthony to pass it on to a new owner who will make it his own.”
Post-Katrina, custom-built home in a private, gated community
A post-Katrina build in 2006, 9 Forrest Court is a custom-built home – 5 bedrooms, 3.5 bathrooms, 4,800 living, and 6,540 total square feet. “It was a no expense spared custom-built home that features uncompromising quality on an oversized lot,” Faulder said. The first floor features a family room and kitchen that overlooks the patio, backyard, and golf course. The backyard has a pool, veranda, and patio for al
fresco dining. The kitchen has a Sub-Zero fridge and 60” 8-burner Wolf range. The first floor has a living room, dining room, primary bedroom, office
room, brick doors, and exposed beams. The adjoining garage is an impressive size, measuring 25’5”x22’3”.
The second floor has four bedrooms, and an outside balcony that spans the entire floor measuring 44’3”x5’10”. There is an expansive media room with
multi-level seating on the third floor and an adjoining bathroom.
Metairie Club Estates is a controlled access community of about 60 residential homes. The community is owner-managed by Metairie Club Estates
Homeowners Association. It is adjacent to Airline Drive and Metairie Country Club. “Even though it is a private, gated community, inside is a very social
community with a lot of long-term residents,” Faulder said. “That concept of a gated, private community is still a major appeal for homeowners.”
Styles said higher-end properties are still maintaining their momentum in the greater New Orleans real estate market. “These higher-priced homes tend to be impervious to the challenges of interest rates and insurance prices that currently affect most transactions,” he said. “What also helps the market are properties that are in good condition, ready to move in, and priced well.”
Other high priced home sales in the past week: Address: 343 Elmeer Ave., Metairie, 70005 Sales price: $940,000
List price: $1,545,000
Date sold: Aug. 29 Days On Market: 59
Listing agent: David Claus (https://gnorealty.com/gno-realty-agents/david-claus/), GNO Realty LLC
Sales agent: Michelle Rousse (https://www.mbellrealty.com/rousse-michelle/), Mirambell Realty
A 5-bedroom, 3.5 -bathroom, 3,925-square-foot home at 343 Elmeer Ave. in Metairie sold for $1,415,000 on Aug. 29 after spending 59 days on the market.
Luxury home featured in 2023 Parade of Homes situated in a sought-after location, close to renowned schools, upscale shopping, and fine dining establishments; home has high-end fixtures, finishes, and upgrades
First floor has grand foyer that leads to living space featuring soaring ceilings and custom-designed elements, including unique ceiling treatments; spacious and opulent primary bedroom retreat has an en-suite bathroom; replace in the living room; gourmet kitchen has stunning countertops and a hidden walk-in pantry with wine storage; and attached garage features a mudroom for organization and storage. Second floor has four additional generously, sized bedrooms; versatile loft area offers possibilities for a game room, a second office space, or a reading nook.
Address: 1520 Washington Ave., New Orleans, 70130
Sales price: $1,325,000
List price: $1,375,000
Date sold: Aug. 28
Days On Market: 16
Listing agents: Jennifer Saltaformaggio (https://jennifersaltaformaggio.latter-blum.com/) and Sam Poche’ (https://www.latter-blum.com/agent- bio/samarapoche), Latter & Blum
Sales agent: Shaun McCarthy (https://www.mccarthygrouprealtors.com/agents/shaun-mccarthy/), McCarthy Group REALTORS
A 4 bedroom, 4-bathroom, 3,523-square-foot, New Orleans Garden District home at 1520 Washington Ave. sold for $1,325,000 on Aug. 28 after 16 days on the market.
An 1860 New Orleans, Garden District Victorian home, on the tree-lined Washington Ave., is one-half block off St. Charles Ave. and the streetcar line and on the parade route. Restored in 2014, the home is recognized by the New Orleans Historic District Landmarks Commission as a contributing structure of historical significance.
Formal living (or office) and custom-painted dining room separated by original cypress pocket doors; featured attributes include decorative replaces, original ceiling medallions, crown & picture moldings, sparkling chandeliers, high ceilings, and abundant natural light; luxurious kitchen with stainless Thermador & Bertazzoni appliances, marble countertops and backsplash, and an open floor plan expanding into a large living room adds a modern touch; full bathroom downstairs has marble and stone; French doors lead out to the backyard that has an outdoor kitchen with Blaze grill and Kamado Joe smoker, and built-in kegerator; Tuff Shed provides storage.
Four bedrooms and three full baths upstairs; primary bedroom features a spa-like en suite bath, massive walk-in custom closet and balcony views; third floor bedroom can function as a home office, gym, playroom, etc.
Information provided by Kelleye Rhein & Stephan Mock of Reve Realtors.
The average home sales price in the New Orleans metro area is holding steady – “a testament there is no bubble and homeowners are still seeing equity increases in their homes,” says Craig Mirambell, president/broker of Mirambell Realty, and incoming board president of the New Orleans Metropolitan Association of Realtors (NOMAR).
NOMAR published its July 2023 “Local Market Update,” which shows that the average sales price in July 2023 was $348,756, up 4.6% year-over-year from $333,518 in July 2022. The average sales price is only 3.7% year-to-date at $333,332 through the first seven months of 2023, compared to $346,188 in the first seven months of 2022.
“Sellers are not in any sort of desperation mode and are holding firm to their value they could had a year ago. Also, rental prices have not decreased at all, in fact have risen to exceptionally high prices,” Mirambell said. “With high rent prices, the appeal to buy a home is higher than ever, with the other option being paying top dollar for rent.”
NOMAR considers New Orleans metro as 10 parishes – Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. John, St. James, St. Tammany, Tangipahoa, and Washington.
Higher priced homes, second homes, and investment properties are doing well, said Mirambell. “Higher priced homes and second homes are still selling aggressively quick and for top dollar,” he said. “These buyers are less sensitive to higher interest rates and incredibly ridiculous insurance prices. The same can be said for investment properties – with rents being so high right now, investment owners are making up for higher rates and insurance increases.”
Photo courtesy DepositPhotos
Head over to https://neworleanscitybusiness.com/ for more
When Roxanna Campos and her husband put their 40-year-old Bucktown house on the market in January, they thought the three-bedroom brick Ranch would be a quick sell.
She had reason to be optimistic. As a local real estate agent, Campos had a front-row seat to the bidding wars and buying frenzy that pushed up home prices across the metro area by more than 25%, on average, since 2019.
But it’s been two weeks since her listing, and despite positive signals at the open house for agents and brokers, Campos hasn’t gotten a single offer.
“I would have thought we’d have multiple offers by now,” said Campos, who is selling because of an upcoming move to Florida. “If we haven’t had any movement in the next week, we might have to rethink things.”
Campos’ experience is not unique. Across the metro area, sellers, who spent the past two years in the catbird seat, are lowering their asking prices and making concessions to buyers as the white-hot housing market of 2020-2021 continues to cool.
According to the annual report from the Gulf South Real Estate Information Network, the volume of home sales in 2022 was down, inventory of available homes was up, and houses sat for longer on the market.
True, home prices continued to rise. The median sale price across the metro area for a single-family home in average or better condition was up 7.8% last year over the year before to nearly $277,000, and up more than 24% over 2019’s pre- pandemic price of $219,400.
But if you factor in the nearly 7% inflation rate, those increases are not as impressive as they would have been a few years ago, when the rate of inflation was less than 2%.
Experts attribute the slowdown, as they have for months, to the combined toll of three factors: higher interest rates — which nearly doubled to more than 7% by mid-2022, from less than 4% when the year began; inflation —which was also high in 2022; and huge premium increases in property and flood insurance rates.
As they look to 2023, they’re not optimistic things will change anytime soon.
“The insurance rates are literally killing deals,” said broker Jiarra Rayford of Rayford Realty. “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.”
Overall, the numbers can seem confusing because while some indicators suggest a slowing market, home sale prices in 2022 continued to rise, just not as dramatically as the 9.3% jump they experienced between 2020 and 2021.
But the overall picture shows home prices are no longer trending steadily higher as they did through much of the pandemic.
On one hand, pending sales were down 13.5% in 2022 over 2021 and closed deals were down 12.6% during the same period. Outlying areas in Plaquemines, northern St. Tammany, Tangipahoa and the River parishes saw the most significant drops in activity.
Also signaling a cooling market, the total inventory of available homes was up 68% to 3,339 from 1,987. Outlying areas had more available inventory than most neighborhoods in the city or in the heart of Metairie.
Paradoxically, however, home prices continued to rise. Overall, every parish in the 10-parish region saw the median sale price of a home increase over the year before — in many cases, by double digits — except for St. Charles Parish, which was hit hard by Hurricane Ida in 2021 and saw its median home prices decline slightly.
The biggest increase in median sale prices came in Tangipahoa, up nearly 15% and St. Tammany, up more than 11%. Orleans and Jefferson parish prices saw more modest increases of 5.8% and 5.5%, respectively, which was below the rate of inflation.
While the numbers varied from one part of the metro area to the next, real estate experts say in general, the price increases reFLect spikes from the first half of the year. As interest rate and insurance price hikes began to exert pressure on the market last summer, prices began to come down slightly or level out.
“We were still riding high in the first half of 2022,” said realtor Craig Mirambell, whose Mirambell Realty specializes in Metairie. “It really shifted mid year.”
Data indicates that modestly priced homes performed better throughout the year than pricier properties. Homes priced between $224,000-$350,000, sold more quickly than those in any other price range, spending just 32 days on average on the market.
Closing costs and creative deals
Agents say they can fell the shift in the market by the concessions that sellers are now willing to make.
“Buyers are asking for more and sellers are willing to give a little more,” Rayford said. “I wrote a contract last week where the buyer asked for closing costs. Last year that was a no no.”
Sellers and their agents are also being creative about helping buyers shoulder the cost of higher interest rates. Broker Joyce Delery, who co-owns Engels and Völker New Orleans, said she has seen some sellers offer $10,000 to help “buy down” interest rates.
“We’re also seeing them be a little more realistic about their pricing," Delery said.
Delery and others expect that adjustments in the market will even out without causing significant disruptions. They’re more concerned about the effects of skyrocketing insurance premiums, which have more than doubled for some homeowners as dozens of carriers have stopped writing policies in the state.
Campos believes insurance issues are largely to blame for the lack of offers on her house. Her insurance premiums have more than tripled to $8,600 since she and her husband bought the house in 2014.
“Homes just two blocks on the other side of the (West Esplanade) canal are much less to insure, even though we’ve never flooded,” she said. “We don’t know what’s going on and the insurance companies won’t even talk to you.”
Agents and brokers expect those pressure points to continue slowing the market in 2023. That said, they’re still seeing the occasional crazy demand for mint-condition houses in desirable neighborhoods.
“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.”
The current state of the New Orleans-area residential real estate market isn’t a typical one, according to local realtors, but it can still be viable for sellers.
The most recent numbers from the New Orleans Metropolitan Association of Realtors show new listings in August were up nearly 8% from August 2021, while closed sales were down 8.1%. Homes spent an average of 30 days on the market, compared to 29 last August. The average sales price rose 3.7% to $324,125. The data includes Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. John, St. James, St. Tammany, Tangipahoa and Washington parishes.
Craig Mirambell, NOMAR board secretary/treasurer and president/broker of Mirambell Realty, said the local market shows no signs of consistency, with some homes lasting 90 days and others in the same neighborhood selling quickly.
“It’s the strangest market I’ve ever seen in my 20 years of being a broker in real estate,” he said. “Typically, when the market turns south and goes bad, everything kind of turns bad; every house doesn’t sell and every house’s days on market rises.”
These days, it’s not necessarily a seller’s market. But a desirable home that’s updated, renovated and priced appropriately in a high-demand area is more likely to find a buyer, he said.
Kelli Walker Starrett, who was recently named the new CEO of NOMAR following the retirement of longtime leader Missy Whittington, agreed that the current market is “weird.”
“It’s not something we’ve usually seen when you have sort of the peak that we had, with as high as we were seeing sales prices for properties and multiple offers and multiple cash offers, and it was a very strange spot for us,” she said. “I think we naturally are hitting where things cool a little bit and they steady out.”
Nationwide, rising mortgage rates and declining home sales have signaled the end of a hot housing market. The New Orleans-Metairie area ranks No. 11 among markets that have cooled off the most, according to a new report from SmartAsset that looks at price reductions and decreased demand.
As of Tuesday, current rates in Louisiana stood at 6.95% for a 30-year fixed mortgage, and 6.24% for a 15-year fixed, according to Bankrate.
But the local market can still be friendly to sellers, Starrett said.
“There are still going to be people that want to buy a house,” she said. “There are going to be people that want to sell a house, and I encourage them to still do that. You don’t want somebody locked into something when they might need to make a change just because they feel like the market isn’t right for them. There’s always going to be a buyer out there.”
NOMAR numbers show that in Orleans Parish, there were 503 new listings in August, a 13% jump from 445 in August 2021. Closed sales were down 6.5%, and the average sales prices dropped 3.3% to $413,194. Days on the market dropped from 49 to 37.
There were 518 new listings in Jefferson Parish in August, up 5.3% from August 2021. Closed sales were up 2%, with the average sales price increasing to $300,142 – a 4.7% jump. Days on the market increased from 22 to 27.
St. Tammany Parish reported 431 new listings in August compared to 427 in August 2021. Closed sales were at 352, a 12.2% jump. The average sales prices also increased to $331,211, a 9.9% jump. Days on the market rose from 20 to 32.
To view all parishes in this month’s NOMAR “Local Market Update,” visit www.nomar.org.
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