How high can home prices go in New Orleans? In April, they climbed above an average of $350,000 in the New Orleans metro area.
According to the April 2024 statistics published by New Orleans Metropolitan Association of Realtors (NOMAR) in its monthly report, the average home sales price in the New Orleans metro area stands at $356,701, a 6.1% increase year-over-year and a 6.4% increase year-to-date.
NOMAR considers New Orleans metro as 10 parishes – Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. John, St. James, St. Tammany, Tangipahoa, and Washington.
“There is increased demand amongst buyers and a limited supply of homes that fit their needs. With that, home values have continued to be steady with a bit of an uptick,” said Craig Mirambell, NOMAR board president and president/broker of Mirambell Realty. “Investing in a home in Metro New Orleans has proven and continues to be a great investment for homeowners’ wealth building. While it’s challenging to predict the exact ceiling for home prices, factors such as economic stability, job growth, insurance costs, and interest rates will continue to play pivotal roles.”
In NOMAR’s monthly parish-by-parish breakdown, Orleans Parish had the biggest jump in average sales price, rising to an average of $518,584 in April 2024, up 16% Y-o-Y and up 11.4% YTD. However, Mirambell noted that the significant increase is a bit of an anomaly with five homes in Orleans Parish selling for over $3 million in April, including 479 Audubon St., which sold for over $6.5 million and was featured on Commission Accomplished.
Comparatively in March, the highest sales price in Orleans Parish was approximately $2 million. “That’s not to say we haven’t seen a consistent climb, but having five large sales in April kicked the average sales price up, while the median ($335,000 in Orleans Parish) stayed relatively similar,” he said.
Mirambell said the biggest positive from the April report and previous monthly reports is that the local real estate market is “steady, with no dips. Through interest rates and insurances woes, we have steadily continued to keep home equity in our properties with year over year increases,” said Mirambell. “We are also seeing lawmakers create legislation to increase competition in insurance prices for South Louisiana, which has been our biggest hurdle for the last year – extremely high and at many times unaffordable property insurance premiums.”
Mirambell added that competitive financing has also helped sustain the success of the local real estate market this year. “Lenders have creative financing for interest rate buy-down, and rates themselves have been coming down,” he said. “There are some grants available for first-time homebuyers. As we have seen with higher priced homes, the luxury price range has less restraints on purchasing, therefore that’s increasing our averages, but we are still having opportunities for first-time homebuyers to purchase lower than our averages.”
April Stats Show Inventory is Starting to Climb
New listings in the New Orleans metro area checked in at 2,175 in April 2024, up 15.4% Y-o-Y, and up 4.2% YTD. The parish-by-parish breakdown shows similar increases in inventory.
There were 667 new listings in Orleans Parish in April, up 13.8% from last year. Jefferson Parish showed its largest increase in the inventory category with new listings coming in at 540 in April 2024, up 16.9% Y-o-Y. In St. Tammany Parish, there were 571 new listings in April 2024, up 17.7% Y-o-Y.
Days on market does remains high across the board, checking in at an average of 63 in April 2024, up 26% Y-o-Y in the New Orleans metro area. Homes in Jefferson Parish are averaging 53 days on the market, while in St. Tammany Parish, days on market is averaging 62.
“For the summer, in keeping with New Orleans temperatures, we expect the market to be hot,” said Mirambell. “With sustained and increasing prices, sellers are expected to capitalize on these high prices, providing buyers with even more options. Buyers may remain a bit cautious with more inventory and increased days on market combined with the looming hurricane months, but ultimately if it’s the house for them, we believe they will proceed with their long-term investment and home.”
Mirambell added: “As we approach the summer, both buyers and sellers, along with their realtors, will need to stay informed and strategic to navigate the metro New Orleans housing market successfully.”
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