Weekly Real Estate Recap 4.19.2020
I hope you and your loved ones are well. In New Orleans, our Stay at Home Order has been extended until May 16, 2020. Louisiana’s Stay at Home Order is expected to end on April 30, 2020. Alas, New Orleans always has its own path.
This week, I would like to compare our local real estate market between March 15, 2019- April 15, 2019 to the same time frame in 2020. I looked at single and multi-family homes that were pending for sale
between $250,000-$500,000 from Algiers Point to Uptown, from Mid-City to Bywater, and Gentilly. There were 196 homes under contract this time last year and as of this Wednesday, there are 35 homes pending during the same time frame in 2020. That equates to 5.6 times more pending homes last year in comparison to this year due to the COVID-19 pandemic. I also did some primary research in Gentilly and Gentilly Terrace. Homes in Gentilly are listed at $6 per sq. ft. less than what homes sold for over the last 6 months. Homes in Gentilly Terrace are listed at $20 per sq. ft. less than what homes sold for over the last 6 months.
We know that during this time, we will have a stalled or delayed market, and sales will pick up once the economy reopens. Home prices nationally remain stable, but we are already starting to see a shift to a buyer’s market in New Orleans. The last 10 years have favored sellers and now sellers will need to be really smart about their listing prices. On average nationally, pre-pandemic buyers were looking at 9 homes before making an offer. During the pandemic, buyers are looking at 3 homes before making an offer. Locally, first-time buyers were looking at 21 homes on average before writing an offer. We are still tracking the data for current buyers. However, in general, buyers who are looking for a home right now are serious. They have high employment confidence and are most likely employed in these industries: healthcare, education, tech, delivery services, groceries, and pharmacies. 1/3 of Realtors report closings are happening and they are not experiencing any delays. Interest rates have stabilized since mid-to-late March and they are still at historic lows. Stimulus checks have arrived and, hopefully, will help keep families afloat.
Witry Collective is meeting virtually on Mondays and Thursdays and have adapted to new showing techniques and using technology to our clients’ advantage.