New Orleans has gone through some rough times these past few years. Even though the market may not be appealing to many people, it could still offer some opportunities to those willing to invest in a culturally rich city.
If you're looking to buy an affordable home, then New Orleans may be a great option to consider. There are great amenities like Manchu Food Store & Chinese Kitchen and several Whole Foods Market locations. Moreover, there's a wide range of highly-rated schools based on their academic progress, test scores, college readiness, and other factors.
Is New Orleans right for you? Or are nearby cities a better fit? Let's look at this housing market in depth to get a clearer answer.
Recent Trends in the New Orleans Real Estate Market
At first glance, it's easy to see that the New Orleans housing market hasn't been doing good for sellers over the past year compared to other big cities, with single-family homes (the most common housing type in the city) taking the biggest decline.
Let's look at the most recent trends affecting the market in New Orleans:
Median Sale Price
Currently, the median home price in New Orleans is $342K, which supposes a 6.9% decrease from last year. The median listing home price per square foot is $229.
On the other hand, the median sold home price got to $679K.
Number of Homes Sold
There were about 313 homes sold in New Orleans in April 2023; a 34.8% decrease compared to last year. In April 2o22, there were 480 homes sold.
Median Days on the Market
The 'average days on the market' is one of the most important factors to evaluate before selling or investing. Overall, homes in New Orleans, LA, sell after 66 days on the market. This is a 51-day increase compared to last year, so we're talking about almost two months of difference.
In New Orleans, the current sale-to-list price is 96.3%, which implies there's a certain balance between buyers and sellers. Here, though, buyers may have the upper hand when negotiating better prices even in popular neighborhoods.
About 12.1% of homes in New Orleans sold above their listing price in April 2023, whereas 27.5% of homes sold below their listing price. Again, this implies buyers have an advantage when searching for affordable housing.
Factors That Affect the New Orleans Housing Market
The housing market in New Orleans can get affected by the following factors:
Mortgage rates have continued to increase over the past few years, which has made it harder for buyers to purchase cheaper homes in certain cities. Still, home prices in New Orleans are relatively low in comparison to other areas in the U.S., so this may not be a problem for you unless you're waiting for the right opportunity or for these rates to decrease.
Supply and Demand
Due to the fact that there's a larger supply of homes than the current demand, we can say New Orleans is a buyer's market.
There are plenty of opportunities you can take advantage of, so all you have to do is do proper research until you find a suitable property for your needs and budget.
A city's demographics can help you determine which people groups are more likely to purchase certain types of homes there. Demographics are calculated based on age, gender, race, income, and more.
Government Policies and Interventions
Government interventions, such as decisions, taxation, migration patterns, and others, can cause the state's housing market to go through some changes; this can affect the city's market too.
Is the Housing Market in New Orleans Likely to Crash?
While the current statistics may suggest New Orleans will go through a crash in 2023, it's not likely. What we're likely to experience is a slowdown in the market, in other words, prices will keep going down.
Overall, there's a decent inventory of homes for sale, and even though there aren't as many buyers, there are still many people interested in this city. As buyers, you'll have many opportunities to find a great housing option. Sellers, however, will have a harder time getting their prices up, as recent trends indicate that the lower demand will get them to lower their prices even more to find a buyer.
Recent Statistics About the New Orleans Market
Here's a list of other important statistics you should consider about the New Orleans real estate market:
- Audubon is considered one of the most expensive neighborhoods in New Orleans, with a median home price of $1.1M. On the other hand, Little Woods, with a median home price of $195K, is considered the most affordable one.
- Other popular neighborhoods in New Orleans include French Quarter with a median listing of $492.5K and the Central Business District with a median listing of 381K.
- About 79% of buyers in New Orleans have indicated they wanted to stay within the metro area, whereas the other 21% wanted to move out to other cities. This data is from February-April 2023.
- 100% of homes are at risk of flooding in New Orleans, according to Redfin.
Important Predictions for the New Orleans Market
The forecast for New Orleans over the following months doesn't look too good. Prices are expected to keep decreasing over 2023 and into 2024, which isn't good news for those looking to sell.
Buyers, on the other hand, may have even more opportunities to find housing if home values keep going down. However, due to the nature of this market, it's important that you do as much research as possible to ensure you find an appropriate house to buy.
A great thing about New Orleans is its diverse economy and the popularity of the rental market. Even though Hurricane Katrina caused a lot of damage to the market, New Orleans remains a great city to be in, especially for those visiting.
There may be a higher demand for rental properties over the following months. Moreover, considering New Orleans is landlord-friendly, you could greatly benefit from buying a property to rent in the future.
In other words, if you make a wise investment, you could see amazing returns over the following months. Due to the number of homes available and their declining prices, you will likely find something that fits your needs.
Keep in mind the real estate market can become unpredictable sometimes, so if you're interested in this particular one, don't wait until it's too late to invest in the affordable housing it offers.
Generally speaking, the New Orleans real estate market currently offers many opportunities to those looking for affordable housing. The market forecast suggests prices will keep going down, and since demand stays relatively stable, you are likely to find a good deal for your next home.
Remember that the most important part of any investment is the research. Even though New Orleans seems to be perfect for buyers today, make sure you don't go for the first property you see; instead, compare different options until you find the best one for your needs.
Is New Orleans a Buyer's Market?
Currently, New Orleans is considered a buyer's market, as there's a larger supply of homes than the current demand for them.
Is It a Good Time to Buy in New Orleans?
It depends on how you look at it. If you're a buyer, then it may be an excellent time to buy a property, as home values are still declining, and there's still a decent supply of properties for those interested.
However, remember there are different factors, such as mortgage rates, that may still affect affordability even in the best neighborhoods in the metro area.
How Does the Housing Market in Louisiana Look Right Now?
The market in Louisiana doesn't look very competitive as of 2023. There's not such a big demand for homes, making the prices go lower and lower every month.
Still, New Orleans is considered more competitive than other nearby cities, which may be a good sign for those who want to invest in this city.