New Orleans, Louisiana, presents some great opportunity for potential homebuyers who save up for a home, but like much of the country, high prices and mortgage rates will temper the market.
The good news is that the local real estate market is expected to get better in the Greater New Orleans area, as long as you are priced right and have curb appeal.
Although there are still some cheap homes out there, Greater New Orleans home prices rose throughout the previous year and are poised to continue to do so into 2023 although not as greatly.
While the scorching mortgage rates that recently topped 7.79% appear to be cooling, don’t expect a plunge back to the paradise of low rates. Forecasts mostly agree: a slight downward creep is likely, but expect most loans to remain above 6%, significantly higher than both historical lows and current rates enjoyed by the vast majority of homeowners.
This means a major shakeup for the 90% of mortgage holders with enviable sub-4% rates is improbable. In fact, two-thirds of home loan owners sit comfortably below the 4% mark, leaving them largely unaffected by the potential decrease.
Prices in New Orleans, Louisiana, are expected to fall on average of 1% based on Zillow data. The rate of appreciation has been above the national average for most of the past 10 years and that is expected to continue over the next 12 months.
According to the latest figures on Zillow, the average home price for a home in New Orleans is just under $250,000. In Metairie, the average price is around $256,000, which is up about 10% over the last year.
There will be a glut of inventory of homes for sale in the metro area, and they will likely take longer to get offers and sales. How to afford a home will also be more of a challenge this year as economic factors loom, expert data says.
There will be more homes for sale, homes will likely take longer to sell, and buyers will not face the extreme competition that was commonplace over the past few year.
Home prices in New Orleans are forecast to decline a bit, which will only serve to strengthen an already steady market. Homeowners are looking for affordable properties in the metro area, and New Orleans will continue to modestly shed inventory.
New Orleans, one of the solidly traditional cities when it comes to home sales, is not unlike other large Southern cities in that it is expected to continue to be an in-demand market. That means the forecasted dip in local housing prices is only temporary.
One of the main factors that will influence home prices is the economic landscape of the United States. Namely, the incremental movements by the Federal Reserve to get inflation in check.
While interest rates are ticking upward, the chance that a full-blown recession takes hold in 2023 can’t be entirely discounted. But what such a move will no doubt do is slow down the mortgage industry.
Rising mortgage rates are expected to continue to shed competition among people looking to buy a home. While a buyers market is a possibility in some areas, for Greater New Orleans, it is anticipated that real estate prices will hold up just enough that such a market won’t firmly take hold.
Home shoppers priced out of the market will likely create pressures on the rent market, boosting prices once again.
To find out how much mortgage you qualify for, use this mortgage calculator.
Contrary to popular belief, the coronavirus pandemic won’t stop housing prices from climbing in New Orleans or anywhere else. In fact, it may be quite the opposite.
The pandemic set off a buying frenzy that will be hard to sustain. As prices continue to level off, make sure you’re pre-approved for a mortgage so that you can take advantage of low rates.
If your finances need work, make sure you try to raise your credit score so you are an attractive homebuyer.
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