UPDATED AS OF 5/26/2020
Because everyone wants to know “how’s the market?”, we’ve put together our New Orleans COVID-19 real estate market update. What’s the impact of COVID-19 on real estate prices? Are people still showing, buying, and selling houses?
We could go with our guts, but let’s get down to the numbers because that’s the information that everyone wants to have. We’ll update these every week to track the trends and changes (you might want to bookmark this page to come back to later!).
Orleans and Jefferson Parishes make up the bulk of our business, so that’s where we’re going to concentrate. The chart below shows the month to month trends in the number of single-family homes and condos for sale in New Orleans and Jefferson Parish. Inventory has been basically stagnant since January, at a time when we normally see an increase in listings every day. As reopening phases for the state are implemented, we *should* see this number go up again. There’s been a slight increase in the number of available listings as of 5/26/2020, up from 2,857 in April to 2,972 in May.
As the number of available listings slowly increases, we expected sales to follow suit. April had a total of 528 single-family homes and condos sold; this is definitely not the normal experience at this time of year. We’re almost entirely through the month of May now and only 274 units have been sold. We’re hoping there are a lot of closing scheduled for this week since it’s the end of the month, but it’s going to take a LOT to catch up.
With a combination of job losses, showing challenges, and people following the stay at home order, we are not experiencing a normal spring market. Condos, in particular, are taking a hit. Since many of our condo buyers are looking for second homes, most of those folks are sitting out of the market right now. 23 condos have sold so far in May, compared to 65 in January.
After an increase in March median sold prices for single-family homes, we saw it drop by $9,000 in April. As of May 15th, the median sold price has dropped yet again, to $233,250. It’s a small drop though, and may not be indicative of where we end the month. Again, this is totally dependent on the number of sales that happen this week.
We remain convinced that until the curve flattens, it’s not the time to put an occupied house on the market unless you have to. We’re taking appropriate measures with our current listings to keep everyone safe, including virtual showings, and limiting the number of people visiting a property, but it’s not a fool-proof method.
At the beginning of the stay at home order, property showings were down by over 50%, but that number now stands around 0.4% higher than the same time last year (that’s a nice increase from last week). It’s an indicator that people are feeling comfortable with showings, and we expect that our June numbers may be more indicative of a “normal” market.
What it’s not an indicator of is how safe those showings might be. Only you and your agent can decide on the best course of action to reach your real estate goals while maintaining some semblance of social distancing and personal safety as move through the phases of reopening the city.