UPDATED AS OF 7/31/2020
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, but with the way the virus is continuing to spread, there’s no telling how long that it will take for us to move beyond Phase 2.
There’s been a slight decrease in the number of available listings as of 7/31/2020, down from 2,933 in June to 2,888 as of today. This is just over 13% lower than July of last year.
As the number of available listings slowly increases, we expected sales to follow suit. June had a total of 784 single-family homes and condos sold; this is definitely not the normal experience at this time of year given that there were 847 units sold in June 2019. July sales were up from July 2019, moving from 746 last year to 784 this year.
With a combination of job losses, showing challenges, and people continuing to follow 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. 64 condos sold in July 2020, compared to 74 in July 2019 – this is a good sign because the numbers are on the rise.
After an increase in March median sold prices for single-family homes, we saw it drop by $7,500 in April and remain flat in May. June strengthened to a median sold price of $258,250 for single-family homes and as of July 31, the median single-family sold price stands at $274,000 – the highest we’ve seen for the last 13 months.
Condo prices are still in flux, with median prices dropping to $195,000 in June 2020, down 21% from June of 2019 and then rebounding to $262,500 as of 7/31/2020.
We are changing our stance on whether or not it’s time to list your home – if you’re ready to move, the market is favoring sellers in most areas.
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.
As the state stays in Phase 2, we are seeing a shortage of properties in the under $225,000 price range. If your home falls into the affordable range and it doesn’t need a lot of work, you are likely to be able to sell quickly. Feel free to call us at 504-327-5303 to schedule a free seller consultation.
At the beginning of the stay at home order, property showings were down by over 50%, but that number now stands at 25% HIGHER than 2019. It’s an indicator that people are feeling comfortable with showings, and we’ve certainly been seeing an increase in showing requests and offers.
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.