What’s the impact of COVID-19 on the New Orleans West Bank real estate market?
The West Bank real estate market doesn’t always follow the trends in New Orleans, so we’ve put together an update that specifically addresses what’s happening on the WB.
We’ll be updating this post weekly, so bookmark and check back next week for the newest information. All of these reports include the following zip codes: 70114, 70131, 70032, 70053, 70056, 70072, 70058, 70094
Active New Orleans West Bank Listings
The number of homes for sale dropped from 602 in March to 560 in April and inched to 569 as of June 1, 2020 – a 21% reduction in available properties from the same time last year. This remains among the lowest number of active listings in over 5 years.
Normally, at this time of year, we would expect to see a much higher number of homes for sale. But the stay at home order has kept sellers from putting their houses on the market until they feel comfortable with the safety precautions being taken during showings of an occupied property. Vacant home sellers generally don’t have the same concerns. As the state moves into Phase 2, we are hopeful that inventory will increase.
Median sold prices
As of June 1, 2020, the average median sold price stands at $186,350, which is now higher than the average median sold price of $178,928 for May-December 2019. Because the West Bank is typically a LOT more affordable than the East Bank, we don’t anticipate any drops in pricing. As things begin to open up more, we expect that the price increases will continue at a slow and steady rate.
New listings on the West Bank
After the typical beginning of the year jump in active listings, April was a disappointment for anyone waiting patiently for the right West Bank home to come on the market. With only 140 new listings hitting the market, pickings were slim if you’ve already seen everything out there in your price range. May looked like the beginning of a rebound in listing activity, with 231 new listings as of 5/31/2020, a 65% increase in properties entering the market.
Months of inventory available
The rule of thumb for inventory is anything less than 5 months = a seller market. That remains the norm on the West Bank, with inventory bouncing back and forth between 3 and 4 months. We started out May with a whopping 17 months of inventory, mostly because new listings were slow to hit the market. That number dropped to 5 months as of 5/31/2020.
Buyers would be advised that a low ball offer will not be so attractive to a seller that knows they have the upper hand right now. While inventory remains low and prices are among the most affordable in the metro area, sellers will continue to field multiple offers on homes that are priced correctly. Buyers are out there, waiting for the right house, so if you’re on the fence about listing right now, it’s time to make a decision.
Have a question about your particular West Bank neighborhood? Leave a comment below or on our West Bank real estate Facebook page. We’ll be happy to get you the information you need.