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 single-family homes and condos for sale dropped from 575 in May to 546 in June and ended July at 521 – a 26% reduction in available properties from the same time last year. This remains among the lowest number of active listings in over 5 years, with 511 homes for sale as of 8/8/2020.
Normally, at this time of year, we would expect to see a much higher number of active listings. But the stay at home order has continued to keep 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 remains in Phase 2, we are hopeful that inventory will increase, because the demand for homes is definitely there.
Median sold prices
As of August 8, 2020, the average median sold price stands at $190,500, which is the down slightly from May, June, and July, but still in the top 10 of the highest pricing we’ve seen in the last 10 years. 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 huge disappointment for anyone waiting patiently for the right West Bank home to come on the market. With only 143 new listings hitting the market, pickings were slim if you had already seen everything out there in your price range. May was the beginning of a rebound in listing activity, with 244 new listings. 233 homes came on the market in June and 264 in July. August, however, is showing a slow down in the number of new listings and it’s not good news for buyers. Inventory continues to be low, with plenty of ready, willing, and able buyers hanging out, waiting for the right house to become available.
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. July had a record low inventory of just 2 months of available properties.
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.