New Orleans Residential Real Estate COVID-19 Market Update
We’ve already addressed the drop in showings as a result of COVID-19 and the Louisiana stay at home order. But what about the New Orleans residential real estate market as a whole? Let’s take a look at the major indicators.
The number of active listings on the market changes from day to day as properties are listed, go under contract or sell. Generally, it’s a pretty steady number, but as of this week, active listings are down by 11.8%. That’s unheard of in April of any year.
Days on market and new listings
You’d think that the median days on market would be up during the pandemic, but they are actually down by 29.7%. This is likely related to the reduced number of new listings hitting the market, which are down by over 83%.
We’ve seen a 10.5% drop in sold prices from April of 2019 to April 2020. We expect this trend to continue as higher-end homes are taking longer to sell and cheap, vacant properties are garnering more interest from people that aren’t interested in being face to face with agents right now.
This is the real number to keep an eye on. A seller market is usually 0-5 months of inventory. A balanced market is 5-7 months of inventory. A buyer market is anything more than 7 months. With so few buyers out there looking, we have a whopping 40 months of inventory.
This is a good time to remind you that if you don’t NEED to sell, then sit back and wait for the return of the market (we promise, it *will* return). Take care of those little deferred maintenance items. Finish that “I’m gonna get to it one day” list. Spruce up your landscaping. Paint your front door. Clean out your closets. Do all of the things we always say to do to get your home ready to sell.
We’ll be back. We always come back.