Common Reasons To Sell Your Home

 “No matter what interest rates and home prices do next, sometimes homeowners just have to move—due to a new job, new baby, divorce, death, or some other major life change,” from Realtor.com. A life change is a big reason for you to sell your home. It is not the ideal time or market but sometimes that just doesn’t matter. Here are several reasons why now would be a good time to sell your home.

Relocation

There are many different things to cause you to have to relocate. They include a job change, needing to be closer to loved ones, or just needing a change of scenery.

Upgrading

You have an addition to your family, or you might just want a larger home. During the pandemic, stay-at-home orders made outdoor living spaces, home offices and home gyms more important spaces. An upgrade could be a move to another home so you have one or all of these features.

Downsizing

If you are soon to become an empty nester, then you might need to downsize. If you have too much space and not all of it is being used, then it probably would be a good move.

Change in Relationship Status

This is not a fun event but it does happen. Divorce, separation or on the brighter side marriage can push someone to sell their home.

Health Concerns

If something changes such as a homeowner that is now immobile, might need to change their living space to accommodate.

Remember selling your home and figuring out the right time to sell your home is a personal choice. “Deciding whether it’s the right time to sell your home is a very personal choice. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market,” says Bankrate.

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U.S. Home Builders Beat Expectations for July

 According to data from the Census Bureau home building increased 3.9% in July from June. This stems from the buyers’ interest in new homes since the market is so low on existing home inventory. New home starts bumped up to a seasonally adjusted annual rate of 1.452 million which beat out the expectation from the Census Bureau of 1.448 million.

Single-family homes rose 6.7% in July with a seasonally adjusted annual rate of 983,000. This makes the number of units started up to 5.9% from July of last year.

“Buyers embraced new homes in the first half of this year as a welcome alternative to the massive shortage of existing homes. Homebuilders responded to the rebound in demand by ramping up production in the first five months of 2023 and rolling out incentives. The latest readings show activity skewing noticeably toward the single-family space,” said George Ratiu.

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Is the Housing Market Both a Seller’s and a Buyer’s Market?

 The pandemic hit and the housing market went crazy with buyers. In fact, many potential home buyers felt desperate and defeated due to all cash offers and multi-bidding wars. Those in the industry say that this is not the case anymore as the market is starting to become an even playing field.

“Those moments of…..there are 20 offers coming in are gone now. Buyers can take a bit more time . The buyer has a little bit more power or control on their side, ” says Jay Farner with Rocket Mortgage.

This is the 10th month in a row that home sales have dropped due to the rise in the mortgage rates. This has been the longest decline in home sales since around 1999. The market is not as hot as it was during the pandemic for sellers, but still is not a buyer’s market either due to the still historically low housing inventory.

“I’d say it’s an even market. A few years ago, it was clearly a seller’s market. We were doing verified approvals, people were getting a full underwrite within 24 hours to ensure they could present almost like a cash buyer to make an offer on that home. Now, they have a bit more time. They have more homes they can look at…..We’re not seeing 15 offers on one home,” replies Farner.

Even though the home prices are slowing down, they are not dropping. Since the demand is decreasing a bit, so is the supply. Higher mortgage interest rates have caused a slump in the market due to high inflation. The 30-year fixed at the week ending January 12 was around 6.33% which was down from last fall but up from this time a year ago.

“A recession here is on the horizon. People are changing their spending habits, credit card debt is rising, savings and bank accounts are dropping. All of those things tell me that we’ve set the table for a recession here in 2023,” says Farner.

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Changes to the New Orleans Housing Market

 A Bucktown resident put their house on the market in January hoping the nice three bedroom home would sell fast after witnessing the explosion of buyers in the housing market since the Pandemic. After sitting on the market for two weeks with no offers Roxanna Campos was surprisingly disappointed.

“I would have thought we’ have multiple offers by now. If we haven’t had any movement in the next week, we might have to rethink things,” said Campos.

Sellers across the country are facing this same situation. They are having to lower their asking prices and agree on concessions to buyers. In 2022 the volume of home sales was down, and homes were sitting on the market longer according to the Gulf South Real Estate Information Network.

Although home prices did keep rising even with the slow down in the market. In fact, the median sale price in the New Orleans metro area was up 7.8% year over year to $277,000. This was up 24% from the pre-pandemic that was reported at $219,400. The biggest drop in pending sales was in outlying Plaquemines, northern St. Tammany, Tangipahoa and the River parishes.

Why is New Orleans seeing a slowdown? This can be blamed on the rising interest rates, high inflation and the big jump in property and flood insurance rates.

“The insurance rates are literally killing deals. I had a quote for a $10,000 premium for property insurance on a 2,800-square-foot house in Metairie. We couldn’t do the deal. The buyer had to walk away from their dream house,” said broker Jiarra Rayford of Rayford Realty.

Even with the total inventory of homes for sale is up due to the cooler market, the home prices in the area are still reflecting the rise. In some areas, like St. Charles Parish, the home prices doubled. Tangipahoa had the biggest increase up 15%, St. Tammany up 11%, Orleans up 5.8%, and Jefferson was up 5.5%.

In the New Orleans metro area, homes that were priced between $224,000- $350,000 sold the quickest. The average days on the market for these homes was around 32 days. Many agents throughout the area are seeing a shift in sellers. They are being a bit more realistic about their pricing.

“It’s not like the market is dead,” Mirambell said. “I had nine offers last week on a house in Old Metairie. Another one in New Orleans had an escalation clause for $40,000 above list price. So, houses that are updated and have a lot of appeal are still flying off the shelf.”

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Why House Hunters Will Be Ready To Buy In The Next Six Months

 According to a survey done by Realtor.com, 46% of potential house buyers said they were planning on purchasing a home within the next six months. This study looked at those who accessed listings and search results of homes on the site. The survey justifies that although we look like we are in a recession and the 30-year fixed mortgage rate is close to 6%, this is not detouring buyers in the market. This share of buyers reported is actually higher than reported in 2019 even with mortgage rates reaching the highest level since 2008 and home prices increasing.

Many potential home buyers are looking at the market as an advantage. Rising inventory levels are bringing more options for buyers to find a home within their budget. It is reported that two in five buyers feel that the U.S. economy is already in a recession but it will have no effect on their decision to purchase a home in the near future. Close to 27% of home buyers are more likely to purchase while the economy is in a recession. This figure is up 24% from what was reported in 2021 although there are many potential home buyers that are scared of the current market. In fact, the share of buyers who say they are more than likely not going to purchase a home during a recession rose from 5% to 6.5% this year.

The housing market is definitely tipping the scale from a sellers’ market over to a buyers’ market. Those in the industry said there are fewer buyers who are being outbid going from 12.6% to 9.4% from this spring to summer. The share of buyers who report being overbid on a home has decreased as the market has begun to correct itself

Even though there are home buyers who are willing to purchase in an uncertain economic time, it is still a sellers’ market. Twelve percent of first-time homebuyers are still being outbid in today’s market. Two in five first-time home buyers are also having a hard time finding a home within their budget. Currently, the median price of homes in the U.S. was $435,0000 according to Reatlor.com. This summer was at an all-time high of $450,000! Twenty percent of first-time homebuyers also said they are having a hard time buying because of their credit score.

If you are a first-time homebuyer or in the market to purchase a home, you will want to work with a local real estate agent who can help you navigate these uncertain waters. A local agent can help you find a home in your price range in your desired area.

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Riverfront Hotel Planned for New Orleans Convention Center Will Still Happen

The Ernest N. Morial Convention Center has chosen AECOM-Broadmoor to oversee their $557 million project to upgrade the complex. This is the first upgrade project since the convention center was constructed in 1984. The center has already tapped into the budget and spent $115 million on updates through the linear park which runs along the 11 blocks in front of the complex.

"We’re looking forward to digging into this project, collaborating with the entire community of trades and professionals involved to create a highly functional, beautiful, 21st century Morial Convention Center for everyone who visits it," said AECOM-Broadmoor's spokesperson Amy Ferguson.

Now the once cancelled hotel that was part of the project has been restored. Texas-based Matthews Southwest will take on the 500-room hotel. The hotel is just part of the new additions at the upriver end of the Convention Center. The multi-acre area will include retail, residential and an entertainment district.

The new hotel will include 13-stories along with a 28,000 square-foot festival deck that looks out onto the river. The hotel will sit on the South Front Street side and be connected to the Convention Center. The elevated pedestrian walkway that connects the hotel to the center will include restaurants and retailers.

This is great news for the city of New Orleans as its convention center is the only one in the country that does not have an attached hotel. The new project will definitely help New Orleans compete for event business with other convention centers throughout the country.

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