For the most updated information on real estate in New Orleans, please visit our latest New Orleans real estate market page.
The New Orleans real estate market continued to grow stronger in 2016. Home prices are up from a year ago, one-year appreciation rates have surpassed the national average, and home affordability remains among the lowest in the country. In comparison to previous years, the second quarter delivered a renewed confidence in the Big Easy. All in all, the New Orleans real estate market is making substantial improvements in 2016; a trend that should continue into the new year.
New Orleans, LA Real Estate Market Statistics:
The second quarter saw decent gains in both total equity and appreciation rates for New Orleans real estate. Homes appreciated at a one-year rate of 10.9 percent, more than double the national average of 4.9 percent, while three-year rates stayed put at 10.6 percent. Gains in the last three years have extended the trend of positive price growth since the recession, benefitting New Orleans real estate investors and homeowners alike. For those considering New Orleans real estate investments, the following spotlights appreciation gains in previous years:
- Homes purchased in the New Orleans, LA housing market one year ago have appreciated, on average, by $22,117. The national average was $14,963 over the same period.
- Homes purchased in the New Orleans, LA housing market three years ago have appreciated, on average, by $28,022. The national average was $46,878 over the same period.
- Homes purchased in the New Orleans, LA housing market five years ago have appreciated, on average, by $50,067. The national average was $82,353 over the same period.
- Homes purchased in the New Orleans, LA housing market seven years ago have appreciated, on average, by $48,309. The national average was $77,054 over the same period.
- Homes purchased in the New Orleans, LA housing market nine years ago have appreciated, on average, by $50,564. The national average was $31,126 over the same period.
The second quarter proved to be a strong outing for New Orleans real estate in terms of total equity gains. Homes purchased a year ago appreciated by $22,177; compared to the national average of $14,963. The largest margin of total equity occurs in homes purchased in 2005, earning more than $70,000; whereas the rest of the country saw gains of $34,380. For those seeking investment opportunities, New Orleans real estate remains a hot commodity.
Another component to investing are foreclosures. The New Orleans real estate market saw 807 properties in some stage of foreclosures during the month of September, according to RealtyTrac. Surprisingly, this is 35 percent higher than the previous month and 21 percent lower than the same time last year. REO properties are another investment opportunity. The percentage of bank owned properties rose 25.7 percent higher than the previous month and a whopping 266.7 percent higher than the previous year. This could spur significant investor activity in coming months.
New Orleans, LA Real Estate Market Summary:
- Current Median Home Price: $195,900
- 1-Year Appreciation Rate: 10.9%
- 3-Year Appreciation Rate: 10.6%
- Unemployment Rate: 6.4%
- 1-Year Job Growth Rate: 0.6%
- Population: 378,715
- Median Household Income: $56,361
New Orleans, LA Real Estate Market (2016) — Q2 Updates:
The New Orleans real estate market is off to a great start so far in 2016, and the trend is expected to continue in the second half. The median home price for New Orleans real estate was $195,900 during the second quarter, slightly below the national average of $239,167. However, home prices continue to grow relative to last year with gains in the last year extended the trend of positive growth.
Home affordability remains the focal point to the New Orleans housing market in 2016. Homeowners paid 8.6 percent of their income to mortgage payments, versus the national average which paid nearly double at 15.8 percent. Although the New Orleans housing market remains one of the more affordable in the country, the rate of new housing construction in 2016 is lagging. The second quarter saw construction levels in New Orleans reach 3.5 percent above the long-term average, while single-family housing permits staggered at -3.9 percent. As construction continues to decline from last year, home affordability could take a hit in coming years.
Another factor impacting the New Orleans real estate market is its local economy. Unemployment continues to fall behind the national average, as unemployment reached 6.4 percent during the second quarter, compared to the national average of 4.9 percent. Job growth wasn’t much better; one-year job growth was 0.6 percent during Q1, as opposed to the rest of the country at 1.9 percent.
Foreclosures are an additional element investors should be aware of in 2016. Foreclosures can present a wealth of investment opportunities. However, too many foreclosures in a market can potentially hinder home prices. The second quarter also saw an astronomical rise in REO properties, as bank owned properties rose 266.7 percent in Q2. That said, the New Orleans real estate market is ripe with investment opportunities.
According to the National Association of Realtors (NAR), the New Orleans real estate market is forecasted to experience weaker price growth in the next 12 months. The NAR is projecting price growth in Louisiana to remain modest, rising 2.7 percent in the second half of 2016, compared to 3.6 percent by the national average. Moving forward, the New Orleans real estate market is shaping up to become one of the better housing markets in the country.
