While COVID-19 devastated most businesses, real estate remained a bright spot amid the pandemic. Home sales surged in 2020, the highest since 2006, with millennials making up the largest share of home buyers at 38%.
Experts predict that the strong showing of the housing market will continue in 2021 as businesses reopen and the economy recovers. If you’re planning to buy a home or sell commercial real estate in New Orleans, these latest updates will let you know how the market performs and what to expect.
Expect an influx of buyers
Although corporate offices were forced by the pandemic to allow their employees to work from home, many are now thinking of turning the temporary arrangement semi-permanent. Corporate bosses have seen the benefits of reducing their office footprint, and realized that unshackling themselves from a physical workplace broadened their talent pool, as employees don’t have to be in the same city – or state – to work for them.
This, in turn, has freed employees to relocate to the suburbs or to homes with dedicated “Zoom rooms” or flex rooms to accommodate remote working and learning needs. And, even better, buy a home with large yards or outdoor spaces in which to de-stress.
The market also shows some buyers wanting to move to suburban areas in New Orleans for bigger homes and more affordable options. Among families, there is an increasing demand for multi-generational homes to accommodate aging parents, adult children, or extended family. In addition to keeping the family physically together, family members are also pooling resources to buy larger homes.
A strong sellers’ market
The pandemic caused some sellers to postpone listing their properties. It is reported that there are 50% fewer homes for sale this year. Amid the shortage of inventory and high buyer demand, sellers find themselves in an enviable position of entertaining multiple offers at record prices.
However, sellers will have to work with an experienced Realtor to make sure that even as they sell their current property, they are able to secure the next suitable home to move to.
Buyers face fierce competition
The buying surge is fueled by a combination of market conditions such as millennials and renters entering the home buying sphere, the ability to work remotely, and low interest rates.
However, buyers face fewer homes and higher prices. Working with an experienced local agent who can help devise a buying strategy is crucial to achieve your real estate goals.
While construction of new homes could add to the supply, this will take time. Expect, too, for development to be concentrated outside metropolitan areas or places with enough acreage to build new neighborhoods.
Home prices are rising
The median home value in New Orleans is $250,000. In a seller’s market, expect housing prices to rise. According to the National Association of Realtors, home price increases started in the fourth quarter of 2020. In fact, in New Orleans, home values have gone up 3.7% over the past year.
For more updates in real estate in Covington LA, and to help you navigate your plan to sell or buy a home, work with a Realtor in New Orleans, LA.
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