Take a Peek at the Metro New Orleans Real Estate Market
The thriving city of New Orleans has seen high prices and low inventory in the end of 2020 and going into 2021—great news for sellers, but not so much for buyers. However, there is a silver lining for anyone looking to buy a home soon. This year, prices are expected to increase at a slower rate, and most properties are still selling slightly below asking price.
Thinking about making a move soon? We can help! Take a look at the statistics below, and let us know if you have any questions. We'd love to help you achieve real estate success in the Big Easy!
The average NOLA home stays on the market for around 35 days, and bidding wars are fairly uncommon at most price points. However, it's safe to say we're still experiencing a firm seller's market.
Though NOLA prices are pretty affordable compared to many other metro areas, it's one of the most expensive markets in the state. We're also seeing a 7% increase in buying and selling activity compared to last year.
Home values throughout New Orleans skyrocketed more than ever before last year, but we won't see such drastic increases for 2021. Most experts believe that prices will increase by a modest 3%.
Homes for Sale in Metro New Orleans
Metro New Orleans by the Numbers
Median Home Value: $205,000
Travel & Commute
Baton Rouge: 1.5 hours
Mobile, AL: 2.25 hours
Major Roads: I-10, I-310, US-90
The early 2000s
The New Orleans real estate market experienced a steady increase in home prices prior to Hurricane Katrina, which struck in 2005. From 1994 through 2004, single-family homes listed in move-in condition increased in price from an average of $56 per square foot to $100 per square foot. This computes to an average of 5.9% per year. In early- and mid-2005, prices increased by about 7%, a high rate for the region, but still substantially lower than soaring national levels.
The 2000s and 2010s
In August 2005, Hurricane Katrina damaged much of the housing stock, resulting in a sharp rise in undamaged home prices. Area prices peaked during the second quarter of 2007 to $126 per square foot. Brought down by the national housing crash and ensuing recession, prices fell to $112 by the first quarter of 2009. This was a significant drop, but far less than in many other regions of the country. Through March 2012, prices followed a narrow sideways trend bounded by $115.53 on the upside and $111.30 on the downside. Prices started turning up nicely in mid-2012 as sales activity strengthened, and now the overall metro price level has reached an all time high.
Even during COVID-19, home prices in the New Orleans area continued to skyrocket. However, we saw the biggest increases in more suburban locations, including Jefferson Parish (+11.7%), Tangipahoa Parish (+9.1%), and St. John Parish (+7.1%). This shift was likely caused by a pandemic-induced desire for more space. Tight inventory and high buyer demand have helped foster a seller-focused market, but these trends could fluctuate as 2021 goes on.
A few notes about the pricing data:
- All the sales information comes from the database of homes listed as sold by the Gulf South Real Estate Information Network.
- The information is entered by many hundreds of listing agents and brokers, so we consider the data to be generally accurate but do not and cannot guarantee that it is exactly accurate.
- These charts and tables should be regarded as general guides to trends in Metro New Orleans real estate and not as specific recommendations on the worth of individual homes. Each situation has its own variables, and it pays to have an experienced professional to determine the market value of any property prior to undertaking a transaction.
- Multi-family homes used in this study contain four or fewer units.
Buying or Selling in NOLA?
Are you thinking of buying or selling a home in the New Orleans area? Then it's time to contact the Nugent-Freeland Team! We have plenty of resources to help you turn your real estate dreams into a reality—just drop us a line to get started!