Home sellers may finally be getting the hint -- high interest rates mean home buyers do not want to pay as much. But another factor is slowing down home sales in New Orleans.
A survey by the real estate web site Redfin found home sellers dropping their asking price in the month of October. Local real estate analyst Arthur Sterbcow says we have that here, too, but we also have another issue: the high cost of insurance.
"Insurance has been as problematic as the interest rates," said Sterbcow.
He says potential buyers are seeing how much the insurance escrow is going to add to their monthly payments, and it is a factor in their offers.
"Certainly, its a function of how much money do they have in their checking account after they pay for food," Sterbcow explained.
He says other Gulf coast states, from Texas to Florida, are also dealing with it.
"It's absolutely had an impact on sale price and I expect it's going to continue until these interest rates start to settle back down," he said.
Sterbcow says it may be a year and a half to two years before borrowers see interest rates coming down.