A record 1.61 trillion dollars in new mortgages were issued in 2021 nationwide according to the Mortgage Bankers Association. Will we see a second record-breaking year in a row? One local real estate analyst told WWL that it’s unlikely.
“I think it is going to stabilize out, and probably slow down a bit, primarily a function of interest rates,” said Arthur Sterbcow, discussing the expected rate of home value inflation. “They are certainly not going to stay where they were in 2020 and 2021.”
The fed has promised gradual interest rate increases starting this year, a reversal of a years-long policy. With interest rates set to rise this year Sterbcow recommends that if you are on the fence about buying a home right now, you make a decision sooner rather than later.
“Historically even in times of high inflation, the one asset that has kept pace with inflation has been housing prices,” said Sterbcow.
Locally Sterbcow expects areas like St. Bernard to see continued surges in home value, while the market cools faster in New Orleans.
“We have seen some movement from Orleans Parish, which had the more restrictive requirements regarding COVID, to the less restrictive areas, and those jobs have seemed to move,” said Sterbcow.
