The Washington Post reports home sales surged last month as prices dropped for the first time in eleven years. That sales surge, however, isn't happening here.
"The number of sales is down significantly," says local real estate analyst Arthur Sterbcow. "Orleans Parish is down 36 percent, Jefferson's down 29 percent, St. Tammany's down about 32 percent."
It's not just rising mortgage rates. There is also the problem with finding companies to write homeowners insurance in south Louisiana.
"A lot of issues going on right now," Sterbcow says. "The insurance issue is going to be highly significant on real estate sales, as people's insurance comes up for renewal or the pending sales find out what the new insurance rates are on homes."
Sterbcow says flood insurance is also causing problems. He says homes above the flood zone aren't as affected, but properties where lenders require flood insurance are seeing increasing rates, and scaring off buyers.
He says it has gone from a sellers' market, where homes were getting better than full-price offers after being on the market for only a few hours, to a buyers' market, where homeowners may have to take what is offered.
