NEW ORLEANS (WVUE) – The New Orleans Metropolitan Area Association of Realtors (NOMAR) held its annual Forecast Symposium, bringing together real estate professionals to discuss the key factors impacting the housing market.
This year’s main theme was the ongoing insurance crisis in Louisiana, which is severely impacting home sales and home affordability.
NOMAR President Craig Millambell says rising insurance premiums are a central issue.
“Insurance prices are really exorbitant, interest rates are high, the economy is in a downturn, and we have an election coming up. There were a lot of downsides, but the good thing was that homeowners were able to keep equity in their homes. That’s what happened,” Mirambel said.
Mirambell said Louisiana’s insurance crisis has been a drag on the state’s housing industry for the past two years. He believes recent hurricanes along the Gulf Coast will only complicate matters.
“We didn’t have any direct damage here in Louisiana, but seeing it happen to our friends in the South, our premiums probably wouldn’t go down at all in the end. So we didn’t need it, but… The costs involved will ultimately keep prices high,” Mirambel said.
These prices make selling homes extremely difficult for some real estate agents. That means less money coming in.
“To be honest, I used to work in real estate full-time. I don’t do it full-time anymore because it’s too hard. I have a family too. So I don’t want these deals to happen. I can’t assume everything, because I need them to happen, and if they don’t happen, my clients won’t be happy, and my family won’t be happy.” said Misty Fry of Melancon Realty.
insurance crisis
Misty Frye, who has been an agent for 17 years, says the costs associated with purchasing a home in Louisiana often put prospective buyers on an emotional roller coaster.
“People can get tearful or upset. They think they’ve reached the finish line and then something happens and they’re like, oh, I can’t do it, my insurance is blown. ” Frye said.
Dr. Jessica Lautz was the featured speaker at this year’s symposium. She is an economist with the National Association of Realtors. He brought a broader perspective to the forecast session, saying Louisiana’s real estate industry faces several headwinds, including population decline.
“Most areas in the Sunbelt see mass migration into those areas, but unfortunately we don’t see that in Louisiana. So we don’t have anything like that in the New Orleans area. . Job growth hasn’t recovered since before the coronavirus pandemic started, and that may be limiting people from moving. But I have to say, affordability. is definitely improving in a better scenario compared to other parts of the country,” Dr. Lautz said.
Despite the New Orleans real estate market facing multiple challenges in recent years, NOMAR’s board president predicted the market will improve in 2025.
“I’m always an optimistic type of person, and I want to convey that to my board of directors, to my clients, to my consumers. After all, we’re in a slow period in the market right now. The market is down and The coronavirus outbreak was kind of wild and crazy, and certainly once the election was over and people calmed down from the election, regardless of insurance prices. We expect the market to recover in 2025,” Mirambel said.
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