New Orleans Area Home Prices Up?

Yes, according to an article in City Business.  Don’t get too excited.  One thing that being a data geek has taught me is that you can make numbers say almost anything you want them to. 

According to the article, there was an increase of 20.1% in home sale prices in Algiers from October to November and an increase of 5.4% on the West Bank of Jefferson Parish.  Sounds like great news. 

But, I have a couple of problems with this report.

• Agents notoriously don’t change the status in the MLS timely, so the actual average sale price has changed (dropped) due to additional closed sales being added to the database.  Pulling data before all of the sales are recorded is a lesson I’ve learned the hard way and the reason that I don’t put out market reports before the 15th of the month.
• One month of increased sale prices is not a good indicator of how the overall market is actually performing.  We track market changes over long periods of time to find trends.  One month is not a trend. 
• All of Algiers is being counted together, when the markets in Algiers Point, the 70131 zip code and English Turn are all different.
• All of West Jefferson is being lumped into one category/number, when each individual community is experiencing different results.  The reality for Harvey is completely different than the reality for Terrytown. 

If prices are really climbing, we will begin to see a gradual increase, coupled with a decrease in the inventory for buyers to choose from.  I’m not the voice of gloom and doom, but I don’t want anyone to get all excited about a reported increase in West Bank selling prices and think that they can throw their house on the market and get 20% more than they thought they could last month. 

Believe me, if that happens, we will be shouting it from the rooftops.

Keep up to date with new listings and sales in your neighborhood with this week’s free market snapshot.

West Bank real estate market reports

New Orleans West Bank homes for sale

Questions?  Contact the West Bank Living Team for assistance with any of your home buying or selling needs.  It would be our pleasure to assist you.