December 14, 2023
Will home buying (or selling) be any easier in 2024? Ask 100 industry experts and get 100 different answers. What we do know is that market conditions in 2023 kept many potential buyers and sellers on the sidelines while interest rates and insurance premiums remained high, while home prices, locally, edged up around 2.5% on average. There is growing consensus that interest rates should trend downward in 2024, though no one expects a return to 2-3% rates. In Louisiana, the newly elected Commissioner of Insurance has already begun working with incoming legislators and engaging with industry executives to explore ways to increase the number of carriers writing homeowners policies, creating competition and driving prices lower.
Earlier this week, Jenna Smialek, New York Times, shared "Federal Reserve officials left interest rates unchanged in their final policy decision of 2023 and forecast that they will cut borrowing costs three times in the coming year, a sign that the central bank is shifting toward the next phase in its fight against rapid inflation." This is good news heading into the holidays as the instability in interest rates earlier this year proved to have more of a negative impact on home sales than rates that are higher but stable. With less volatility, consumer confidence grows.
Louisiana’s incoming Insurance Commissioner, Tim Temple, began working to build relationships with legislators and industry professionals to address two major insurance crises currently being felt across Louisiana: homeowners/flood insurance and a proposed consolidation of health insurance carriers. This double whammy is not unique to Louisiana - there are at least 8 other states are currently experiencing versions of the same dual-crisis including California, Florida, New York and several forest-fire prone western states including Colorado and Utah.
To get a sense of how diverse the opinions and projections are, here are a few of the most recent news reports and headlines:
Interest Rates | Economic Considerations
Dave Ramsey | “It’s Time to Buy a House…” | CNBC, December 3, 2023
3 Mortgage Rate Scenarios for 2024 | CBS News, December 12, 2023
Feds to start cutting rates in mid-2024 | NBC News, December 12, 2023
Feds unlikely to change direction, possible cuts later in 2024 | Reuters, Dec 13, 2023
From the analyst who forecasted 8% interest rates in 2023 | CNBC, Nov 27, 2023
5 Reasons to Buy now in spite of high interest rates | Realtor.com, Dec 5, 2023
If you were one of the thousands of buyers or sellers who paused or delayed their move, now would be the time to start a conversation with two industry professionals: a local lender and a leading real estate advisor - both experts in the New Orleans real estate market and invested in our local community.
For more information, contact:
Marty Brantley, Partner | VP Marketing/Operations
neworleans@evrealestate.com | +1 504-875-3555 ext 107
