NEW ORLEANS (WVUE) – The New Orleans Metropolitan Association of Realtors (NOMAR) hosted its annual Forecast Symposium, where real estate professionals gathered to discuss key factors impacting the housing market.
A major theme this year was Louisiana’s ongoing insurance crisis, which is severely affecting home sales and affordability.
Craig Mirambell, president of NOMAR, says soaring insurance premiums have become a central issue.
“Insurance prices are really outrageous, interest rates being high, the economy is slow, elections are coming up. We got a lot of negatives, but the good thing is homeowners have kept the equity in their houses,” said Mirambell.
Mirambell says Louisiana’s insurance crisis has been pulling down the state’s housing industry for the last two years. He believes the most recent hurricanes along the Gulf Coast can only complicate matters.
“Even though we didn’t get a direct hit here in Louisiana, seeing these come to our Southern friends, is ultimately not going to help our insurance rates at all assumably. So that wasn’t needed, the costs that are coming with that are ultimately going to keep prices high,” said Mirambell.
Those prices have made it very tough for some realtors to sell homes. That means less money is coming in.
“To be honest, I used to do real estate full-time. I do not do it full-time anymore because it’s just too hard. I have a family as well. So, I can’t put everything on these deals happening, because I need them to happen. If they don’t happen, then my clients aren’t happy and then family isn’t happy,” said Misty Frye of Frye & Melancon Realty in New Orleans.
INSURANCE CRISIS
Misty Frye has been an agent for 17 years and says the cost associated with a buying home in Louisiana can often put potential buyers on an emotional roller coaster.
“People can be tearful, they’re upset. They think they’re getting to the finish line and then something comes up and it’s like, oh no, you can’t do it, the insurance blew it out of the water,” Frye said.
Dr. Jessica Lautz was a featured speaker at this year’s symposium. She is an economist for the National Association of Realtors. She brought a broader view to the forecasting conference and said Louisiana’s real estate industry is facing several headwinds, including declining population.
“In most areas of the Sun Belt, we see a mass migration into those areas, but unfortunately Louisiana is not seeing that. So, we don’t have that in the New Orleans area. Job growth has not rebounded since before the start of COVID and that could be restricting people from moving here. Though what I have to say affordability is definitely in a better in a better scenario than what we see in other areas of the country,” said Dr. Lautz.
Despite the multiple challenges the New Orleans real estate market has faced in recent years, NOMAR’s board president predicted an improving market in 2025.
“I’m always an optimistic kind of guy. I like to bring that to our boardroom, our clients and consumers. Ultimately, we are at a slower time in the market right now. The market has been slow. We had an uptick in COVID that was kind of wild and crazy. Surely, it had to go down from there. Once, the election is over and people settle down from that, we expect the market to pick up in 2025 regardless of insurance prices.” said Mirambell.
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