Mortgage rates nationwide officially surpassed 7% in 2024. According to Freddie Mac, the average 30-year fixed mortgage rate was 7.17% as of the end of the week of April 25th.

Even though mortgage rates are relatively high, most experts believe they will fall throughout 2024 if the Federal Reserve lowers interest rates as suggested. However, we are unsure whether they will fall sufficiently to make purchasing a home more feasible.

Let's talk about Louisiana's housing situation - Following a period of high activity, the Louisiana housing market has been cooling since mid-2022 due to rising interest rates. Real estate agents in the state believe that home insurance, in addition to high mortgage rates, could further slow the market.

Between 2018 and 2023, home insurance rates in Louisiana went up a lot, nearly 25% according to S&P Global. Just from 2022 to 2023, they went up by over 21%. This has been tough for many people who want to buy homes.

Stephen Lovecchio, who owns an insurance company branch in New Orleans, says there are some legal issues with insurance and taxes on it. But the big reason for the rate hikes is the increase in severe natural disasters. Insurance companies are trying to cover their costs, but if they have to pay out for big storms, they raise rates.

Real estate agents across Louisiana are feeling the impact of rising insurance costs, as well as higher mortgage rates and home prices. According to Altos Research, home prices have increased from around $230,000 in April 2020 to $275,000 in early April 2024, slowing home sales.

In February 2024, 2,491 homes were sold in Louisiana, a 6.2% decrease from the same time last year and nearly equal to February 2020 before COVID-19.

So, will the housing market finally get better in 2024?

To make it happen, a few things need to change.

Keith Gumbinger, who works at an online mortgage company, says we need more homes for sale. This would help ease the high prices, maybe even bring them down a bit.

And, of course, mortgage rates need to come down too. As of April 25th week, they were at 7.17%, according to Freddie Mac.

But Gumbinger warns that if rates drop too fast, it could cause a rush of people wanting to buy, which could drive prices back up.He thinks if mortgage rates go back to a more normal range, like 4% to 5%, it could help the housing market get back to how it was between 2014 and 2019. But he says it might take some time to get there.

So what does this mean for you  right now as a home seller?

Consider the urgency of selling:

• If you absolutely must sell your home right away, be prepared for a potentially longer selling time and lower offers as a result of the previously mentioned factors (rising mortgage rates, high insurance costs, cooling market etc.,).

Strategies to potentially get a good deal:

• Price competitively: Look into similar houses in your area that have recently sold and consider asking a competitive price to attract buyers in a slow market - we can help you do that easily by setting up market reports and listing alerts within your area so you know what's going on in your market.

• Highlight unique features: To separate yourself from the competition, make sure your listing highlights your home's unique selling points.

• Stage your home: Consider staging your home to increase its appeal to potential buyers.expand_more This could include decluttering, increasing curb appeal, and making minor cosmetic changes.

• Work with a skilled realtor:An experienced realtor can help you price your home competitively, market it effectively, and negotiate with prospective buyers. They will also be well-versed in current market conditions and can provide you with sound advice.

Thinking of holding it out? Here’s your options!

• Wait and see: If you aren't in a rush to sell, you could consider waiting until the market improves. This could be an attractive option if you believe that mortgage rates will fall significantly in the future.

• Rent your property: Renting your property could be another option if you're not in a rush to sell. This can provide you with a steady stream of income while you wait for the market to improve.

On a final note, the best decision for you will be based on your unique circumstances.  Before making a decision, carefully consider the advantages and disadvantages of each option. Consulting with a qualified real estate agent who is familiar with the Louisiana market can also be extremely beneficial.We've serviced thousands of families over the last 20 years, and we'd love to help you decide on your next move.