Latter & Blum Logo A Flash Briefing of Your Local Market MAY
2020
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Want to know how corona virus shutdowns have affected your local real estate market? Click on the link to watch a Market Minute.

https://www.youtube.com/watch?v=Y5YZGus_oLk

Amadeu de Souza-Cardoso's 125th Birthday

Here are some hard Facts.

St. Tammany Parish:

1. Houses under contract from March-April rose 12.8% and were down only 1% from the same time last year.

2. The biggest change was in new listings, which was down a substantial amount from April of last year, at 34.4%.

3. However, May might prove to be a more productive month as the first 10 days of the month saw a 12.8% rise in new listings from the same time period in April.

IN APRIL:

--For Sale: 1378. Down 2.2% from March

--Sold: 308. Down 1.6% from March

Jefferson Parish:

1. Houses under contract from March to April dropped 25.2% and were down a whopping 37.1% from the same time last year. 

2. A massive rebound is on track as the first ten days of May have seen an 84.5% increase in houses under contract compared to the first ten days of April, the number going from 58 to 107. That is only a difference of -6.1% for the same time last year.

3. The same time period also saw a 34.6% increase in new listings.

IN APRIL:

--For Sale: 664 in April. Down 0.6% from March

--Sold:  258 down 15.4% from March

Orleans Parish

1. Pending contracts were only down 6.9% in the month of April, and are in fact up 55.6% in the first ten days of May compared to the first ten days of April.

2. The same time period also saw a 12.7% increase in new listings. 

IN APRIL:

--For Sale: 1127 in April. Up 1.9% from March

--Sold: 205. Down 24.6 % from March

Key Takeaways:

1. As is obvious, the corona virus shutdowns have affected harder hit areas of the market such as New Orleans and Jefferson Parish more than the less affected St. Tammany Parish.

2. As social distancing restrictions and government shutdowns ease, markets head for strong rebounds in the summer months.

3. Interest rates are still at record lows, which means it is a great time to buy.

 

The real Pink Panther: A record price of £52million for world's ...

Now for the fun facts:

The Pink Panther Jewel Thieves (coined by Interpol) is an international syndicate of highly organized professional thieves that operate in the underground criminal markets across the entire globe. They are responsible for some of the most elaborate heists in human history, netting an estimated $500 million worth of stolen gold, diamonds, and other precious jewels. In one heist alone at Harry Winston on December 9, 2008 in Paris, the Panthers made off with an estimated 80 million euros in stolen diamonds in a matter of minutes.

Known for their extreme planning and precision, the Panthers are estimated to have anywhere from 60 to several hundred members, almost all reigning from the countries of Serbia, Montenegro, Croatia, and Macedonia. Their heists have taken the form of armed robberies, stealthy night raids, and high speed getaways, all taking place within a matter of minutes due to the Panthers' extreme planning and precision, with one criminologist at Interpol describing their crimes as "artistry."

If you would like to read more of their specific heists, click the link below.

https://www.theguardian.com/uk-news/2013/sep/22/pink-panthers-diamond-thieves-documentary

 

And Lastly,

In leu of the summer months rapidly approaching, here is a great ode to the warm weather composed by perhaps the greatest American composer, George Gershwin, and performed by the King and Queen of Jazz, Louis Armstrong and Ella Fitzgerald. Enjoy.

https://www.youtube.com/watch?v=lnXLVTi_m_M

Ella And Louis: Jazz Music's Perfect Partnership | uDiscover

Hope you enjoyed!

YOUR LOCAL REALTOR

 

 

 

Think This Is a Housing Crisis? Think Again.

With all of the unanswered questions caused by COVID-19 and the economic slowdown we’re experiencing across the country, many are asking if the local housing market is in trouble. For those who remember 2008, it is certainly understandable to ask that question. However, it’s important to note there are a few key distinctions.

Many of us here in the Metro New Orleans, Greater Baton Rouge, and South Mississippi region experienced financial hardships back in ‘08. Perhaps you have friends or family members who lost homes and were out of work during the Great Recession – the recession that started with a housing and mortgage crisis. Today, we face a very different challenge: an external health crisis that has caused a pause in much of the economy and a major shutdown of many parts of the country. However, as GARDNER, REALTORS continues to report each week, there is still an active real estate market here at home. People are still buying and selling homes, and I’m proud to be a part of these dreams still becoming realities (albeit virtually). Yes, we are in a challenging time, but as GARDNER, REALTORS President and CEO Glenn Gardner wrote, the 2020 Housing Market is nothing like it was during the 2008 crash.

 

Let’s look at five things we know about today’s housing market that were different in 2008.

 

1. Appreciation

When we look at appreciation in the visual below, there is a big difference between the 6 years prior to the housing crash and the most recent 6-year period of time. Leading up to the crash, we had much higher appreciation in this country than we see today. In fact, the highest level of appreciation most recently is below the lowest level we saw leading up to the crash. Prices have been rising lately, but not at the rate they were climbing back when we had runaway appreciation.

 

2. Mortgage Credit

The Mortgage Credit Availability Index is a monthly measure by the Mortgage Bankers Association that gauges the level of difficulty to secure a loan. The higher the index, the easier it is to get a loan; the lower the index, the harder. Today we’re nowhere near the levels seen before the housing crash when it was very easy to get approved for a mortgage. After the crash, however, lending standards tightened and have remained that way leading up to today.

 

3. Number of Homes for Sale

One of the causes of the housing crash in 2008 was an oversupply of homes for sale. Today, as shown in the next image, we see a much different picture. We don’t have enough homes on the market for the number of people who want to buy them. Across the country, we have less than 6 months of inventory, an undersupply of homes available for interested buyers. Here at home, Glenn Gardner wrote:

“March 2020 MLS statistics for current housing inventory on the market in the Greater New Orleans region show only a 3.3 month supply (versus a 4 month supply in March of the previous year). This is considered a “neutral market’ meaning it’s currently neither a “buyer’s or seller’s market”. In 2007, there were far too many homes for sale nationwide which caused prices to tumble in most regions.”

 

4. Use of Home Equity

The chart below shows the difference in how people are accessing the equity in their homes today as compared to 2008. In 2008, consumers were harvesting equity from their homes (through cash-out refinances) and using it to finance their lifestyles. Today, consumers are treating the equity in their homes much more cautiously.

 

5. Home Equity Today

Today, 53.8% of homes across the country have at least 50% equity. In 2008, homeowners walked away when they owed more than what their homes were worth. With the equity homeowners have now, they are much less likely to walk away from their homes.

 

Bottom Line

The COVID-19 crisis is causing different challenges across the country than the ones we faced in 2008. Back then, we had a housing crisis; today, we face a health crisis. What we know now is that housing is in a much stronger position today than it was in 2008. It is no longer the center of the economic slowdown. In fact, it could be just what helps pull us out of the downturn.

Gardner President and CEO Glenn Gardner put it eloquently: “With all of the uncertainty in the world, let’s move real estate fears closer to the bottom of the list. We will continue to adapt, change and grow together, and we will be here (at least virtually, or in-person with six-foot spacing) when you need us.” For more information on the housing market during these difficult times, please contact me, your local expert at GARDNER, REALTORS today!

Garrett Shearman »
REALTOR
Garrett Shearman Cell
985-249-9154
Office
985-626-8589
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