Marx
Sterbcow,
a
real
estate
lawyer
and
managing
attorney
at

Sterbcow
Law
Group,
based
roughly
40
miles
north
of
New
Orleans,
insurance
costs
have
created
a
rapid
run-up
in
his
annual
premium.
He
paid
$4,700
in
2022,
$11,500
in
2023
and
received
a
quote
of
$28,000
for
2024.

“I’m
not
sure
what
else
can
be
done
to
lower
the
costs
other
than
to
increase
the
deductibles.
My
house
has
never
had
a
claim,
has
all
the
added
bells
and
whistles
to
help
mitigate
against
any
potential
claim,”
Sterbcow
said.

Although
Sterbcow
is
relatively
close
to
the
coast
in
the
New
Orleans
metro
area,
increasing
his
property’s
risk
for
hurricane
damage,
the
challenge
of
rising
insurance
costs
is
a
statewide
issue.

“There
are
some
legislative
issues
with
insurance
and
taxes
on
insurance,
but
there
is
no
doubt
that
we
have
had
more
severe
natural
disasters,”
said
Stephen
Lovecchio,
the
owner
of
the
New
Orleans
branch
of
insurance
firm

The
Woodlands
Financial
Group.
“The
insurance
companies
are
only
trying
to
make
a
nickel
on
every
dollar,
but
if
we
have
to
pay
out
for
a
$100
million
or
$200
million
storm,
rates
have
to
go
up
accordingly.”

Across
the
state,
agents
feel
these
rising
insurance
costs
on
top
of
higher
mortgage
rates
and
list
prices.
According
to


Altos
Research

data,
90-day
median
list
prices
have
risen
from
roughly
$230,000
in
April
2020
to
$275,000
in
early
April
2024,
contributing
to
the
slowdown
in
home
sales.

According
to

data
from


Redfin,
2,491
homes
were
sold
in
Louisiana
in
February
2024,
down
6.2%
year
over
year,
and
nearly
identical
to
the
2,492
homes
sold
in
February
2020
prior
to
the
COVID-19
pandemic.

Additionally,
the
state’s
90-day
average
Altos
Market
Action
Index
score
was
32.75
as
of
April
5,
2024
—
down
from
37.21
one
year
earlier,
but
nearly
identical
to
the
score
of
32.77
recorded
in
mid-February
2020.
Altos
classifies
scores
above
30
to
be
indicative
of
a
sellers’
market.

“Sellers
will
want
top
dollar
for
their
property,
but
we
are
seeing
buyers
starting
to
look
at
negotiating
things
like
closing
costs
or
buying
down
their
interest
rate,”
said

Jessica
Huber,
a

Keller
Williams
Realty
First
Choice
agent
based
in
Prairieville.
“I’ve
seen
buyers
ask
for
and
get
between
$8,000
and
$10,000
in
closing
costs
covered.
Prices
are
still
higher
than
they
were
previously,
but
at
least
in
my
area,
sellers
are
working
with
buyers.”

Another
indicator
of
the
slower
market
conditions
is
the
statewide
rise
in
inventory.
After
the
90-day
average
reached
a
floor
of
5,010
single-family
active
listings
in
mid-April
2022,
it
has
increased
to
12,028
as
of
early
April
2024.
In
comparison,
statewide
inventory
was
at
14,129
active
listings
in
mid-February
2020.

While
inventory
is
clearly
headed
in
the
right
direction,
local
agents
say
that
it
is
still
hard
for
buyers
at
certain
price
points
to
find
quality
listings.

“Inventory
feels
pretty
balanced,”
said

Josh
Foster,
an

EXIT
Realty
Southern
agent
based
in
Sulphur.
“I
think
we
are
running
close
to
about
a
six-month
supply,
but
one
of
the
things
we
are
still
running
into
is
that
there
is
still
not
a
lot
of
homes
in
that
sweet
spot
for
most
buyers
—
right
at
the
$200,000
to
$300,000
mark,
two
acres
with
three
or
four
bedrooms.
It’s
just
not
out
there.”

With
these
“sweet
spot”-type
properties,
when
one
does
come
on
the
market,
Foster
said
he
has
seen
some
multiple-offer
situations,
but
nothing
like
the
post-pandemic
surge
of
2020
and
2021.

With
transaction
volume
slowing,
agents
are
doing
everything
they
can
to
make
sure
the
deals
they
have
close
successfully.
For
most,
this
means
bringing
a

homeowners
insurance
agent
into
the
transaction
much
sooner
than
they
used
to.

“Now
we
are
getting
the
insurance
quote
before
we
even
submit
an
offer
on
a
house,
so
that
they
know
what
their
total
payment
is
going
to
be,”
Johnson
said.
“It
is
a
lot
more
legwork
than
before,
but
at
least
we
know
before
we
make
an
offer
if
the
client
can
even
afford
their
monthly
payment,
or
even
if
they
can
get
the
mortgage
because
the
insurance
premium
will
impact
their
debt-to-income
ratio.”

In
addition
to
helping
current
buyers,
agents
are
also
working
with
past
clients
to
help
them
manage
their
homeowners
insurance
costs.

“I’ve
had
people
call
me
to
list
their
house
because
they
can
no
longer
afford
their
insurance.
So,
I
have
been
teaching
people
about
the
need
to
shop
around
for
insurance,”
Johnson
said.
“I’ve
been
fortunate
that
I’ve
been
able
to
help
them
find
better
rates
so
that
they
can
stay
in
their
home.
Your
insurance
company
doesn’t
have
to
be
your
insurance
company
forever.”

Although
the
insurance
challenges
facing
Louisiana’s
real
estate
market
will
not
disappear
overnight,
agents
are
hopeful
for
the
future.
Under
current
state
laws,
insurance
carriers
are
banned
from
dropping
homeowners
who
have
been
customers
for
at
least
three
years.

In
late
March,
however,
the
Louisiana
House
of
Representatives
voted
to
allow
insurance
companies
more
leeway
in
dropping
homeowner
policies.
The
bill
still
needs
to
be
passed
by
the
state
Senate,
but
agents
are
hopeful
the
change
would
entice
more
carriers
to
offer
coverage
in
higher-risk
areas,
giving
homeowners
and
buyers
more
choices.

“The
reinsurers
see
this
rule
and
they
don’t
want
to
be
part
of
things
in
Louisiana
—
they
don’t
want
to
come
here,”
Johnson
said.
“So,
we
have
a
situation
where
we
don’t
have
competition
and
so
that
is
driving
up
the
prices
even
higher.”
 

Lovecchio
also
noted
that
he
expects
insurance
premiums
to
decline
in
the
coming
years.

“The
new
insurance
commissioner
is
allowing
companies
to
raise
and
lower
rates
a
lot
quicker,
so
hopefully
consumers
will
see
less
lag
time
on
their
rate
changes,”
Lovecchio
said.

“I
think
prices
will
moderate
a
bit
moving
forward.
We’ve
seen
them
stop
going
up,
so
that
is
good
—
it
is
the
first
step.
But
we
also
hope
some
more
carriers
will
enter
our
markets
and
bring
them
lower
because
we
really
need
rates
to
go
down.”