House prices in Louisiana fell at the steepest rate of any US state last year, new data shows.
Between January and December 2023, the average property in the Bayou State dropped by $4,370 to $195,356.
By comparison, homes in Connecticut saw the biggest spike in values, rising by $33,293, according to Zillow data.
The findings come after a tumultuous year for America’s property market which saw housing affordability hit a 39-year low thanks to soaring mortgage rates and still-high house prices.
But fresh analysis by the New Jersey Real Estate Network shows how the picture varies drastically across the country. Researchers looked at how much the average home in each state was listed for in January 2023 and compared it with December 2023.
The New Jersey Real Estate Network looked at how much the average home in each state was listed for in January 2023 and compared it with December 2023
After Louisiana, Idaho saw the second-biggest drop in property prices, with the average home falling from $437,392 at the start of the year to $434,224 by the end. It marked a decline of $3,268, or 0.75 percent.
It was followed by Texas, North Dakota and Nevada which saw home values drop by $1,241, $895 and $448 respectively.
By comparison, the top five states to see the biggest house price increases were: Connecticut, Maine, New Hampshire, New Jersey and Rhode Island.
Maine saw prices shoot up from $356,515 to $385,019 over the course of the year – an increase of $28,504 or 8 percent.
Homes in New Hampshire increased by 7.49 percent from $416,055 to $447,215.
A spokesman for the New Jersey Real Estate Network said: ‘The spike in housing prices across certain states results from a mix of factors.
‘Economic vitality, job growth and population influx can drive demand, while supply constraints and low interest rates amplify the increase in prices.’
It comes after an unprecedented three years for the US real estate landscape.
During the pandemic house prices ballooned from $329,000 in January 2020 to $433,000 two years later, according to US census data.
Many families were embroiled in a so-called ‘race for space’ as they looked for bigger homes and gardens to spend lockdown. A widespread shift to working-from-home also unchained workers from their city center properties.
During the pandemic house prices ballooned from $329,000 in January 2020 to $433,000 two years later, according to US census data
In January 2022, the average rate on a 30-year fixed mortgage was hovering at 3.45 percent, according to government-backed lender Freddie Mac. It is around half today’s rate of 6.66 percent
But house prices have remained elevated ever since, with the median house price still hovering at $420,000 according to Realtor.com.
This is despite the fact mortgage payments have soared in response to the Federal Reserve’s aggressive campaign to hike interest rates to their current 22-year high.
In January 2022, the average rate on a 30-year fixed mortgage was hovering at 3.45 percent, according to government-backed lender Freddie Mac. It is around half today’s rate of 6.66 percent.
In real terms, it means a buyer today faces paying an extra $800 per month on their mortgage than if they had bought two years ago.
At the current rate, somebody purchasing a $400,000 home with a 5 percent downpayment faces shelling out $2,442 per month on a 30-year fixed mortgage.
But had they bought in January 2022 – when rates were hovering at around 3.45 percent – they would have paid just $1,696.
