The Sanctuary continues to be one of the best residential real estate investments in southeast Louisiana. While 2022 saw the highest interest rates, inflation, and new homeowner policy insurance rates in 35 years, our neighborhood saw a 13% increase in the average sale price per square foot compared to 2021, and the number of home sales remained stable at 20 compared to 21. We end the year with two re-sale homes on the market, one to-be-built home for sale, and one to-be-built home that recently went under contract.
The “protective bubble” that I have spoken about in recent reports remains in place and will continue to protect The Sanctuary even if there is a national recession as many are predicting. Based on recent national and local trends, and national economic forecasts, I expect 2023 inventory levels and sales prices in The Sanctuary to reflect the 2022 numbers – an overall stabilization. It will still be an excellent time to sell and buyers who will be making a 5+ year investment will also fair well. And remember that approximately 70% of my sales over $1,000,000 this year were cash buyers and obviously not affected by interest rates. It will be interesting to see if that trend continues throughout 2023.
2022 saw 12 sales of vacant homesites, including 1 in The Preserve, compared to 15 in 2020, and the average sale price rose to $319,500 from $285,000 in 2021. Currently, there are only 2 re-sales available in The Sanctuary and 1 in The Preserve. There are 8 homesites owned by Lakeshore Homes, Forshag Construction, and H. Crosby Construction who offer quality homes and a library of plans that help jump-start the planning and building process.
The rest of Mandeville saw a 5% decrease in home sale prices since June when the spike in interest rates jolted the average buyer, but by the end of the year, the 2022 average home sale price was still up 11% over 2021.
There was some positive news nationally as the Federal Reserve recently slowed the pace of rate hikes, signaling that inflation may be starting to cool. Mortgage rates are currently about 1% lower than the high of 7.5% several months ago, and these declining rates “should encourage more home buyers to return to the market in early 2023.” Another encouraging sign is that the National Association of Realtors expects “the nation-wide median home price to stay flat in 2023.”
Finally, I am humbled to report that in 2022 Liuzza Realty Group represented the buyers and sellers of $25,000,000 of transactions in The Sanctuary. This is yet another record for my company and is $20,000,000 more than any other brokerage.
My commitment to you in 2023 is to enhance our exceptional service by making substantial investments in cutting-edge technology to guarantee that your home is marketed in the most exceptional manner possible, expanding our services with new partnerships in Mississippi and the Florida panhandle, and continuing to provide timely market analysis with my quarterly reports.
I appreciate your ongoing trust and confidence as we continue to work tirelessly to earn your business. The relationships that I have developed over my 16 years as a resident of The Sanctuary, combined with my company’s foundation of Experience, Professionalism, and Attention to Detail, makes me and Liuzza Realty Group uniquely qualified to represent you and the special properties of this community.
Wishing you and your family a healthy and prosperous new year.