This is beginning to seem like the new normal in the Akadian real estate market: rising property values, breaking monthly total sales records, and lots of hand-bargaining homes.
Sales in the region and Lafayette County hit record highs in June as the market hit half the year’s mark, and like other state and local markets, records are falling so often that they don’t even come close to making headlines as in years past.
With still historically low interest rates and growing inventory levels that cannot satisfy buyers, the market is likely to maintain this pace in the coming months.
Home sales are up 34.6% in the region and 40% in Lafayette County compared to last year, when the market was just picking up steam with the outbreak of the coronavirus pandemic, according to data compiled by Bill Buck with Market Scope Consulting. …
Average selling price – the average price of all homes sold – rose 12.5% in the region and 11% in Lafayette County.
“Are we entering a new normal with only records on the horizon? Until then, I would say yes, ”Buck wrote in his monthly report. “As we hit the record pace set last year in the third quarter, the gap between this and last year should narrow, but not dramatically. I still believe that interest rates are the key to how much demand we will experience. “
This new standard sometimes assumes that potential buyers are bidding on the selling price of a home or multiple bids coming in for a property shortly after it hits the market.
It could offend the buyer and seller, said real estate agent Michael Carr of Dream Home Realty. Real estate is selling so quickly that it is difficult for agents who work with the buyer to hold on, and those who represent the seller often have to wade through several offers.
“I would say the intensity has definitely increased,” Carr said. “If you’re really into this, you have no days off. If you are truly trying to provide good service to your customers, you must constantly monitor the market. You must be prepared to act on their behalf at all times. (Properties by comparison) are growing so fast that you should be aware of your listing prices. You cannot rely on anything that happened a few months ago. “
Inventories remain a challenge for the region, even with the number of new offers on the market and the growth in housing construction compared to last year. In Lafayette County, new offerings for June rose 12% overall, with new homes in existing homes increasing by more than 5% and new builds increasing by 33%.
What’s happening? Homes are sold this year for almost half (55 days) than a year ago (91 days).
“The last listing I put up last weekend was 15 offers in one day,” Carr said. “It’s still competitive. Very quick response from the buyer. We must be prepared to keep the pedal to the floor. Our biggest problem is inventory. We broke 1000 (accessible objects) – for quite a long time we were in the 900s. A year ago you had 2,400-2,600. ”
Other data from Bacque’s quarterly report showed:
- Markets in southern Lafayette County remain strong: east of Johnston Street, south of Ambassador Caffery Parkway and west of $ 90 account for nearly half of all homes sold.
- Construction hotspots continue to be north and south of Youngsville and east of Karencro. Almost 1 out of every 3 houses built were in these areas.
- Saint-Landry parish had the largest increase in activity outside Lafayette County, where 305 homes were sold, up 48% from a year ago.