Greater Baton Rouge Home Sales Mid-Year 2018 in review infographic
While 2018 began on a slow note, area home sales have caught up to some extent. NOTE: They are understandably down 7 percent from the abnormal real estate investor purchases post Great Flood of August 2016 in 2017. From 08/20/2016 to approximately 06/01/2017, thousands of flood-damaged houses were sold to investors for rehab and flipping or rehab and turning them into rentals. Total dollar sold volume decreased by only 1%. When you think about dollar sold volume only decreasing by 1 percent BUT total sales volume decreasing by 7 percent, you see just how high sales price are in 2018. And, remember that in 2017, there were a lot of investor purchases from $40,000 to $100,000 of flood-damaged properties.
The median sales price is up 4 percent or $7,600 versus 2017 and the average sales price is up $13,411 or up 6.3 percent versus 2017. Median sold price per sq ft gained $1.00 into 2018.
HOME SALES SLOWDOWN IN GENERAL
Yes, what these 2 charts don't communicate is word on the street from Agents. In February 2018, I saw this post on Facebook from a high performing REALTOR®, "Who else thinks we are in a BUYERS market?" Since then, I've heard of Agents showing homes up to 30 to 40+ times with no contracts being written by fickle potential buyers. Extremely high priced new homes in Ascension, those $479,900 for only 2400sf to 2500sf aren't moving like they used to, understandably. I mean seriously, are 2400sf to 2500sf new homes in Ascension going to cost $500,000 next year? The number of buyers who can actually afford these homes is questionable, and this is why some of these new homes are just sitting unsold. However, as I review purchase agreements for purchase appraisals, it's rare to see a home on the market over 50 days.
WHAT'S THE STATUS OF INVENTORY - AVAILABLE ACTIVE LISTINGS?
It's very difficult to make a broad statement on inventory! Currently, at mid-year and according to the chart below, we're still undersupplied with listings to some extent and in mainly certain hot locations. While this chart below shows we still face low inventory issues, Sherwood Forest subdivision 70815 currently has 56 active listings and 78 total listings. Broadmoor has 20 active listings. Shenandoah Estates 70817 has 20 active listings. Capital Heights 70806 only has 6 listings. MLS Area 42, 70815 and some 70816, has 194 active listings. While there are 320 active listings in Area 43, there are only 20 active listings in Shenandoah Estates, a subdivision with almost 3,000 homes. So, some micro-markets have an oversupply of active listings and some have too few listings. If I've seen oversupplies of listings, it's been in the over $600,000+ range, however, I'm not at all concerned about the stability of the luxury market.
Chart note:I credit Appraiser Chip Wagner for this idea.
NOTE: This infographic is based on "median" numbers whereas the chart below is based on "average" numbers. I always prefer to use "median" in my reporting, to eliminate or lessen the underinflation of odd sales prices to far extremes, such as $40,000 sales or the overinflation of rare million dollar sales or outliers.
Greater Baton Rouge Home Sales Mid-Year 2018 in review chart below
East Baton Rouge County, West Baton Rouge County, Ascension County and Livingston County or Parish, all home types (detached single family, attached single family and manufactured housing).
Download pdf here:
View 496 Slideshares of Greater Baton Rouge Housing Updates on Slideshare