Real Estate Market Update Baton Rouge, Louisiana September 2021
It’s The Biggest Topic in Real Estate…
Is The Market Starting To Cool Off? 🤔
New data shows the level of competition and ensuing price increases may be cooling off just slightly…
We have seen a drop in pending & closed homes sales from what we consider the highs this time last year… ⬇️
In Baton Rouge we saw a 9% decrease in closed home sales in the third quarter compared to Q3 in 2020…
But in context…We are still very much in a sellers market but we are seeing some early signs of softening…
Last summer we packed in a ton of business in those few months…
Frankly, 2020 was an erratic year and we knew it wouldn’t be sustained…
But our market today still a robust market… 💪🏼
Why are we in the market that we are in??
Well, when listings started coming back to market in 2020 we never saw the volume / count we saw come to market the years prior.
In 2021 we did see more new listings come to market, but still low in terms of a more normal supply and demand
We don’t have a buyer issue… we have a seller issue… if sellers continue to bring back listings we could see a wave of activity in the last quarter…
Another Big Topic is Affordability
People are concerned that homes aren’t as affordable. Homes simply aren’t as affordable as they were even a few months ago…
you aren’t going to get the same deal that maybe your friends did a few months ago…
BUT Rent prices have risen even more rapidly…
**So buying is still the BEST option… ✔️💯
Yes, homes are less affordable but not unaffordable…
Are we heading into a “normal” market??
I can tell you for sure that Today’s housing market is anything but normal
“Normal” is associated with a “regular pattern”…
and what we are seeing is not regular for the following 5 reasons …
1. rates continuing to fuel the demand… with a nationwide average of 2.87% on a 30 year mortgage
2. We have seen and continue to see Abnormal/ robust Price appreciation
3. Lack of available inventory is still one of our biggest challenges
4. We are still seeing low number for Average days on market
5. Number of offers per listing average 4.5 offers per listing nationwide 😳
As we wrap up …
we are expecting an unusually busy fall season 🍁- as folks are starting to put their homes on the market …
Buyers! … waiting will cost you more… 💰💰
The average home price forecast from experts is 5% next year… ⬆️
Even with the softening we are still seeing a robust market as we charge forward to last quarter of 2021 🎃 🍁 🎄⛄️
and looking ahead to 2022..
If you have any questions or you are thinking about buying or selling let’s connect 📱
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