Supply is Low and Demand is Rising!
The Advocate reported in mid-May that home sales were down in the Baton Rouge area, but buyer demand still exists. According to the article, sales dropped 12.6% in April compared to the previous year, but prices were holding up. There were fewer transactions because the coronavirus pandemic made it more difficult to buy and sell a home, but the demand still exists. Click here to read the full article, which also includes activity parish by parish.
♦ Since this article was printed on May 15, pending sales are up 18.6% in the Greater Baton Rouge area.
♦ We continue to see lower inventory, which means houses that are on the market are getting a lot of activity.
♦ Interest rates are still at an all time low, so buyers are still looking (especially first time homebuyers).
♦ I have noticed some unique trends in individual neighborhoods. In fact, many neighborhoods are seeing better DOM (days on the market) than this time last year. This means properties are selling faster!
♦ Rental activity has continued to remain steady throughout the pandemic, as many tenants still had leases ending, so investors haven't felt much of an impact.
This graph compares weekly average showings of homes for sale in 2019 vs 2020. As you can see, this year's pattern is much different than last year!
Curious what exactly this means for you?
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