Parish and city property tax statements for 2022 were recently sent out. A nice little present for homeowners as we enter this holiday season! Ba-humbug! 😂
Property taxes are calculated by the local assessor’s office. There are several factors that go into the calculation. Check out https://lafayetteassessor.com/Home/Topics to get more details on the actual calculations. One of the primary drivers, though, is the property’s assessed value. This value is determined by a process called an assessment.
An assessment and an appraisal may be easily confused. Both are used to measure a property’s value. Each has a different intended use (or, purpose). Assessments are primarily for tax purposes. Real estate appraisals are used to determine the property’s appraised value. The appraised value is typically reflects the fair market value, or the amount a reasonable buyer might expect to pay for the property, at a specific point in time.
Typically, the appraisal process is more detailed and in-depth than an assessment. An appraiser closely evaluates the subject property’s unique condition, amenities, market, and location. When possible, the appraiser visits the house or property in person to get a thorough view of the specific property. The in-depth analysis and understanding of the unique property allow the appraiser to closely compare, or contrast, the property to others nearby.
Assessments estimate the property’s value. According to the Lafayette Parish Assessor’s website, real estate data and computer assisted mass appraisal programs are utilized to value properties. These type of computer generated valuation tools can be useful when ballpark estimates are need for thousands of properties. The models can have their downfalls (ask Zillow https://www.wsj.com/articles/zillow-offers-real-estate-algorithm-homes-ibuyer-11637159261), but we’ll leave that topic for another post.
The timing of assessments are also an important consideration. The real estate market and property values are constantly changing. The fair market value of a property today will most likely be different a few months from now. The Lafayette Parish Assessor’s website states assessed values must be updated at least every four years but may be updated yearly. It’s important to keep in mind the assessed values have the potential to be dated by several months or even years.
The local tax assessor websites have easy to use search tools. The links to local websites are provided below. Homeowners can see the assessed market value assigned to their property. It is important to keep in mind the value is just an estimate for tax purposes. Important real estate or financial decisions should not be based solely on the assessed market value assigned. There is only a need to act if you have reason to believe the “assessed market value” is HIGHER than the fair market value of the property. A higher value could mean you are paying too much in property taxes. If you do suspect your property’s assessed value is too high, the assessor’s office can provide steps to request a re-evaluation. Documentation such as an appraisal from a certified appraiser may be required as evidence. Our office can assist with this request.
Lafayette Parish: https://lafayetteassessor.com/
Vermilion Parish: http://vermilionassessor.org/
St. Landry Parish: https://www.stlandryassessor.org/Search
Iberia Parish: https://www.iberiaassessor.org/
St. Martin Parish: https://www.stmartinassessor.org/
Acadia Parish: https://www.acadiaassessor.org/
During October, there were 431 residential sales in the Lafayette MSA (referred to as “Acadiana” here). The number of sales were down 10% as compared to September and down 18% as compared to October last year. Sales volume is continuing its downward decline since it’s 2022 peak in May. The market typically shows some decline during the Fall months, but the change is significantly more dramatic this year. The number of sales is much closer to those from 2017 and 2018.
Sales in Lafayette parish were about 64% of the total for this Acadiana region. Since Lafayette parish represents such a large portion, we find it useful to analyze some of the metrics by looking at Lafayette parish by itself. The parish’s metrics and stats tend to vary slightly in comparison to the other parishes that tend to be more rural. We also analyze all the other parishes together without Lafayette parish. Since the individual parishes have fewer sales, the metrics tend to be “noisier” and move around more. Trends and stats can be more easily observed when the parishes are combined and/or the data is analyzed over longer periods of time.
It’s very evident sales volume within Lafayette parish is declining. This decline is driving much of the change within the Acadiana region. Among the other parishes, we see a downward trend but perhaps not as pronounced.
The median sales price in the Acadiana region was $232,000 for October. The average sales price was $247,000, but we’ll reference the median to minimize the variability with using averages. The median price has remained relatively stable within a range between $230-$234 thousand since July 2022. Unlike sales volumes, sales prices seem to be somewhat stable and still significantly higher than pre-Covid levels. Even in comparison to October 2021, the median sales price is about 2% higher.
Lafayette Parish’s prices trend similarly to the total Acadiana region, but the other parishes are showing some decline. The median sales price for the Acadiana parishes excluding Lafayette was $162,000 for October. While this is lower than the $175-187 thousand range in earlier 2022, the median sales price is still higher than October in the previous four years.
We’re also monitoring the trend of prices within the various segments of the Acadiana market. For example, the median sales prices for various size homes have the potential to trend differently. Currently, we’re not seeing a significant change in any of the size buckets. The largest homes (3,000+ square feet) represent the smallest percentage of sales and cover a wide range of property sizes, so the variability month to month is to be expected. Given the rising interest rates, we also recognize affordability is a concern within the market. We may see buyers opting for smaller homes, so it is important monitor trends within the size categories. We’re not seeing a significant change, yet.
Gross Living Area
Given the rising interest rates, we also recognize affordability is a concern for buyers. We may see them opting for smaller homes, so we’re monitor trends for gross living area (GLA). Monthly, even quarterly, averages tend to bounce around, so we must look for trends over a longer period. Post-Covid, average living areas of sold homes did increase within Acadiana. Average sizes have declined since the peak at the end of 2020, and the third quarter of 2022 declined about 2%.
Days on Market
The cumulative days on market (CDOM) averaged 39 days for October. The Acadiana market has seen this metric extend slightly over the past few months. In comparison to recent years, though, CDOM is well below average. The CDOM does vary depending upon sales price category. For example, houses sold between $150-250 thousand (33% of total sales) averaged 28 days on the market. Homes in the $250-400 thousand dollar range (30% of total sales) had an average of 47 days. Within the highest price range of $750 thousand and above, the average was 78 days, but these accounted for less than 10% of total sales.
Sales to List Prices
The sales to list ratio for Acadiana was 97% during October. The metric has moved around throughout the year but appears to have a downward trend.
Despite relatively stable sales prices, more than half (58%) of the sales in October sold for less than their original list price. This ratio has steadily increased throughout 2022; whereas the portion of properties selling for more than the original list price has contracted.
The size of the price reductions has stayed relatively stable, but there’s just more price reductions occurring. Of the properties with price reductions during 2022, the monthly average final sales price has ranged between 8-11% lower than the original list price. The ratio was 8.7% during October.
Data Source: Realtor Association of Acadiana FlexMLS as of 11/7/2022
Search Criteria: Residential properties with Status = Sold and Parishes = Acadia, Iberia, Lafayette, St Landry, St Martin, and Vermilion
Your home’s current market value could qualify for PMI (private mortgage insurance) removal. Don’t count on your lender reaching out to you! Monthly savings could be real $$$ in your pocket. Hire your own appraiser!!! The lender may opt for the cheapest valuation options that may or may not give the most accurate value.
#acadianaappraisals #appraiser #appraisal #lafayettela #lafayetteparish #iberiaparish #vermilionparish #stlandryparish #stmartinparish #realestate
💥36% of active listings in Acadiana have had a price drop💥
We’re monitoring stats like these weekly. These stats give us insight into how sellers (and buyers) are adjusting their expectations to the changing market.
📊This graphic shows parish by parish detail. In the bottom right chart, it’s interesting to see the magnitude of the price reductions by parish. For the active listings with price reductions, there’s average reduction of about 8% as compared to the original list price. This a price drop of about $22,000 on a $275,000 house.
❤️Let us know if you want to see more of this type of information by clicking the like button!❤️
- In a quantitative analysis, a process in which an appraiser chooses comparable sales or listings that display both superior and inferior elements of comparison to the subject property.
- A process in which an appraiser determines a probable range of values for a property by applying qualitative techniques of comparative analysis to a group of comparable sales. The array of comparable sales may be divided into 3 groups – those superior to the subject property, those similar to the subject property, and those inferior to the subject property. The adjusted sale prices reflected by the sales requiring downward adjustment and those requiring upward adjustment refine the probable range of values for the subject property and identify a value bracket in which the final value opinion will fall.
Home valuation tools like these simply use algorithms and generic data to “guess” your home’s value.
Automated systems do a poor job of valuing qualities and characteristics that are intangible. Fresh paint, remodeling efforts, quality building materials, etc. are most likely not considered. On the flip side, structural issues, deferred maintenance, and other worrisome issues won’t be reflected.
In fact, Zillow exited the home-selling business in 2021 after citing their own issues accurately predicting home prices. 🤔 https://www.entrepreneur.com/article/395528
Check out this article for more insight on the topic: https://www.fool.com/the-ascent/mortgages/articles/why-online-home-valuations-are-often-wrong/
The real estate market is constantly changing. If you are thinking about listing your property for sale, purchasing a property, or going through a divorce/estate settlement, it is important to have the most up-to-date information. Here are a few graphs and charts showing how the Saint Martin Parish real estate market has been performing (Look at the difference between 2020 and 2021!!!!).
New Saint Martin Parish Real Estate Market Update. Click the link to interactive analysis. https://public.tableau.com/views/St_MartinParishTrendsFeburary2022/Story1?:language=en-US&publish=yes&:display_count=n&:origin=viz_share_link
#AcadianaAppraisals #RealEstate #Appraiser #MarketUpdate #MarketExpert
Lane explains what to expect when the appraiser visits your property
We’re sharing a quick welcome video! We’d like everyone to know who we are and what we do!
Real estate appraisals typically involve an on-site property inspection. The appraiser will schedule an appointment in advance with the homeowner or real estate agent. During the site visit, the appraiser will generally make observations, take pictures, and measure the house.
It can be helpful to know what to expect while the appraiser is at your home.
- Measure, observe, and photograph the exterior – Appraisers use a variety of tools to measure the exterior of the house. Any other permanent structures such as guest houses or workshops on the property will also be measured. These measurements will be used to create a sketch, also known as a basic floorplan, of the house. The appraiser will also take pictures of the exterior and may make notes of his/her
- Observe and photograph the interior – The appraiser will need access to enter the house and any other permanent structures on the property. He or she will perform a walk-through of the home where access to all rooms and closets will be necessary. The appraiser will take pictures of each room. He or she will observe and potentially make notes regarding the quality and condition of the interior building materials and fixtures.
- Potentially check electrical outlets, appliances, window access, and other utilities – Appraisals completed for certain types of lending transactions, such as for FHA loans, have additional requirements. The appraiser may be required to confirm all utilities and appliances are turned on and function properly. This could include (but is not limited to) testing electrical outlets, turning on water faucets, checking the water pressure, opening windows, testing the HVAC unit, and making sure the appliances are in working condition.
- Potentially check the attic – The appraiser may be required to inspect the attic for specific lending transactions. It is important that the homeowner ensures access is available.
- Ask for additional details – The appraiser may also have specific questions for the homeowner or agent that could aid in the appraisal process. It can be beneficial to have details prepared regarding items such as recent renovations and/or any recent or needed repairs.
A few other helpful tips that ensure the process goes smoothly:
- Properly restrain pets – Appraisers get to meet all types of furry family members every day! Some typically friendly pets may not always welcome the appraiser in their territory. It’s recommended that all pets are appropriately handled during the appointment.
- Unlock sheds, outdoor buildings, etc. – The appraiser must look inside all permanent structures on the property. Everyone remembers to give the appraiser access to the house, but please don’t forget about the other buildings.
- Don’t worry about the house being spotless – The appraiser has observed homes of many varying conditions, and appraisers can professionally look past everyday clutter. Most importantly, the appraiser needs easy access to each room and with unobstructed views. Please keep in mind the photographs of the house will appear in the appraisal report.
If you have specific requests for the appraiser while visiting your home, please let us know! The appraiser appreciates the invitation into your home, and they wants to make the homeowners comfortable.
Please give our office a call if you have any specific questions about the site visit.
Simply stated, a sale is a property that has sold. A comparable, commonly referred to as a “comp”, is a recent sale that a reasonable buyer would consider as a good substitute for the subject property. Not all sales can be considered comps! A house that sold down the street doesn’t automatically get designated as a comp. That house could be a 3,500 square foot home on 2 acres with a pool, and it just doesn’t serve as a comparable substitute for the buyer’s 1,250 square foot house. (Also, very important to remember when using price per square foot as a guide.)
The comp selection process involves identifying properties that most closely align with the subject property. There is a small bit of discretion used, but a good comp should mark off the following four items:
- Location – A comparable will IDEALLY be located as close to the subject property as possible. For complex properties, however, comparables can be miles away from the subject property.
- Recency – Timing of the sale is important. It is preferred to use very recent sales. This is especially important in a changing market environment. There are situations where the best comparable sold is further in the past. Time adjustments, if supported, can be used if necessary for the older sales.
- Quality/Condition/Features – Comps are typically very similar in overall quality and condition as the subject property. The quality of finishes for each home is evaluated and aligned as closely as possible. If the subject property has high end finishes, comparables should be selected with similar high-end attributes. Likewise, a home renovated from the floors to the ceilings would not serve as a good comparable for a home with only new interior paint.
- Living Square Footage – All else equal, the best comparables will have a very similar living area as the subject. Accurate measurements of the subject property are very important so that the best sales can be selected as comparables. This accuracy is especially important when pricing a house using sales data.
Of course, it is easier to identify good comps for some properties than it is for others. The number of good comparables can be limited for complex properties. In these situations, it is often necessary for the appraiser to make adjustments for the varying property features.
Each appraisal is unique, but the overall general process tends to follow three general steps. Ultimately, the final opinion of value is what many people want to know, but the process to reach that final value is detailed and thorough. Here’s a brief overview of those three steps:
- Site Visit The site visit occurs when the appraiser visits the property. It is also commonly referred to as an appraisal inspection. Once we receive a request for an appraisal, our office will reach out to the homeowner or real estate agent to schedule a day and time for the appointment. The appraiser will perform a variety of tasks during the appointment. Some of the tasks will include measuring the exterior, making visual observations of the exterior and interior, and taking photographs of all the interior rooms. Appointments typically last 30-45 minutes but can be longer for larger and/or more complex properties.
- Offsite Research and Report Writing The offsite research is typically the most time intensive portion of the appraisal process. The amount and level of research varies by property, but the appraiser spends several hours at the computer working on each property. The subject property is closely examined, the market is analyzed, and recent sales are studied. The data is collected and summarized in an appraisal report format.
- Arriving at a Value Conclusion The appraiser arrives at the final value conclusion after all research and analysis has been completed. The opinion of value is often referred to as the appraised value. This value can be expressed as a single value or a range of values. It is documented within the final appraisal report.
To understand more about the appraisal process or how we may be able to assist you with your valuation needs, please reach out to us at 337-714-8378 or AcadianaAppraisals@gmail.com. We’re looking forward to hearing from you!
April 12, 2021
- Market continues to remain strong.
- Sale prices and sale volumes are continuing to increase.
- Days on the market are showing significant declines.
- 2021 has started strong.
As most of you probably already know, the Lafayette Parish residential real estate market continues to remain strong. Homes are moving quick, and sales prices are continuing to creep up. 2020 proved to be a strong year for this market despite the global pandemic, but the data trends for 2021 are setting the stage for what may look like yet another stellar year.
Data gathered from the Realtors Association of Acadiana’s database is summarized in the charts and graphs below. For purposes of this analysis, detached single-family housing data in Lafayette Parish through March 31, 2021 is presented. The commentary is focused on the last 12 months while highlighting the most recent quarter and month.
The metrics for the most recent 12 months are continuing to show favorable changes. Sale prices are steadily increasing. The number of closed sales increased by 640, or almost 20%, as compared to April 2019 through March 2020. The data strongly supports that houses are moving quickly with the average days on the market declining from around 3 ½ months down to about 2 ½ months. There was also a slight uptick in the average square footage.
The Monthly Price Metrics chart provides a good visual of the sales price statistics over time. It is clear the last 12 months have been on an upward trajectory. The increases can be attributed to a couple of factors. First, the limited inventory within Lafayette Parish is creating a low supply and high demand dynamic that drives up prices. Currently, there is approximately a month and a half of inventory within the market as compared to three to six months during 2016 through early 2020. Second, increases in construction costs have impacted values. Over the last nine months, costs have increased dramatically and have driven up the cost to build a new house. The differential between existing versus new home prices has widened, and as a result, the demand within the resale market has increased.
Looking more closely at 2021, the number of sales in the first quarter are 10% higher than January through March 2020. Even going back to 2017, the graphic highlights how well the start of 2021 was in comparison to recent years.
The Lafayette market has been very strong over the past 12 months. Even with a global pandemic, the housing market is strong. I have attached a few charts and graphs for my most recent Lafayette market update. They will show how the market has been performing over the past year and beyond. Keep in mind that the data only includes detached single-family housing. If you have any questions, please do not hesitate to contact me.
I hope that this Lafayette Market Update has provided you some good information. If you have any questions, please feel free to reach out to me. If you would like to share these charts and graphs, I ask that you disclose where they came from. You can check out my business facebook page here! If you are in need of an appraisal, you can click here for a free quote. Thanks for reading and I hope that 2021 is stronger than 2020.
(NERD ALERT) I have been working with new software to develop more dynamic and interactive charts. You can click on data points within the chart to see the stats at that time or for a particular location. I have included a couple of preliminary charts. Feel free to test them out and let me know what you think!
Thank you for checking out my St. Martin Parish Market Update. If you have any questions please do not hesitate to contact me.
If you are interested in how the Lafayette Parish or Iberia Parish market is doing, check out my previous market updates.
If you would like a free quote for an appraisal on your property, click here!
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You can check out my Facebook page by clicking here!
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If you would like a free quote on an appraisal, you can click here!
The Lafayette Parish Housing Market
It would seem likely that a global pandemic and a decline in the oil and gas industry would cause our real estate market to slow down dramatically. On the contrary, interest rates are now so low that they are offsetting the hesitation that one would assume market participants might have. Real estate trends continue to experience favorable changes.
For the month of May, there was a big dip in the number of closed sales as compared to what occurred in May 2019. The market seemed to expect the number of closed sales to be low since we had a stay at home order enforced throughout the month of April. But as predicted based on the number of pending listings in April, there has been a huge increase in the number of sold properties in June 2020. In fact, there was a 41% increase in the number of sales from May to June alone. Additionally, there was a 31% year over year increase in the number of closed sales for the month of June.
In the market area, favorable trends are being observed in both the median and average sales prices for year-over-year data and year-to-date data. However, the change is not enough to indicate values are increasing; therefore, our market is still considered stable.
The number of new listings and pending sales has passed the initial surge from the stay at home order ending. While there is a little more fluctuation with the number of new listings on a monthly basis, the trend line over the past six weeks is more stable than it was the previous month or two before that. Also, pending listings have decreased some from their peak six weeks ago, but the number of new pendings on a weekly basis is still higher than pre-pandemic numbers.
I hope this information is helpful for you in the market area. Let me know what you think!
Real estate trends continue to move in a favorable direction. The question is, how long will this last? With business continuing to operate below full capacity, will there continue to be buyers in the market area? So far the low-interest rates have been enough to keep the real estate market strong. We will continue to watch the real estate trends closely going forward and let you know of any changes we see.
I hope that you found some value in this presentation. Let me know what you think!
•The market is rebounding after the initial slow down
•The number of new pending sales is similar to pre-pandemic numbers
•New closed sales are still down, but this should change in the weeks to come
•The median sales price is improving year over year
•Year to date, we have more sales than this time last year
February 6, 2020:
An updated look at the Lafayette Parish Market indicates the market is still stable; however, slight changes are being observed.
Was January a busy month for you? Based on the number of properties sold, it most likely was for Realtors and Lenders in the Lafayette Parish Market. Sales in Lafayette Parish for the month of January are up BIG TIME from last year. In fact, there were more sales in January 2020 than there have been in the month of January for the last 10 years.
Last month, I took an in-depth look at the overall market trends for Lafayette Parish. The overall market was considered stable; however, there were some favorable statistics. This month continues the favorable trend.
- The number of sales in January 2020 increased by 73% in comparison to January 2019.
- The sales volume was 91% higher this January as compared to January 2019.
- Year over year trends continues to see favorable changes.
If you’re interested in some of the details and data, take a look below.
Monthly Data for January:
The chart below shows how the market was performing for January 2019 vs. January 2020. In this chart, the median sales price, average sales price, and average price per square foot all have favorable statistics. The median and average sold price is actually indicating that sales prices increased by a significant amount this January as compared to last January. Average prices can be affected by outliers such as a couple of $1 million+ properties, so the median sales price is often a better indicator.
Year to Date Sales Volume (Jan 1 – Feb 6):
In the chart below, you can see 2020 has a much higher sales volume than in previous years. In fact, sales volume is up 91% from last year. For both 2019 and 2018, there was a decrease in sales volume from the previous year. Interest rates could have something to do with this. For November 2018, the 30-year interest rate was (4.94%) the highest that they had been since February 2011 (5.05%). Since then, there has been a steady decline in interest rates. In January 2020, interest rates were mostly between 3.50% and 3.75%. This is making homes more affordable for consumers.
The chart below shows the number of sales in the area. Again, in January 2020, there were more sales than in the previous 10 years for the month of January. There was a 73% increase in the number of sales for 2020 as compared to 2019. Again, this is a favorable indicator for the market area.
Trending 12 Months Sales Volume (Ending on 1/31/2020):
In last month’s market update, the trending 12 months statistics were all favorable. The trend continues this month. In fact, the median sales price, average sales price, and the average price per square foot are all up from last month’s analysis. Although the analysis is indicating values are stable, the statistics continue to move in a favorable direction. This is good for sellers who are trying to sell their homes because it is taking less time to sell their homes and the sales prices are increasing.
So far it has been a strong start in the real estate market for 2020. The trend is expected to continue in the near future. At the end of January 2020, there were 307 pending properties in Lafayette Parish. This is a 16.7% increase from January 2019 that had 263 pending properties. With interest rates at a three year low, it is reasonable to expect this trend to continue for the first quarter of 2020.
If you have any appraisal related questions, please do not hesitate to contact me. 337-254-2215 or Lduple4@gmail.com
I hope everyone enjoys the Mardi Gras festivities over the next few weeks. Until next month, laissez les bons temps rouler!!!
Data Source: MLS, detached single-family homes sold in Lafayette Parish