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!!!!).
It’s time for the Lafayette Parish Market Update. It is important to know the analysis is only for Lafayette Parish and only includes detached single-unit properties. We will analyze the change in sales volume and the change for the median, average, and average price per square foot. We will also give some insight around the drivers of some of this change and some of the areas of caution.
The first chart shows the sales volume by month. The black bars represent the months of May. For May 2021, there’s been a 68% increase in sales volume for this month compared to May 2020. Lock down was in place during parts of May last year, but even compared to previous years, sales are up significantly.
The second chart shows the year-to-date sales volume. For January through May, there has been a 42% increase in sales as compared to both 2019 and 2020!!!
The next chart details the median price, average price, and average price per square foot. All three metrics are reflecting a favorable change for the past 12 months as compared to the previous 12-month period. It is important to note the average living area has increased by 2.8% over this time period. In a stable market with all else equal, we would expect the median and average sales price to increase with an increase to the average living area. The living area is one of the most influential characteristics when it comes to value, but it is not typically a one-for-one increase, though. There are other factors also contributing to the increase in prices.
The chart also highlights the significant increase in the number of closed sales and the decrease in average days on the market. The changes are even more significant than when we last looked at the rolling trends in March. The average days on the market for the past 12 months have fallen to about 68 days, and we expect to see this continuing to decline. During the month of May 2021, the average was only 37 days on the market.
The chart below highlights the trend for the median sales price, average sales price, and average price per square foot. This chart shows you how the metrics are increasing over time. There appeared to be a slight dip in the sales prices during December 2019 and January 2021, but there has been a significant climb since that time.
Change In Percentage Of Sales In Each Price Range:
The table below shows the percentage of sales in each price range. The price ranges are on the left side of the chart. The percentage of sales in each price range is tracked over the last eight years. In 2021, there has been some shift. Market share has decreased in the two lower price ranges, while the $500,000 to $1,000,000 price range has increased its market share slightly. This movement has also reflected in some of the changes highlighted in the rolling 12 –month comparison table.
There are a couple of items real estate professionals should keep in mind when reviewing data on a macro level for the entire parish:
The data includes ALL sales in the Parish. This includes properties that sold over a million dollars and properties that sold for under $20,000. If you are trying to value a property, it is IMPORTANT to look at the market segment which includes only properties that are similar to your subject property and that would attract the same pool of buyers. The various market segments within Lafayette Parish can indicate different trends. To rely only on this data and apply it to every property in Lafayette Parish is simply WRONG!!!
There are several factors other than just supply and demand that have caused the median and average sales prices to increase. First, data indicates the average size of the living area has increased over time. We expect the sales prices to increase as the living area increases even in a stable market where the supply and demand forces are not strong. Second, there appears to be a general shift to higher-end properties. Factors such as interest rates, the economy, and the job market must all be taken into consideration.
While values have increased for our market area, it is important to understand the data that you are looking at before making a blanket statement about the change. It is incredibly important to look at the market segment when determining how values have changed for the property that you are trying to value.
If you have any questions, please feel free to reach out to me. You can contact me by email at AcadianaAppraisals@gmail.com. You can also call or text at 337-714-8378. If you are a real estate professional and would like to join our private Facebook group, look for us at “Ask the Acadiana Appraiser”.
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.