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
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.
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.
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
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
look at the Lafayette Parish market indicates the market is still stable;
however, slight changes are being observed.
In November, I last took an in-depth look at the overall market trends for the Parish. The overall market at that time was indicating relatively stable trends. A couple of months later, we still see stability, but some metrics are indicating some minimal improvements.
Sales prices in December 2019 similar to those
in December 2018, but the number of closed sales increased by 6% and the days
on the market decreased by almost 11 days
Very minimal, but positive, movement in overall
sale prices for the year of 2019 as compared to the year of 2018
During 2019, some pickup in sales prices for
homes priced in the $300 thousands while other price ranges remained relatively
2020 is showing a good start for the year. Sales prices and the number of sales are up
quite a bit as compared to what was seen in 2019.
The first chart shows how the market was performing for December
2018 vs. December 2019. The median sales
price rose by 4.7%, while the average sales price declined by 3.4%. The statistics differ because the average is
affected by outliers, while the median is not.
So, in this data set, the lower-priced outliers are affecting the
average sales price.
The number of closed sales and the days on the market have
both had favorable changes. The number
of closed sales increased by almost 6% in December 2018. The chart is showing that there was a
negative change in the days on the market, the fewer days on the market the
better in real estate.
Year over Year:
The next chart shows the year over year trends for Lafayette Parish Market. The market is still considered stable because the changes in the median sales price, average sales price, and average price per square foot all have minimal change. The change is not enough to classify the market as increasing. Although most of the statistics are indicating a stable market, they are still moving in a favorable direction.
The only statistic that is showing an unfavorable result is
the months of housing supply. The months
of housing supply represents how long it will take to sell properties that are
currently active. The number of active
listings is growing faster than the number of houses that are being sold.
Percentage of Sales
Below is an interesting chart that shows the percentage of sales by price range over the past few years. What stands out here is that the majority of properties that are being sold have a sales price from $100,000 to $300,000. Also, properties that have sold from $300,000 to $1,000,000 have had an increasing portion of the market share in the past couple of years. As you can see, the number of sales of $1,000,000+ homes is so small that it does not even register on the chart.
The pie chart below shows similar information as the chart
above, but instead of showing the data as percentages, it shows the total
number of sales in each price range for 2019. The largest price ranges are
$100,000-$300,000 (75.04%). As you can see, the higher end price range takes up
a small percentage of the total market.
Percentage of Sales
by Age Range:
This next chart shows the percentage of homes in each age range. The age ranges are the ones used in MLS. What’s interesting here is that New Construction and 1 -3-year-old homes decreased from 2017 to 2019 in the Lafayette Parish Market. New construction has slowed down slightly over this time, which is consistent with the number of permits pulled over this time period. Although the percentage of sales decreased during this time period, they still take up the largest percentage of sales over this time.
Percentage of Sales
by Square Foot:
This next chart shows the percentage of sales for homes
grouped by the living area square footage.
As you can see from the chart, homes sold in Lafayette Parish are
typically between 1,200 sqft and 2,000 sqft.
The chart also shows that after 1,600 sqft, the larger the living area
of the home, the less of a percentage it takes up in the market place. While there are plenty of homes that have
over 2,800 square feet of living area, the number is minimal when compared to
the rest of the market. This is why the
chart shows homes with 2,800 square feet as having 0.0% of the sales.
2020 So Far…
The next chart is showing year to date sales. Although there is a limited amount of time in
this analysis because we just started the New Year, it is still interesting to
look at. Does anything stand out in the
I noticed a huge increase in the average sales price (62.9%),
with only a 5.5% increase in the median sales price. Could this be right? Well looking at the data a little more
closely, this year in Lafayette Parish there has been a sale for $1,408,486 and
one for $2,900,000. Last year the
highest sales price in the first 8 days of the year was only $479,000. This illustrates a little more clearly how
outliers affect averages, while typically, they do not affect the median.
The high sales have also affected the average price per
square foot in 2019. It shows that there
has been a 23.4% increase in using this metric.
Another positive factor is that the number of closed sales
has continued to increase from this time last year, which was also true for the
I hope that this analysis was informative for how the overall Lafayette Parish is performing. Hopefully, you have a more in-depth view of how the market is performing going into this New Year. I would like to hear your thoughts about the Lafayette Parish Market.
Remember that this analysis includes all sales in Lafayette Parish Market. If you are in the market to sell or purchase a home, it is important to look and see how your specific sub-market is performing. If I can be of assistance to you in the future for any real estate appraisal needs, please do not hesitate to contact me at 337.254.2215 or Lduple4@gmail.com.
Data Source: MLS, detached single-family homes sold in
I’m sure you’ve heard the question, “What are the first three rules of real estate?” The answer that many real estate professionals will tell you is “Location, Location, Location.” While this may be true, when it comes to valuing your home, appraisers typically use comparable homes with similar locations. When the comparables have similar locations, what else factors in to a home’s value and differentiates the value of one home from the next?
Living square footage:
Several factors come into play when valuing a home. One of the most important features of your home that affects value is the living square footage. Basically, the more living square feet you have, the more your home is worth. There are some instances where a home can be over-built and have too much square footage. However, most of the time, the more square footage you have equals more value.
Renovations and updates:
Another factor that can increase the value of your home is updates. Renovations can improve both the quality of your home and the condition of your home. I have seen investors purchase old, outdated homes and completely renovate them. Originally the homes would have linoleum and carpet flooring, wood paneling walls, formica counters, stock built cabinets, etc. After renovations, the homes have wood and tile flooring, sheetrock walls, granite or quartz counters, custom cabinets, etc. So, the renovations not only improve the condition of the homes (new materials) but the quality of the homes too (higher end finishes).
Other important factors:
Several other factors can affect the value of your homes: lot size, views, bedroom and bathroom counts, covered parking, amenities, etc.
Ultimately, the local market decides what factors influence the value and by how much. It is important to have the assistance of a local real estate professional to analyze the market and to determine which factors are/are not important in your market area. If you are considering buying or selling a home and want a reliable opinion of value, contact me at 337-254-2215.
Lane Duplechin, AGA
Candidate for Designation with the Appraisal Institute
One thing that I hear sellers say often is, the house down the street sold for “X”, therefore the value of my house is worth “X”, or something very close to “X”. While this statement could hold some truth in a newer cookie cutter subdivision, it is almost never true in most other subdivisions. Even in an older cookie cutter subdivision this statement most likely would not be true. The condition of a house has a big affect on the value of a home. Homes suffer different degrees of depreciation based on how a home owner maintains the home and the kind of updates that are made over the years. What if the home down the street has been remodeled? Instead of having the original tile or formica counters and tile and carpet flooring, maybe the owners updated the counters to granite, replaced the original floors with wood and new ceramic tile, and updated the bathrooms. So if your home hasn’t had any updates, then it most likely would not have a similar value to the home down the street, assuming that all other features are the same. Likewise, the house down the street may have been neglected and is in poor condition. Do you still think your property is worth the same as the one down the street? Probably not!
In a more custom built subdivision, your property most likely has other differences from the house down the street. Maybe your living square footage is significantly larger/smaller, the lot sizes could be much different, and/or the quality of your home could be superior/ inferior to the house down the street. Other differences include number of bedrooms and bathrooms, the type of covered parking (carport vs. garage), or the amenities that come with a property (covered patio/porch, fence, storage buildings, workshops, outdoor kitchen, pool, etc.) The living square footage, often referred to as Gross Living Area (GLA), is one of the most important characteristics that affect value. If the house down the street is 500 sf larger then yours, then this property might be worth a lot more than yours. If your property has a much smaller lot size than the property down the street, wouldn’t you think that your property is worth less? All of these property characteristics could play a role in the value of your home. They need to be analyzed by a professional to determine what kind of effect on value they have.
The truth is, is that every property is different and every market is different. If you are thinking of listing your property for sale, it is important that all of the relevant characteristics of your property are analyzed by an expert in your market. A certified appraiser has the training, education, and experience necessary to provide you with an accurate value of your home, which gives you a valuable tool in listing your property and in your negotiating efforts once the property is under contract.
How can we help?
If you have any questions or would like to get a free quote for your appraisal, give us a call at 337-254-2215 or reach out to us here: