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