HOUSING BRINGS ME A LOT OF ATTENTION
When I want attention, all I have to do is say I work at Coldwell Banker Gosslee. All of a sudden, I attract a crowd because everyone is so interested in what is happening with home prices and the housing market.
And the question I get most is, “Are we in a buyers’ or sellers’ market?”
Let me explain.
A buyers’ market is when there are so many homes on the market that the buyer can be choosy on which home they want and seller has so much competition that they cannot usually demand top dollar and/or entertain multiple bids.
A sellers’ market is the reverse. There are not enough homes to meet buyer demand giving the seller a negotiation advantage.
Normally, a six month supply of homes is a balanced market where neither side has a unique advantage.
The national number today is 4.3 months according to the November 21 Existing Homes Sales Report from the National Association of Realtors. That is up from 3.9 months a year ago, but still really tight. That is why nationally the median price of a home sold in October was $255,400 (up 3.8% from last October.) The lack of available homes – along with a rise in mortgage rates – also led to a decrease of 5.1% of sales from last year.
But these national numbers don’t help us much here in Northwest Louisiana. We are up in price. The 390 sales in Caddo, Bossier and Desoto Parishes in October was well ABOVE our five-year average of 345. These homes sold at a median (the middle) of $160,000 ( 5%). This is about $95,000 cheaper than the U.S. number.
For all of 2018 through October, our three parishes have a 5.5 month supply of homes – 2,173 on the market. We get to that number by dividing the number of homes available by the average number that sell each month over the last year (394).
But even this number isn’t really helpful for us because different price points are seeing drastically different results.
Thanks to the Coldwell Banker Gosslee Monthly Market Report that we issue each month, we have a solid understanding of what is occurring:
Through the end of October, there were 456 homes priced in this category which equates to a 4.8 month supply.
Through the end of October, there were 697 available homes priced in this category which equates to a 4.4 month supply. This was the most active sector in October with 217 homes added to the market.
Breaking down the numbers a bit more, we see that Caddo Parish is up 11% in sales in this price point - a total of 982 homes sold this year. Across the Red River, Bossier has seen a 1% increase to 627 homes.
North Shreveport has 38 homes on the market below $200,000 which is about 1/3 of all properties currently for sale.
This sector is the closest we have to a balanced market in Northwest Louisiana. Through the end of October, there were 489 homes priced in this category which equates to a 5.3 month supply. There were 150 homes in this range that came on the market in October.
The higher price ranges in Shreveport and Bossier did not see as many homes come on the market in October. This price range had 61 homes added to a 7.8 month supply of 245 homes.
The earlier story of activity in the $100,000-$200,000 price range is reversed in this sector. While Caddo Parish has seen 133 homes sold in the $300,000-$400,000 range, Bossier continues to boom with a 35% increase to 173.
I took a look at North Bossier and found that there are currently 26 homes for sale in this range, about 14% of the region’s total supply.
Shreveport and Bossier have more than a year’s supply of homes in this category which 125 homes currently for sale. 22 homes were added in October.
From a seller’s perspective, this is our most challenged sector. There are currently 161 homes for sale in this upper level. With only six selling per month this has created a 26.1 month supply. 28 more homes came on the market in October.
You can hopefully see why buying and selling a home requires an experienced real estate agent to help. Like our 1200 agents in Shreveport and Bossier City, I am happy to answer any questions you might have. Reach out to me at email@example.com