SO MUCH GREAT INFORMATION
If you love the real estate business, you likely love the real estate numbers.
While I’m a bit too young to remember the heyday of the massive real estate books that agents used to show listings, I definitely remember when real estate moved into the modern era and mounds of information became available. It sometimes can seem like overkill, so that’s why I love writing this monthly blog. I hope to make it simple.
Let’s start with a look at the National Association of Realtors Metro Home Prices Report for the second quarter of 2019. The update, which was issued in early August found that 91% of the major markets it studied around the nation saw year-over-year second quarter home price increases. Shreveport/Bossier City was one of those, but just barely as our median (middle) sales price was $172,400, up 0.2% over last year.
My boss Brad Gosslee always refers to our region as a “Steady Eddie” market where home prices really don’t change that much. And our affordability levels are some of the best in the nation.
While NAR reported that through April-through June, the median price of all U.S. homes sold was $279,600. But here in Northwest Louisiana, we are checking in at $107,200 less! That is awesome!
Want to feel even better? Check out San Jose/Sunnyvale/Santa Clara which was the most expensive market in the nation where the median price was $1.3 million. That is a long way from the most affordable market of Decatur, Ill., where a home costs $97,500.
And while I just spoke of the second quarter, NAR also shares its monthly Existing Home Sales Report which provides an even greater clarity as it isolates each month comparing it to the year before. I believe this is the best barometer of what is occurring.
NAR reports that the national median price of all homes sold in the U.S. in July was $280,800, which was up 4.3% over last July. The number of sales rose year-over-year by just 0.6% while inventory (the number of homes for sale) dropped to just 1.89 million available homes which is remains a very low 4.2 month supply.
Incredibly, the median home stayed on the market in July for just 29 days and 51% were sold in 30 days or less.
Let’s zoom in a bit more.
The South is the nation’s most active housing market where sales grew by 2.7% to what NAR expects will be a rate of 2.31 million homes sold in the region for all of 2019. Southern home prices rose 5.2% in July, the highest of the four regions, to $245,100.
Again, Northwest Louisiana compares very favorably as we are about $70,000 cheaper than all of the South!
Coldwell Banker Gosslee utilizes data each month from the Northwest Louisiana Association of Realtors to get a granular look at the housing market in Caddo, Bossier and Desoto Parishes.
We had a very strong July here with sales and prices rising with a slight uptick in inventory levels.
The biggest changes over last year is the continued reduction in sales at $200,000 and below countered by a dramatic rise in the mid and upper tiers. It’s a complete reversal to last year.
Across the three parishes, we’ve seen a 9.4% dip so far this year in the lower priced sector while homes priced over $200,000 are selling at an 11.5% increase.
Caddo’s numbers are even more pronounced in the upper end where the $200,000+ figure is up 17.5%. As for Bossier Parrish, its strength has been in the $400,000+ range, up a whopping 58.8% from a year ago.
Our region definitely needs this improvement in the upper end. As you may remember from my other posts, a balanced market is considered a 6-month supply of homes where neither buyer nor seller will have a distinct negotiating advantage.
While overall in our region, we are at 5.4 months (essentially balanced), but homes priced between $400,000-$500,000 have a 12.3 month supply (advantage buyers) and in the $500,000+ arena, there is an 18.9 month supply. Thankfully, both of those figures have come down a bit.
Looking at the overall July numbers, sales in the three parishes rose 6% while the number of available homes dropped by 10%.The median price for the month was $185,000, up 3% from a year ago. Our median days on market is a healthy 76.
As you would imagine, our tightest inventory is at the lower price points:
$100,000 or less: 4.5 month supply
$500,000 or more: 18.9
I want to close this month’s update by talking about mortgage interest rates. The continued drop of rates that have been averaging 3.6% for a 30-fixed mortgage has brought more prospective first-time buyers into the market. While most experts predicted interest rates would rise into the 5% range in 2019, the opposite has occurred and we are now nearing historical lows again.
This is great news for fist-time buyers!
These lower rates are also impacting the move-up buyer who previously was reluctant to give up their already low rates. But now that rates have inched down to historically low levels, those who have been in their homes for a while may be more comfortable buying a more expensive home, especially considering that sellers are likely willing to negotiate because of the backfill of more expensive homes.
If you want to take a look at EXACTLY what is occurring in about 25 different Northwest Louisiana neighborhoods, take a look at our amazing Coldwell Banker Gosslee community pages.
And, if you like real estate numbers like I do, you will love the Coldwell Banker Gosslee Residential Real Estate Report which compares the national market to what is happening locally.
I hope you are enjoying these market columns and hopefully I am helping you through the extensive information available.
If you have any questions, please ask any of our 150+ agents in Shreveport and Bossier City or reach out to me at firstname.lastname@example.org