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Coldwell Banker Gosslee's Local Housing Market Update Main Photo

Coldwell Banker Gosslee's Local Housing Market Update


We Still Need More Homes
Posted: September 28, 2020 by Jessica Wimberly

LAPTOPS AND HOMES HAVE SOMETHING IN COMMON

Do you remember when the coronavirus hit? Toilet paper and hand sanitizer became scarce. Now, more than six months later, I’ve read reports about similar shortages of canned soup and, believe it or not, laptops. Put homes on the market in that same category.

Demand has strongly outpaced supply.

I’ve been talking about home inventory for a while now, but the Shreveport/Bossier market is now even outpacing the national shortage of homes. The National Association of Realtors just reported that there are only 1.49 million homes for sale across the nation, down 18.6% over last year at this time.

And through the Coldwell Banker Gosslee Residential Real Estate Sales Report, we see that in Northwest Louisiana, we are off 36% over last year with only 1,305 homes for sale. Let me put this in perspective. Buyers have nearly 40% fewer homes to choose from. That is a dramatic number.

Our monthly supply of homes is just 3.2 compared to 5.2 months last year and a 6.1 month supply three years ago. As a reminder, a balanced market is considered to be six months where neither the buyer nor seller has a negotiating advantage.

Especially at the lower price points, we are definitely in a seller’s market. Buyers are competing aggressively against each, with sellers often receiving multiple bids on their property.

As you would expect, the lowest inventory is at the lower price points:

Price Range

Number of Available Homes

Month Supply (August 2020 vs. August 2019)

Total

1,305

3.2/5.2

Under $100,000

223

2.7/4.6

$100,000-$200,000

431

2.8/4.4

$200,000-$300,000

266

2.4/5.0

$300,000-$400,000

168

4.6/6.6

$400,000-$500,000

91

6.4/11.9

$500,000+

126

12.1/16.5

 

It is pretty simple to understand what is occurring. The historically low mortgage interest rates that have been below 3% for a while now are bringing in first-time buyers. They are gobbling up homes at the lower price ranges.

At the same time, we have a substantial “move up” market of those families who have purchased more expensive homes. This has been a “win/win” for these sellers. They have high demand when they sell. And when they buy, while the inventory levels at the higher prices has dropped dramatically, they don’t experience the same competition.

There is another stat that shows how hot the housing market is. Days on market showcases how long a home stays available before going into the contracting phase. NAR reports that the national median (middle) of all homes sold in August took just 22 days to sell, down from 31 last year, with 69% of all homes selling in 30 days or less.

How do we fare? Just a bit slower at 26 days, 29.7% less than last August’s 37 days.

As you would imagine, demand is having an impact on prices. The median price of all homes sold nationwide in August was $310,600, up 11.4% from a year ago. In Northwest Louisiana, where thankfully our median price is much lower at $195,900, we are up 10% from a year ago.

Much earlier in the year, we saw that while inventory was low and prices were rising, there was a slowdown in the number of sales. This is no longer true. Nationally, the current pace calls for 6 million homes to be sold in 2020, the highest number since 2006.

We are just as active here too. There were 497 August sales, our second straight month of record sales.  Since June, there have been 1,592 home sales in Northwest Louisiana, a stunning 46.7% of all 2020 sales.

So, if you see a Coldwell Banker Gosslee agent around town who looks a little tired, now you know why! It’s been crazy busy.

This chart compares what is happening in the U.S. and here in Northwest Louisiana.:

 

U.S.

(change over August 2019)

Northwest LA

(change over August 2019)

Median Price

$310,600/+11.4%

$195,900/+10%

Number of Sales

6.0 million/+10.5%

497/+4%

Inventory

1.49 million/-18.6%

1,305/-36%

Months’ Supply

3.0/-25%

3.2/-38.5%

Days on Market

22/-29%

26/-30%

 

I haven’t drilled down into our three Parishes recently, so here goes.

Desoto Parish, even though there are much fewer sales, is the percentage leader at +38% this year. Through the end of August there were 144 homes sold, 40 more than last year. All but 10 of the additional sales occurred in the $200,000-$400,000 range.

Caddo Parish is up just 1% for the entire year with 1,885 sales. Its most significant increases, about 19%, have been in the number of homes sold above $400,000.

Bossier Parish appears to be the greatest barometer of our overall market. While up 5% in total over last year with 1,377 homes sold, we are down by 2% in the under $200,000 price range. The “move up” market of $300,000-plus is up 19.6%.

I want to close this month by again reminding potential sellers that now could be a really good time to list your home. And working with a full-time agent makes the most sense.

Obviously your agent is crucial in helping you price your home correctly and prepare it for the market, but today, more than ever, the trusted advisor will help you navigate through a variety of potential challenges. This includes choosing between multiple bids, while considering the net price of each, understanding the potential impact of buyers with different mortgage types and the potential need to negotiate for more time as you prepare to move to your next home.

I know I throw a lot at you each month. As always, if you need more help or just want to talk things through, please ask any of our 150 agents in Shreveport and Bossier City or reach out to me at jessica@cbgosslee.com.

Enjoy the start of fall and Geaux Tigers!

 

 

 

 

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