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November
21

LAWRENCE YUN IS NOT TALKING ABOUT US
By Brad Gosslee, President, Coldwell Banker Gosslee

We are coming to a very special time of year as we celebrate Thanksgiving and the holidays with our friends and loved ones. And, of course, as a former football player who played at Byrd High School, I'm also pumped up that it's almost time for the Independence Bowl! I can't wait to see which teams and their fans are coming to Shreveport!

This is also a great time for me to take a moment and once again salute our Coldwell Banker Gosslee agents. For those of you who have worked with them, especially over the last couple of years during the pandemic-fueled real estate frenzy, you saw how dedicated and exceptional they are. Now with mortgage rates rising, their value will grow even more! As our company has been a fabric of the region for more than 60 years and the market leader for three-straight decades, our agents have been through numerous market changes. They are well-trained and ready to support buyers and sellers in a uniquely different market.

The story of rising mortgage rates is everywhere. It's obviously big news. But I came across a quote from National Association of Realtors Chief Economist Lawrence Yun that makes a lot of sense:

"More potential homebuyers were squeezed out from qualifying for a mortgage in October as mortgage rates climbed higher. The impact is greater in expensive areas of the country and in markets that witnessed significant home price gains in recent years."

Because our home prices are nowhere near San Jose's $1.4 million, Seattle's $750,000 or Austin's $550,000, the financial challenges may not be as severe for our buyers. While no one wants to pay more, Lawrence's point is valid. It's likely harder to pay $2,700 more a month for a loan than $400.

I say this because the median price for a home in Caddo, Bossier and Desoto Parishes is currently $212,000. Using Lawrence's views as a guide, here is a breakdown of what monthly loan payments would be in several markets – compared to earlier this year - assuming no extra fees or having a down payment.

Market

Median Price

Monthly Payment with 3.5% Mortgage

Monthly Payment with 6.76% Mortgage

Difference in Monthly Payment

San Jose

$1,400,000

$6,287

$9,034

+$2,747

Seattle

$750,000

$3,368

$4,840

+$1,472

Austin

$550,000

$2,470

$3,549

+$1,079

Northwest LA

$212,000

$952

$1,368

+$   416

 

His theory seems to be true in Northwest Louisiana judging by home sales too.

While the National Association of Realtors reports that home sales are down 28.3% in October nationally, we are down 24%. The reason it is so far off is because we were in blistering times a year ago. And to provide a comparison, I looked at some markets in uber-expensive California. The San Francisco market is off 37.5% and Los Angeles is down just about the same (39.8%).

Locally, for all of 2022 so far (not just October which I just described), there have been 4,475 home sales in our three parishes which is down 12% from the blistering pace of a year ago. But we are still up compared to more traditional times like 2018 (4,074) and 2019 (4,152) prior to the pandemic:

Price Range

YoY Number of Home Sales NW LOUISIANA
(% change over October 2021

YoY Number of Home Sales in Bossier Parish (% change over October 2021

YoY Number of Home Sales in Caddo Parish (% change over October 2021

YoY Number of Home Sales in Desoto Parish (% change over October 2021

Total

4,475 (-12%)

1,835 (-10%)

2,842 (-15%)

158 (+0%)

$100,000 & less

671 (-23%)

    166 (-1%)

479 (-16%)

26 (+4%)

$100,000-$200,000

1,407 (-10%)

436 (-26%)

925 (-22%)

    46 (-15%)

$200,000-$300,000

1,350 (-6%)

671 (-9%)

648 (-11%)

    31 (-3%)

$300,000-$400,000

578 (-1%)

351 (+1%)

198 (-5%)

29 (+12%)

$400,000-$500,000

251 (-3%)

138 (+8%)

99 (-14%)

14 (-13%)

$500,000-
$600,000

   1 04 (+25%)

    44 (+13%)

51 (+19%)

9 (+800%)

$600,000+

114 (+14%)

29 (+0%)

82 (+22%)

3 (0%)

 

As I said earlier, obviously higher interest rates are not what buyers or sellers want. Hopefully as the nation overcomes inflation, mortgage rates may come down. If you want to geek-out, pay attention to the 10-Year Treasury Note which is the greatest indicator of where mortgage rates are likely headed.

But in the meantime, our agents are working closely with our friends at Fairway Mortgage to show prospective buyers that 30-year-fixed rate loans are not the only option. In fact, here are some terms and loan options to understand:

  • You can refinance; "Marry the home…date the loan." I don't know who originally said this, but it's a brilliant line. The belief is that you can always re-finance your loan when they drop. Most economists predict this will likely occur in the middle of 2023.
  • Adjustable Rate Mortgages (ARMs): Because mortgage rates dropped so low during the pandemic, most took 30 or 15-year fixed rate mortgages. But ARMs give you a lower rate for a sizeable time period, usually 5, 7 or 10 years, before readjusting.
  • Buy Downs: Along with having a down payment to lower costs, you can also pay more upfront in your loan. This can lower your interest rate and thus the monthly payments.
  • Other options: There are several loans that aid buyers including those from the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA).

We have to remember that the need for a home will always be there. This is because life events will dictate moves including happy occasions like engagements and marriages, children and growing families, job promotions and new jobs. If you are considering buying a home, you owe it to yourself to speak with one of our agents. Northwest Louisiana is a very different place than the rest of the nation and having someone who understands our current market conditions will be a huge help to you. I promise!

Let's now get into the nitty gritty of what IS occurring on the real estate front in our wonderful area.

The first thing we have to understand is that home prices are slowing their pace of appreciation. You may remember that I've always referred to Northwest Louisiana as a "Steady Eddie" market where we would usually see a 2-3% increase in home prices each year. But because of the recent historically-low mortgage rates, the ability to work from anywhere and our amazing affordability, we saw demand far exceed supply and therefore home prices went up locally in dramatic fashion over the last couple of years.

We are now starting to slow down. We have had back-to-back months where prices were less than they were at the same time a year ago. This could be expected because we could not sustain such a red-hot market and the price declines are off of record highs.

In fact, if you compare the median home price we had in October 2021 of $218,500 to this year of October-only sales, we are down 17%. But remember that even at this reduced price, we are still ahead of 2018's $165,000. While I don't have a crystal ball, I don't see prices dropping to those levels.

Even with the slowdown, our annual price appreciation is 7% for all of 2022

But here is the rub. We still do not have enough homes for active buyers to consider. Sure our buyer pool has decreased and we don't have multiple bids at the same levels we had last year and into the early part of 2022, but we still have only 1,072 homes on the market which is 51% less than we had available at this time in 2018.

While I am excited to see our inventory increase, we do need more homes to come on the market. This is why the monthly supply stat is valuable. We know that over the last 12 months we have been averaging 447 sales a month. Therefore, as you will see in the next chart, our 1,072 homes on the market would only last 2.4 months.

And while buyers don't have to choose a home at the same quick pace they did previously and have a little more negotiating wiggle room today, we are still in a sellers' market.  A balanced market locally – where neither buyer nor seller has a negotiating advantage – is about 5-6 months. You can see we are still a long way from that mark:

Price Range

October 2022 Available Homes/Month Supply

October 2018 Available Homes/Month Supply

Total

1,072/2.4

2,173/5.5

$100,000 & less

215/3.3

456/4.6

$100,000-$200,000

253/1.7

697/4.4

$200,000-$300,000

271/2.0

489/5.3

$300,000-$400,000

128/2.3

245/7.8

$400,000-$500,000

71/2.8

125/13.4

$500,000+

134/6.3

161/26.

 

We are especially tight in the mid-tier price ranges. And, if/when mortgage rates retreat and more buyers came back into the market, we would see our supply dwindle further. This is why we also encourage potential sellers to talk with one of our agents. While we have moved past the top of the market, you may be surprised to know how your home has maintained its value.

One of the reasons for the market's slowdown is that higher rates pull out buyers at the lower end of the market. Also buying power dwindles and therefore others are forced to purchase less expensive homes. That appears to be occurring in Northwest Louisiana.

We saw 95 October sales at the $100,000 or less price point, the strongest October in this range since 2019. We had 18 more homes sold in this price range this year than last year, which is one of the main drivers for our lower median sales price. Remember, the median is the middle of all 1,072 homes sold last month. We also had 11 fewer $500,000+ homes. Therefore, our median price may be a bit skewed.

Here is a look at how we compare to the overall U.S.

 

U.S.

(change over October '21)

Northwest LA

(change over October '21)

Median Price

$389,100/+6.5%

$181,500 /-17%

Number of Sales

4.43 million/-28.5%
(annualized)

401/-24%

Inventory

1.22 million/-0.8%

1,072/+18%

Month Supply

3.3/2.4

2.4/1.8

Median Days on Market

21/18

20/10

 

I want to close by reminding you that the last two months of the year are normally two of the slowest in real estate. And while many buyers will take advantage of less competition, this is normally a time where families don't make changes and instead plan for the following year. In this case, a potential move.

I encourage you not to overwhelm yourself with everything you read on the web, including what we see on the national sites like Zillow and Realtor.com. It might create "paralysis by analysis." Instead, I encourage you to spend time talking to one of our agents. Get comfortable with the buying and selling process and what is occurring in your neighborhood today.

If you want to get even more insight, you can click here to get our Coldwell Banker Gosslee October 2022 Monthly Market Report

Please reach out to one of our agents or feel free to reach out to me at bgosslee@cbgosslee.com.

October
24

THE REAL ESTATE CONUNDRUM
By Brad Gosslee, President, Coldwell Banker Gosslee

I love the word "conundrum." Not only does it sound cool, but its meaning has always fascinated me. It means "a confusing and difficult problem or question." I guess I've always loved challenges. I get to use one of my favorite words in this month's blog because our current housing market is definitely a conundrum.

As you already know, I love analyzing the numbers of our real estate market while comparing and contrasting us to the overall U.S. And I am fascinated with what is going on today. And because the market is complex, I wanted to use more of a "bulleted" style to help explain what is going on as easily as possible:

First, let's address interest rates:

  • For a variety of reasons, mortgage interest rates have risen dramatically and quickly. While this is a huge shock for so many who got used to the rates being in the 3% range, we are still at relatively normal mortgage rate levels:
    • 1981 17.00%
    • 1985 12.96%
    • 1990 10.31%
    • 1995 9.13%
    • 2000 8.25%
    • 2005 5.66%
    • 2010 4.98%

Next, the supply of homes:

  • At the national level, there are currently 1.25 million homes for sale in the U.S. This is down 0.8% from a year ago.
  • In Northwest Louisiana, we are a bit different. We have 1,078 homes currently for sale. This is up 22% over last year's 881. While we are encouraged that the number is rising, we are still a long way from the 2,153 we had in September 2018.
  • The lack of inventory is one of the dramatic differences from the "Great Recession", the last time the real estate industry endured a downturn. In its Existing Home Sales Report, the National Association of Realtors made a point that the low inventory levels today are in stark contrast to the 2009-2010 downturn when inventory was 4-times higher than it is today.
  • Nationally, the supply of homes equates to a 3.2-month supply. This is up from 2.4 a year ago.
  • Locally, we are at 2.4 months which is up from 1.8 months a year ago. For comparison, it was 5.2 months prior to the pandemic. Remember, in most markets, including ours, we remain in a "seller's market" nowhere close to the 5–6-month supply we traditionally call a balanced market where neither buyer or seller has a competitive negotiation advantage.
  • Essentially the reason for the increase in month supply is not solely because of more homes coming on the market. We still need more supply. It's largely because the number of sales has declined.

This chart looks at our housing supply and breaks down where we stand at each price point compared to four years ago. Notice how low we are in the lower price ranges.

Price Range

September 2022 Available Homes/Month Supply

September 2018 Available Homes/Month Supply

Total

1,078/2.4

2,153/5.5

$100,000 & less

226/3.5

423/4.4

$100,000-$200,000

265/1.8

696/4.4

$200,000-$300,000

265/1.9

491/5.4

$300,000-$400,000

121/2.1

245/8.0

$400,000-$500,000

70/2.7

130/13.4

$500,000+

131/5.9

166/26.6

Let's get into sales:

  • Nationally, this was the 8th straight month of decline in the number of home sales. The annualized number of September sales was 4.71 million, which was down 1.5% from August and 23.8% over last September. Remember, last year was one of the most active real estate markets ever.
  • Locally, there were 416 September sales which was very similar to August (417). Last September there were 474 home sales. Our 5-year September average is 439. September marked the third month in a row where our sales were below that month's 5-year average.
  • And for the entire year, there have been 4,071 homes sales in Caddo, Bossier and Desoto Parishes. This is off 11% from 2022, which was our strongest year ever. We are currently at the second-best year ever locally.
  • In the U.S., homes stayed on the market for 19 days. It was 17 a year ago. 70% are still selling in 30 days or less. Locally, we are at 20 days, up from the ridiculously quick 8 days a year ago.
  • There are several reasons for the slowdown in sales:
    • The hot, pandemic-fueled market was not sustainable and had to slow at some point. And it has.
    • Mortgage rates.
    • We also must understand the cyclical trend of homes sales that slow after the spring/summer months.

The next two charts show what is occurring with sales for all of 2022 in the different price points and just September. You will see that sales at the lower price points are really off.

Price Range

YoY Number of Home Sales NW LOUISIANA
(% change over September 2021

YoY Number of Home Sales in Bossier Parish (% change over September 2021

YoY Number of Home Sales in Caddo Parish (% change over September 2021

YoY Number of Home Sales in Desoto Parish (% change over September 2021

Total

4,071 (-15%)

1,668 (-9%)

2,225 (-14%)

148 (+2%)

$100,000 & less

576 (-15%)

    146 (-5%)

407 (-19%)

23 (-4%)

$100,000-$200,000

1,280 (-23%)

394 (-27%)

843 (-22%)

    43 (-16%)

$200,000-$300,000

1,242 (-6%)

608 (-7%)

603 (-5%)

    31 (+4%)

$300,000-$400,000

535 (+1%)

325 (+3%)

184 (-3%)

26 (+7%)

$400,000-$500,000

235 (+4%)

126 (+11%)

96 (-4%)

13 (0%)

$500,000-
$600,000

99 (+36%)

    42 (+31%)

48 (+20%)

9 (+800%)

$600,000+

104 (+24%)

27 (+17%)

74 (+28%)

3 (0%)

 

Price Range

September 2022 Sales

September 2018 Sales

Total

416

358

$100,000 & less

73

89

$100,000-$200,000

132

133

$200,000-$300,000

122

86

$300,000-$400,000

50

36

$400,000-$500,000

16

10

$500,000+

23

4

 

Now, let's look at how supply vs. demand has impacted home prices:

  • The median home price in the U.S. in September was $384,800, up 8.4% from a year ago but behind June's all-time record of $413,800. This was the third-straight month of price declines.
  • September was the 127th-straight month of year-over-year price gains which is a record.
  • Locally, our median home price for all of 2022 is $215,000, up 9% from a 2021. In September only, the median price – the middle of all homes sold – was $200,000. This was up 4% from a year ago.
  • My belief is that while prices will likely continue to slow a bit, we will still finish year ahead of last year. But the percentage increase will likely not be in double-digits which we have seen for the past couple of years.

This chart compares much of what I just shared comparing us to the U.S.:

 

U.S.

(change over September '21)

Northwest LA

(change over September '21)

Median Price

$389,500/+7.7%

$200,000/+4%

Number of Sales

4.80 million/-19.9%
(annualized)

416/-12%

Inventory

1.28 million/unchanged

1,078/+22%

Month Supply

3.2/2.6

2.4/1.8

Median Days on Market

16/17

20/8

 

Now I can address the conundrum of the real estate market. We are not seeing a normal shift.

What traditionally occurs is that home prices rise to a point buyers begin to pull back. When this occurs, the number of sales drop and inventory increases. This increased competition "levels the playing field" as buyers have more choice and seller's who overprice their home won't attract buyers.

But today things are drastically different, largely because of our post-pandemic world. And the challenges are complex. Allow me to go back to the bullet-style to explain:

  • Unemployment is low and wages have increased. This gives us a robust potential buyer pool.
  • Until the rise in mortgage rates, buyers were incredibly active and multiple bids were routine. While there are fewer buyers today, there are still plenty of buyers looking for homes.
  • With higher monthly payments, many potential buyers need to look at lower price points. But, as I explained earlier, those are the ranges where we have the fewest choices thus limiting sales.
  • While there are also many at the lower end of the wage scale who may no longer be able to afford a lower-priced home, those with good jobs, while not happy at the rates, can still afford to purchase a home. They recognize they can always refinance their loan if rates drop. This is one of the reasons we are still seeing active sales rates in the upper-end of the market.
  • Current homebuyers, who likely have enjoyed great appreciation in their homes likely have historically-low mortgage rates. Many therefore are not willing to move.

The result of all of this is a bit of a stalemate. We are not yet seeing inventory rise to a level that equates to a buyer's market with lowered prices and plenty of choices. We still have a historically low supply of homes. And because the supply levels are low, the diminished pool of buyers still face competition.

With all of this, we must remember that we will always have home buyers and sellers. Engagement, marriage, births, new jobs and promotions, divorces, illness and unfortunately the loss of loved ones will always be there – the drivers of moves.

The market is complex. It is confusing. It can be hard to navigate. It is a conundrum.

I strongly encourage those interested in buying or selling a home to talk with one of our Coldwell Banker Gosslee agents to learn what is going on today. It can be overwhelming to understand current market conditions locally, along with what is happening in the market you might be moving to. Our agents are well-schooled in what is occurring in the market and working closely with their buyers and sellers.

So please, do yourself a huge favor and don't panic or become overwhelmed. Learn from our agents and get comfortable with the buying and selling process and what is occurring today.

While there is a lot of information available today, no national site or news outlet can properly explain what is happening here. Our agents are incredibly skilled at knowing what is happening community-by-community and neighborhood-by-neighborhood.

If you want to get even more insight, you can click here to get our Coldwell Banker Gosslee September 2022 Monthly Market Report.

Please reach out to one of our agents or feel free to reach out to me at bgosslee@cbgosslee.com.

September
26

BUYER RETREAT AT THE LOWER END
By Brad Gosslee, President, Coldwell Banker Gosslee

I'm a numbers guy. I always have been since my days at Byrd High School. I used to love when my dad Jimmy, who headed our company for many, many years, came home and talked about what was occurring with buyers and sellers – everything from the number of sales to home price increases.

I'm really lucky that my dad is still very visible in our company and we often talk about the real estate markets of today vs. yesterday. I believe our company, and are agents, are extremely well prepared for the market shift we are seeing today, largely because in our company's 60-year history and through the nearly 30-straight years of leading the Northwest Louisiana real estate market, we have lived through quite a few market shifts.

Our agents have the benefit of years of experience and understand that each market brings different buyer and seller behaviors. This knowledge is showing itself in the educated conversations we are having with our clients – and potential clients - today.

We are being proactive and transparent, sharing what is occurring today. Prior to July, our local real estate market remained in an overheated state. But in such a short time, we have seen things shift quickly, especially at the lower end of the market.

Yes, the real estate market story is now all about mortgage rates. Specifically, the rise of a 30-year fixed rate mortgage to near the 6% range that has caused many to abandon their search for a home.

The rise in mortgage rates is hitting especially hard for those looking to purchase homes at the $200,000 price point and below. This makes a lot of sense. Not including fees or other payments tied to a loan, when rates were 3.0% late in 2021 and into 2022, a monthly payment on a $200,000 home was $843. At 6%, this payment jumps to $1,199. Therefore, we can understand that unfortunately there will be some unable to afford that jump.

This shows in the number of area home sales. We are down 16% year-over-year in the $100,000-and-under category and 23% in the next highest bracket.

Last August, there were 542 homes sold in Bossier, Caddo and Desoto Parishes compared to 417 last month. This was dramatically below the five-year August average of 487. Along with July, this marks the first two months since COVID hit that we have seen home sales lag behind a month's 5-year average.

And while we are now down 11% in overall sales for all of 2022, we are still on pace for this to be the second greatest sales year ever in Northwest Louisiana. Our decline is not as severe as what the National Association of Realtors recently shared for the entire nation which is off 19.9% in sales to an annualized rate of 4.8 million.

The below chart for all of 2022 shows, the retreat is not as pronounced at the higher levels. Again, this makes sense. While those with larger incomes may not be happy with higher rates, they seemingly are able to be able to afford a higher monthly payment.

Price Range

YoY Number of Home Sales NW LOUISIANA
(% change over August 2021

YoY Number of Home Sales in Bossier Parish (% change over August 2021

YoY Number of Home Sales in Caddo Parish (% change over August 2021

YoY Number of Home Sales in Desoto Parish (% change over August 2021

Total

3,652 (-11%)

1,500 (-8%)

2,026 (-14%)

126 (-2%)

$100,000 & less

504 (-16%)

    121 (-8%)

365 (-19%)

18 (-14%)

$100,000-$200,000

1,496 (-23%)

358 (-25%)

754 (-23%)

34 (-26%)

$200,000-$300,000

1,194 (-6%)

551 (-7%)

539 (-6%)

    27 (+4%)

$300,000-$400,000

468 (+4%)

292 (+5%)

169 (0%)

24 (+20%)

$400,000-$500,000

219 (+7%)

118 (+13%)

88 (-2%)

13 (+18%)

$500,000-
$600,000

88 (+35%)

    35 (+21%)

45 (+29%)

8 (+700%)

$600,000+

93 (+26%)

25 (+32%)

66 (+27%)

2 (100%)

Let's look a bit closer into just August sales to see exactly where the high mortgage rates are having an impact. As you can see, overall there were 30 fewer sales last month compared to a typical August (2018). But the market was off by 75 in the below $200,000 range. Yet in every other price point, we are dramatically higher, a theme that has repeatedly played out since the pandemic began.

It will be interesting to watch how this plays out. We would expect that if there are fewer sales at the lower end of the market, that could create a lack of move-up buyers into the mid-range and above, and the higher price points might see a decline.

Price Range

August 2022 Sales

August 2018 Sales

Total

417

447

$100,000 & less

40

91

$100,000-$200,000

123

147

$200,000-$300,000

123

117

$300,000-$400,000

67

41

$400,000-$500,000

31

16

$500,000+

24

6

There is another thing that usually happens when market corrections like this occur. The number of homes on the market will rise. We are starting to see this happen, although we still have a long way to go to get back to traditional inventory levels. Yes, we have jumped from a record-low 667 available homes back in April to 1,032 today, but our monthly supply is still incredibly low at just 2.2 months overall. It was 5.4 months prior to COVID which was a solidly balanced market where neither buyer nor seller had a negotiating advantage.

Today, we remain in a seller's market – still far from the 5–6-month supply that equals balance in Northwest Louisiana. Remember, our inventory is much lower than what NAR shared about the nation overall where there are currently 1.28 million homes on the market which equates to a 3.2-month supply. It was 2.6 months last August.

Based on the below chart, it appears that while our inventory is rising, the demand – even if it is lower – is still strong enough. Homes that come on the market are still selling quickly. A year ago, homes were selling in an unheard of eight days. Today, we have jumped to 12 days, which is still off-the-charts low.

Price Range

August 2022 Available Homes/Month Supply

August 2018 Available Homes/Month Supply

Total

1,023/2.1

2,247/5.8

$100,000 & less

211/3.3

466/4.9

$100,000-$200,000

259/1.7

726/4.5

$200,000-$300,000

232/1.6

503/5.5

$300,000-$400,000

125/2.1

266/8.9

$400,000-$500,000

71/2.7

122/12.4

$500,000+

126/5.8

166/24.6

Nationally, 81% of homes that sold in August come off the market within 30 days with most doing so in 16 days, one day more than a year ago. Here is a full look at how we compare to the national scene.

 

U.S.

(change over August '21)

Northwest LA

(change over August '21)

Median Price

$389,500/+7.7%

$235,000/+16%

Number of Sales

4.80 million/-19.9%
(annualized)

417/-23%

Inventory

1.28 million/unchanged

1,032/+8%

Month Supply

3.2/2.6

2.2/1.9

Median Days on Market

16/17

12/8

I brought a new set of stats into the blog last month and want to revisit the updated Fannie Mae Home Purchase Sentiment Index (HPSI). Every month since 2010, Fannie Mae showcases what buyers think about buying and sellers about selling.

It's interesting that buyers believe that rising interest rates benefit them as the HPSI shows an uptick in positive responses on the "Good Time to Buy" column. That suggests surveyed potential buyers think that if rates rise and some retreat, that will slow the pace of the market, reduce multiple bids on a home and therefore greater opportunity.

Sellers were not as thrilled with the market changes as August showed the least confidence among potential sellers this year. Obviously, there is disappointment that we have moved from the top of the market:

Date

Good Time to Buy

Good Time to Sell

August

22%

59%

July

17%

67%

June

20%

68%

May

17%

76%

April

19%

72%

March

24%

74%

February

29%

72%

January

25%

69%

While market stats give insight into our local housing market, it is important to remember that people will always buy homes. While COVID allowed many to leave urban centers for more affordable surroundings and others "moved up," we may enter a more traditional market where people move because of life events – engagement, marriage, children, promotions, new jobs, and other moments.

Therefore, I want to provide some suggestions to both buyers and sellers:

  • Sellers: You remain in the negotiating driver's seat. While you may have missed the absolute top of the market, prices remain strong. You likely have seen your home equity increase dramatically over the course of owning your home. Homes that are priced right and in good condition are selling at a strong pace. We are also seeing the list-to-price ratio remain at 98% meaning that they are selling within 2% of the list price. Clearly, sellers and their agents are choosing the correct listing price that buyers can meet. If we see that number drift down quickly, that might indicate an unexpectedly fast shifting market.

Sellers are benefitting in an interesting way in today's market when they enter the buying phase. In many markets around the nation, the inventory levels are increasing at a swifter pace than here, giving buyers more options than they had months ago. Our agents are helping connect many sellers – and potential sellers – to great agents in their next destination so that they can get questions answered.

  • Buyers: I encourage you not to panic because of the rising mortgage rates. Not only will our agents provide you excellent counsel and represent you well, but they can also help answer your mortgage questions and connect you to a great mortgage professional including those at Fairway Mortgage. Remember, there are different ways to finance your home outside of the rising 30-year-fixed rate mortgage. This lending option was great when rates were at historically-low levels and you could lock in for years to come. But in other years, in other markets, buyers turned to other types of loans. And that is what is occurring today.

It's also important to remember that home prices will likely not return to pre-pandemic levels. Instead, the rate of increase will slow from the double-digit price gains we had over the last couple of years to more traditional numbers.

I want to close this month's blog by encouraging ALL who are considering buying or selling a home today to start the process by talking to one of our Coldwell Banker Gosslee agents. While there is a lot of information available today, no national site or news outlet can properly explain what is happening here. Our agents are incredibly skilled at knowing what is happening community-by-community and neighborhood-by-neighborhood.

If you want to get even more insight, you can click here to get our Coldwell Banker Gosslee August 2022 Monthly Market Report.

Please reach out to one of our agents or feel free to reach out to me at bgosslee@cbgosslee.com.

August
22

Shifting Seasons and Shifting Markets

Every year at this time my juices really get flowing. While I love the summer, this is my favorite time of the year. It's football season! LSU and the SEC, LA Tech and our other nearby schools, and, of course, our high school football season is here. Go Byrd!

Speaking of area football, how about the splash that our own Decoldest Crawford made promoting SOS Heating and Cooling in Lincoln, Nebraska! If you are an athlete with "house," "home," "bedroom," etc., in your name, give me a call and we can talk!

As our season turns to fall, we are seeing our real estate market also showing signs of turning. I want to start this month's blog by looking at the current supply vs. demand equation and what it means:

  • Demand
    • There were 433 homes sold in Northwest Louisiana in July. This was way below the 521 sold in June and the 598 sold last July. We also came in below the five-year July average of 505.
    • This was the first month since the pandemic began that we had come in a month compared to that same month the year before. This had to happen because the pace of the past two years was unsustainable.
    • The slowdown occurred for one simple reason: higher mortgage rates. When the pandemic began, mortgage rates reached all-times lows. But they have crept up. For a variety of economic reasons, they recently rose to the 6% range. But, over the last couple of weeks, we are seeing them come down and that is creating increased demand again as we near September.
    • Looking at the entirety of 2022 so far, there have been 3,231 homes sold in Northwest Louisiana, which is down 9% from this time in 2021 – the best year ever! But we are still tracking to have the second strongest sales year in history!
    • This chart shows exactly what is occurring at our different price points in Caddo, Bossier and Desoto Parishes. You will notice the biggest reasons for our sales decline is because of the lack of activity in the $200,000-and-less range. There were 59 sales of homes under $100,000 last month and 135 priced between $100,000-$200,000. A year ago, at this time, there were 320 homes sold combined in these price ranges:

Price Range

YoY Number of Home Sales NW LOUISIANA
(% change over July 2021

YoY Number of Home Sales in Bossier Parish (% change over July 2021

YoY Number of Home Sales in Caddo Parish (% change over July 2021

YoY Number of Home Sales in Desoto Parish (% change over July 2021

Total

3,231 (-9%)

1,300 (-7%)

1,830 (-11%)

101 (-6%)

$100,000 & less

464 (-14%)

    114 (-3%)

338 (-16%)

12 (-33%)

$100,000-$200,000

1,022 (-21%)

317 (-23%)

678 (-19%)

27 (-31%)

$200,000-$300,000

983 (-4%)

469 (-9%)

491 (-1%)

    23 (+15%)

$300,000-$400,000

418 (+4%)

250 (+6%)

149 (-1%)

19 (+19%)

$400,000-$500,000

188 (+5%)

100 (+10%)

78 (+1%)

10 (-9%)

$500,000-
$600,000

74 (+30%)

    28 (+17%)

38 (+19%)

8 (+700%)

$600,000+

82 (+28%)

22 (+47%)

58 (+23%)

2 (0%)

 

  • Supply
    • Northwest Louisiana entered August with 1,010 homes on the market. This was up 8% over last July. That is great news.
    • This equates to a 2.2%-month supply. Although way better than the 1.6 months we had in May, this is still really low. In fact, two years ago, it was 3.4 months and before COVID it was 5.4.
    • But it is still not enough supply and therefore homes continue to sell at an astonishingly fast pace. Our median "days on market" is just 9 days. This is the same number as a year ago. We are 5 days faster than the national average.
    • Take a look at this chart which breaks out our supply at the various price points compared to 5 years ago. The lower the month-supply, the greater a seller's market. Remember a 5/6-month supply is considered balanced.:

Price Range

July 2022 Available Homes/Month Supply

May 2018 Available Homes/Month Supply

Total

1,010/2.1

2,3,04/5.8

$100,000 & less

200/3.0

467/4.8

$100,000-$200,000

254/1.6

722/4.4

$200,000-$300,000

232/1.6

529/5.7

$300,000-$400,000

125/2.1

283/9.7

$400,000-$500,000

66/2.5

133/14.5

$500,000+

133/6.3

170/24.9

 

  • Prices
    • We've established that there is still buyer demand – although not at the record pace we once had.
    • We've established that our supply is still not enough to meet demand and provide enough choice for potential buyers.
    • Therefore, it is no surprise that our median price (middle of all July sold homes) was $220,000, an increase of 16% over last July.
    • Our region is just like 80% of the U.S. where we have seen double-digit price appreciation compared to last year.

Let's look at how our region compares to the U.S. utilizing the National Association of Realtors most recent Existing Home Sales Report. We are up in prices, off a bit in sales and selling at a faster pace with less inventory:

 

U.S.

(change over July '21)

Northwest LA

(change over July '21)

Median Price

$403,800/+10.8%

$220,000/+16%

Number of Sales

4.81 million/-20.2%
(annualized)

433/-28%

Inventory

1.31 million/unchanged

1,010/+8%

Month Supply

3.3/2.6

2.1/1.8

Median Days on Market

14/17

9/9

You may have noticed I bolded the price appreciation of 16%. I did this for a reason. While we have enjoyed record appreciation over the last several years, double-digit increases are not the norm. In fact, I used to call Caddo, Bossier and Desoto Parishes "Steady Eddy." We would creep along with small annual gains. We were the turtle to the hare of the East and West coasts which would see dramatic gains and losses.

Both buyers and sellers should understand this. A 3-5% price increase every year here has been the historical norm. That would mean today's $300,000 home would likely sell between $309,000-$315,000 a year from now.

Buyers have to understand that while we don't have a crystal ball, history tells us that the $300,000 home will not come down in price. Instead, it will increase in price by a bit.

This message is important for sellers too. We have likely passed "the top of the market" and seem to be returning to more normal times. Therefore, if you have been thinking of selling, you are still in a good position right now. You have likely made a lot in equity in your home. And the supply vs. demand imbalance remains in your favor. Also, for those looking to leave the region, the supply of homes in your next market is likely increasing. You may have more choices. Our Coldwell Banker Gosslee agents can help you connect with a great agent in that next community so you can get a handle on what's happening there.

What I have just been talking about is a fact-based, in-the-moment discussion. But home buying and selling a home is also an emotional decision.

That's why I would like to spend a few moments talking about Fannie Mae's Home Purchase Sentiment Index (HPSI). Every month since 2011, Fannie Mae showcases what buyers think about buying and sellers about selling.

Currently both buyers and sellers are at their most pessimistic points of the year. While in February, 29% felt it was a good time to buy a home, that number has dropped to 17%. That is clearly because of higher home prices coupled with higher mortgage rates. On the sales side, back in May 76% felt it was a good time to sell a home. Today it's just 67%. Obviously rising rates pulling some buyers out of the market is the rationale.

Here is what Fannie Mae has found for this year so:

Date

Good Time to Buy

Good Time to Sell

July

17%

67%

June

20%

68%

May

17%

76%

April

19%

72%

March

24%

74%

February

29%

72%

January

25%

69%

But we must put this in perspective. I went back and reviewed the HPSI for each July back through 2011. Looking at the below chart, it appears that unless home prices are at rock bottom, which they were as we came out of the Great Recession, buyers never really think it's a great time to buy. Especially today.

On the seller side, back in 2011 and 2012 when prices were at their historic lows, sellers knew it and therefore only 9% and 14%, respectively, said it was not a good time to sell. But as we came out of the recession, confidence returned and hit a peak last year – at the height of the pandemic-fueled boom – as 75% felt it was a good time to sell a home.

July

Good Time to Buy

Good Time to Sell

2021

28%

75%

2020

53%

45%

2019

26%

44%

2018

24%

41%

2017

23%

28%

2016

33%

20%

2015

61%

45%

2014

67%

43%

2013

74%

40%

2012

73%

16%

2011

69%

9%

If you are considering buying or selling a home – or even had a thought about doing so – I strongly encourage you to reach out to one of agents. The only way to learn is to ask questions. Your situation is going to be different from the next persons. Don't be afraid to ask.

Buying and selling a home is a major financial and emotional decision. Knowledge is powerful. We want to help!

If you want to get even more insight, you can click here to get our Coldwell Banker Gosslee July 2022 Monthly Market Report.

Please reach out to one of our agents or feel free to reach out to me at bgosslee@cbgosslee.com.

Geaux Tigers!

July
27

MORTGAGE RATES ARE DRIVING A MARKET SHIFT
By Brad Gosslee, President, Coldwell Banker Gosslee

We knew it would come but didn't know what it would look like. I'm talking about the potential end of one housing cycle and the beginning of the next.

The last few years have seen the real estate market hugely impacted by the pandemic. While so many took advantage of the "work from anywhere" phenomenon and mortgage interest rates dropped to record lows, our housing supply quickly reached all-time lows.

With soaring demand and low inventory, prices were sure to rise. And they did.

Today, seemingly overnight, we have seen some softening. This occurred because of rising mortgage rates that are the result of rising inflation that came about because of supply chain issues, the impact of the war in Ukraine and other factors.

We are starting see some potential buyers move to the sidelines because of increased costs. The U.S. Federal Reserve reports that with each rise of 1% in mortgage rates, buyer demand will drop by 10.4%.

But I want to state a few things at the start of this blog that are critically important to both buyers and sellers:

  • We still do not have enough inventory to meet demand. While sellers may have missed "the top of the market," they are still benefitting today.
  • Therefore, we are a long way from emerging out of a very strong sellers' market where that side of the transaction has a negotiating advantage.
  • Buyers need to understand that home prices are technically not coming down. Instead, the pace of percentage increase is slowing. Remember, home prices in Northwest Louisiana are up 11% over last June and 6% for the entire year.
  • Buyers should therefore not expect home prices to return to pre-pandemic levels. Here is an interesting fact. NAR just reported in its monthly Existing Homes Sales Report that the median price of all June home sales in the U.S. was $416,000. Just three years ago, the U.S. reached a then-record $285,700. Home prices would have to tumble 45.6% to reach those levels again. It's likely not going to happen!

I now want to touch on mortgage rates and what their impact is. Rates are currently bouncing between the high 5%'s and low 6%'s according to Fairway Mortgage. When rates were 3.5% a buyer who took out a $250,000 30-year fixed rate mortgage with 5% down had a monthly fee (not including taxes, insurance, etc.) of $1,066.  At 6%, that buyer is paying about $300 more a month each month.

It makes sense that unfortunately, a certain number of potential buyers would not be able to afford a home. Or they now set their sights on a lower-priced home. But for the overall majority of potential buyers, this increase is not an insurmountable hurdle.

For comparison, take a look at some of these annual average mortgage rates:

 

  • 1981 17.00%
  • 1985 12.96%
  • 1990 10.31%
  • 1995 9.13%
  • 2000 8.25%
  • 2005 5.66%
  • 2010 4.98%

 

This is why you will hear real estate professionals explain that today's interest rates are more normal that you might think. And our sales, while off of our record-pace, reflect that buyers are still buying as we are still ahead of our five year June average.

Last month, there were 521 sales in Caddo, Bossier and Desoto Parishes which was down 15% over last June. But we need some perspective. Last June was the strongest sales month EVER with 615 sales. We had never before even cracked the 600 sales mark in any month, in any year.

We are still ahead of pre-pandemic levels - June 2019 (452) and June 2018 (501) - by a nice margin. In fact, our 5-year average is 511 sales in June.

This next chart shows the "slowing" of sales as we are not seeing the huge percentage increases we saw for many, many months. At the same time, we must recognize that part of the sales challenge is simply not having enough homes to sell which is especially the case in Desoto Parish.

Price Range

YTD Number of Home Sales NW LOUISIANA
(% change over June 2021

YTD Number of Home Sales in Bossier Parish (% change over June 2021

YTD Number of Home Sales in Caddo Parish (% change over June 2021

YTD Number of Home Sales in Desoto Parish (% change over June 2021

Total

2,793 (-6%)

1,107 (-6%)

1,601 (-6%)

85 (-7%)

$100,000 & less

405 (-6%)

    102 (+5%)

293 (-8%)

10 (-41%)

$100,000-$200,000

885 (-18%)

266 (-23%)

594 (-15%)

25 (-22%)

$200,000-$300,000

858 (+1%)

402 (-5%)

439 (+7%)

    17 (+13%)

$300,000-$400,000

354 (+2%)

213 (+7%)

127 (-5%)

14 (-7%)

$400,000-$500,000

157 (+4%)

85 (+18%)

63 (-7%)

9 (-18%)

$500,000-
$600,000

64 (+33%)

    22 (0%)

34 (+31%)

8 (+800%)

$600,000+

70 (+27%)

17 (+21%)

51 (+28%)

2 (+100%)

 

To provide even greater insight, let me share a new term – "current pendings." These are properties that have entered the contracting phase. But they have not yet closed. In just two months we have dropped from 677 pending sales to 541. This could be a sign that a return to sales normalcy may be on the horizon.

Our local sales figures – at least on a year-over-year percentage basis – are very similar to what NAR is reporting nationally. Across the U.S., sales were down 14.2% compared to 15% here.

You will also notice in the below chart that our median home price increase is also similar to the U.S, 11% vs. 13.4%. But it is also great to know that our median home is more than $180,000 cheaper than the U.S. norm!

And while our inventory – the number of available homes for sale – is mirroring the U.S. market with a 3% increase vs. 2.4% nationally, you see with the month supply that we still have a critical shortage of homes at only 1.9 months. Just two years ago when the pandemic first began, we had a 3.6-month supply. It was 5.4 months prior to us having ever heard of the word "pandemic."

In most housing markets, a 6-month supply is considered balanced where neither buyer nor seller has a negotiating advantage. I've always felt our line of demarcation was closer to 5 months. You can see we have a long way to go to get there.

 

U.S.

(change over June '21)

Northwest LA

(change over June '21)

Median Price

$416,600/+13.4%

$232,000/+11%

Number of Sales

5.12 million/-14.2%
(annualized)

521/-15%

Inventory

1.26 million/+2.4%

910/+3%

Month Supply

3.0/2.5

1.9/1.7

Median Days on Market

14/16

7/7

 

We also need to be aware that homes went under contract in June in a previously unheard of 7 days. This speed is caused by the supply vs. demand imbalance. Northwest Louisiana is 2 times faster than the overall U.S. figure.

Another thing we want to pay close attention to over the coming months is the supply of homes at the upper-end, since those sales are largely predicated on the "move up" buyer. This next chart shows that our most expensive homes have the highest supply. While this is normally true because it takes longer to sell more expensive homes simply because the buyer pool is smaller, every move higher in supply would be indicative of a normalizing market at the lower to mid-tiers.

Price Range

June 2022 Available Homes/Month Supply

May 2018 Available Homes/Month Supply

Total

910/1.9

2,285/5.6

$100,000 & less

171/2.4

453/4.7

$100,000-$200,000

214/1.3

733/4.6

$200,000-$300,000

216/1.5

500/5.5

$300,000-$400,000

101/1.8

265/9.9

$400,000-$500,000

74/2.8

142/16.2

$500,000+

132/6.3

172/26.1

 

I want to close this month's blog, the same exact way I did last month.

I'm going to strongly suggest that EVERY potential buyer and seller speak with one of our agents. Get your questions answered. Gain a perspective of the state of the market.

Buyers can learn about how much they can afford and how to best work with a lender to learn about different mortgage options that can help get monthly payments where they need them to be. Remember, there are plenty of choices beyond a 30-year-fixed rate mortgage which became even more popular because rates have been so low. As they rise, the options are important. And, because we still have multiple bids occurring, our agents are preparing their buyers to effectively compete.

Sellers also need to learn how to effectively price and prepare their home for sale so it commands top dollar. We also must prepare for a day when homes don't sell as quickly as they are today. At the same time, as market conditions change beyond Northwest Louisiana, our agents are connecting sellers with agents in other cities who can provide insight about what's occurring in that next destination.

Buying, selling and moving are never easy. There are multiple emotional and financial decisions along with numerous steps. Doing it in a market like this is even harder. It's important to remember that there are no dumb questions. And we are here to help!

If you want to get even more insight, you can click here to get our Coldwell Banker Gosslee June 2022 Monthly Market Report.

Please reach out to one of our agents or feel free to reach out to me at bgosslee@cbgosslee.com.

I can't believe we are almost to August. My internal clock is already ticking. Football season is almost here!

 

June
27

GOING FORWARD AND SEEING BACKWARD
By Brad Gosslee, President, Coldwell Banker Gosslee

I can talk about the real estate market forever. It's fascinating! There are so many moving pieces and nuances that dictate prices and sales. And I love working with our incredible agents who have a laser focus into what is occurring in specific neighborhoods and price points as they help guide buyers and sellers.

This is one of those times where buyers and sellers really need our agents. Even though it may look similar, what is occurring in the moment is not quite the same as it was just a month ago. At the same time, what has occurred for the last several years throughout the pandemic continues to have incredible ramifications today.

Let's start with the basics. Sales activity remains strong, buyers are active and we still do not have enough homes to meet demand. Far from it. In fact, we are so far behind in that category that it will take us a while to go from our big-time sellers' market to a balanced one. But there has been a change that I want to address. While we don't yet have the supporting evidence in the full statistics, here is what is happening:

  • Mortgage rates have risen and now fall in the 5.75% to 6.25% range according to our friends at Fairway Mortgage.
  • The monthly payment on a traditional 30-year mortgage is therefore up and could be preventing some from entering the home buying process.
  • As we lose some buyers, we are seeing fewer multiple bids and properties with multiple bids. There is slightly less of a "frenzy."
  • If a home was priced to reflect the market conditions of even a month ago, the seller may reduce the price.
  • Over time, if more homes come on the market, many would likely stay on the market longer. Our supply would eventually catch up to demand.
  • Buyers would have more choices and sellers would not have the same competitive advantage they have today.
  • Slowly, but surely, we would return to a normalized Northwest Louisiana housing market where we again become a "Steady Eddie" market with gradual price increases.

But we are not there yet! Our sales are just off of record pace, inventory remains incredibly low, and prices continue to rise.

This month's first chart compares Caddo, Bossier and Desoto Parishes to the rest of the nation. Looking at the National Association of Realtors Existing Home Sales Report just issued, we know that the median (middle) price of all homes sold in May was a record $407,600, up 14.8% from a year ago. $407,600! We had an almost identical percentage increase but thankfully our median price is about $153,000 less!

Why have prices jumped so high? Supply vs. demand. In the case of real estate, demand can be measured in sales. Locally, there were 544 homes sold in May, down just one percent while the national levels were off about 8%. But take this in context. This was the second-best May EVER locally! We were six houses short of last May's record of 550 home sales. In fact, the five-year May average is just 479. And, for all of 2022 so far, while down 3% in total sales of 2,267, this was the second best first five months in our region's history.

 

U.S.

(change over May '21)

Northwest LA

(change over May '21)

Median Price

$407,600/+14.8%

$254,537/+14%

Number of Sales

5.41 million/-8.6%
(annualized)

544/-1%

Inventory

1.16 million/-4.1%

802/+2%

Month Supply

2.6/2.5

1.6/1.6

Median Days on Market

17/16

6/7

I wonder how high our sales figures would have been in May IF we had more homes to sell. We entered June with only 802 homes on the market. Here is a quick comparison to show you how low this is:

May 2022:        802
May 2021:        795
May 2020:     1,567 (the pandemic began two months prior)
May 2019:     2,097
May 2018:     2,222

Look at how tight things are at the different price points compared to four years ago:

Price Range

May 2022 Available Homes/Month Supply

May 2018 Available Homes/Month Supply

Total

802/1.6

2,222/5.7

$100,000 & less

164/2.3

440/4.5

$100,000-$200,000

212/1.2

716/4.5

$200,000-$300,000

173/1.2

501/5.6

$300,000-$400,000

75/1.3

259/8.9

$400,000-$500,000

72/2.8

142/16.7

$500,000+

106/5.1

164/23.2

Inventory levels are probably the most important statistic to watch to gain perspective on the market's future. The 802 listings available at the end of May was more than our record low of 667 in April. While up 20%, these additional homes were gobbled up at record pace. In fact, it took only six days for homes to sell! This is almost 3 times faster than the national mark of 17 days!

I want to zoom in a bit on what is occurring in sales. Several months ago on our next chart, we saw + signs everywhere almost always accompanied with double-digit growth. This was because of the pandemic-fueled economy that brought all-time low mortgage rates along with the work-from-anywhere phenomenon which made our affordable marketplace attractive to so many.

What also occurred was that we saw incredible activity at the higher price points. Because we had so many buying at the lower-end of the market, this allowed move-up buyers to take advantage of price gains and their equity, along with the low mortgage rates. Therefore, the higher-priced homes became scarce too.

At some point, we had to see these sales figures level off as we couldn't keep going up forever. And that's what has occurred, especially at the lower ends. But remember, even though our May sales are down, they are down of incredible highs.

Price Range

YoY Number of Home Sales NW LOUISIANA
(% change over May 2021

YoY Number of Home Sales in Bossier Parish (% change over May 2021

YoY Number of Home Sales in Caddo Parish (% change over May 2021

YoY Number of Home Sales in Desoto Parish (% change over May 2021

Total

2,264 (-3%)

873 (-7%)

1,324 (-1%)

67 (-8%)

$100,000 & less

341 (-2%)

     79 (-4%)

253 (0%)

9 (-31%)

$100,000-$200,000

741 (-15%)

227 (-20%)

495 (-12%)

19 (-30%)

$200,000-$300,000

699 (+3%)

316 (-5%)

369 (+12%)

14 (+8%)

$300,000-$400,000

269 (+3%)

158 (+5%)

99 (-1%)

12 (+9%)

$400,000-$500,000

117 (-1%)

65 (+18%)

47 (-15%)

5 (-38%)

$500,000-
$600,000

47 (+34%)

17 (-6%)

23 (+35%)

7 (+700%)

$600,000+

50 (+52%)

11 (0%)

38 (+81%)

1 (0%)

For the market to even out a bit, a reduction in the buyer pool will need to be met with more homes on the market. Otherwise, we likely won't notice a dramatic change in a shift to a more balanced market.

There is an adage in real estate that "you won't know the market has hit the top until we've passed it." Unfortunately, we likely had a lot of sellers who were trying to "time the market" and sell at the peak. My guess is that because of the rising mortgage rates, that time has passed. It will be interesting to see if this group decides it is time to list as they can also take advantage of greater home supply in their next destination – if they are leaving Northwest Louisiana and our slice of heaven.

This leads to one more adage - "sellers are usually the last to know." This refers to the fact that sellers will often believe their home is worth more than it is. Remember, the sales price will always reflect what an "able and willing buyer will pay." Our agents are working hard with their current and prospective buyers on the subtleties of today's market. When you see price drops, its usually indicative that the home was priced too high at the start and/or it was caught in an unforeseen market change (i.e., rising rates).

That's why looking at the list-to-sales price ratio is another great indication of the market's strength. Real estate agents strive to be as close to 100% as possible. For example, if a home is listed for $400,000 and sells for $400,000, that is a 100% list-to-sell ratio. If it sells for $390,000 that is a 97.5% ratio.

Our agents have done an incredible job in counseling sellers. We entered June with the region's agents coming in at 99%. I do expect this number to drop simply because it will take a while to adjust to a potentially changing market especially if mortgage rates bounce around a lot.

Therefore, I'm going to strongly suggest that EVERY potential buyer and seller speak with one of our agents. Get your questions answered. Gain a perspective of the state of the market.

Buyers can learn about how much they can afford and how to best work with a lender to learn about different mortgage options that can help get monthly payments where they need them to be. Remember, there are plenty of choices beyond a 30-year-fixed rate mortgage which became even more popular because rates have been so low. As they rise, the options are important. And, because we still have multiple bids occurring, our agents are preparing their buyers to effectively compete.

Sellers also need to learn how to effectively price and prepare their home for sale so it commands top dollar. We also must prepare for a day when homes don't sell as quickly as they are today. At the same time, as market conditions change beyond Northwest Louisiana, our agents are connecting sellers with agents in other cities who can provide insight about what's occurring in that next destination.

Buying, selling and moving are never easy. There are multiple emotional and financial decisions along with numerous steps. Doing it in a market like this is even harder. It's important to remember that there are no dumb questions. And we are here to help!

CLICK HERE to view the full May 2022 Residential Real Estate Market Report for Shreveport/Bossier City, LA. Please reach out to one of our agents or feel free to reach out to me at bgosslee@cbgosslee.com with any questions.

Hope you are enjoying the "official" start of summer!

May
25

MAY IS THE MOST IMPORTANT WORD
By Brad Gosslee, President, Coldwell Banker Gosslee

This is my May blog. And it's also an article that will use the word "may" over and over. That's because there remain a whole lot of unknowns about what may occur in housing over the near- and long-term future. But there remains one certainty…we are still in the one of the hottest and tightest times in real estate history that is especially challenging in Northwest Louisiana.

Let's start with today. We continue to see strong buyer demand met with a limited supply of available homes, causing continued rising prices.

I want to explain a bit more about the current market while I also look into the future of what may occur.

As you can tell from my blogs, I love digging into the statistics associated with the housing market. I believe the numbers give us insight into what is occurring and what may be coming down the road with prices, sales and the pace of the market.

One of the most telling numbers that indicates a down-the-road shift may be coming is in the number of home sales. The National Association of Realtors just came out with its Existing Home Sales Report looking at April sales and shared that the U.S. was down 5.4% in sales over last April. This was the third time in a row that the sales figures were below the previous month. And locally, our sales in April were down 8% over last year.

That rationale for a decrease in sales likely has a lot to do with the following:

  • Mortgage rates have ticked up. Locally, as I write this, we are around 5.3% for a 30-year fixed mortgage according to our friends at Fairway Mortgage.
  • Home prices have risen to record levels.
  • Prices and mortgage rates may be pulling some entry-level buyers out of the market.

At the same time, we are continuing to see the repercussions of a record low number of homes on the market. If there aren't enough homes for sale, logic would indicate we can't sell as many homes.

The buying frenzy of these last several years, which was fueled by historically low mortgage rates and the "work from anywhere" phenomenon, has never allowed for an already dipping pre-pandemic supply of homes to keep up. If we continue to see fewer buyers, we may start to see homes stay on the market longer, with fewer multiple bids and therefore prices would stabilize. After all, double-digit percentage increases are not sustainable.

But for now, we remain in dire need of more listings. I am hopeful that potential sellers who may have waited to "time the market" and sell at the peak, may recognize that we may be at that point and decide to list.

The inventory challenge has been exacerbated by another phenomenon of modern times – aging in place. The older generation, those 65+, have the highest homeownership rate according to the U.S. Census, with just under 79% in this age group owning their homes. This figure more than doubles the 38.8% reported for those under 35. But these older homeowners may not be selling. In fact, AARP reports that more than 90% of them want to remain in their homes.

It's just another piece of our inventory concerns. We entered May in Caddo, Bossier and Desoto Parishes with only 667 homes for sale. This was just a 1.3-month supply, and off nearly 78% from just four years ago. Even though 606 new listings came on the market in April, they are being sold really quickly. In fact, the median days on market locally for all sold homes was a ridiculously fast nine days, which was almost twice as fast as the national figure of 17.

We remain in the greatest "seller's market" of all-time. As this next chart shows, because inventory levels are so low, sellers have a huge negotiating advantage. You can see that by comparing back to 2018.

Four years ago, we had a very balanced market at our lower price points – at or near the six-month supply. In this environment, neither side has a negotiating advantage. The script flips to the buyer's advantage when there are more properties available than buyer demand. Taking a look at the chart below, this is evident in the higher price points in 2018. You can also see how severe today's lack of inventory is:

Price Range

April 2022 Available Homes/Month Supply

April 2018 Available Homes/Month Supply

Total

667/1.3

2,289/5.9

$100,000 & less

148/2.0

523/5.4

$100,000-$200,000

172/1.0

728/4.6

$200,000-$300,000

144/1.0

494/5.6

$300,000-$400,000

64/1.1

261/9.2

$400,000-$500,000

51/1.9

132/14.9

$500,000+

88/4.7

160/23.4

 

Now let's address sales and demand. While we are off a bit from last year, remember a year ago our frenzy was at full capacity. There were 469 home sales in April in Caddo, Bossier and Desoto Parishes. The drop of eight percent was off a record 510 a year ago. But if you look at our five-year April average of 426, we are actually running 10% ahead. So the demand is still there!

What's also interesting locally is that if we were selling more at the lower price points, we would be at record level pace. As this next chart shows, the move-up segments above $200,000 continue to show incredible sales strength.

Price Range

YoY Number of Home Sales NW LOUISIANA
(% change over April 2021

YoY Number of Home Sales in Bossier Parish (% change over April 2021

YoY Number of Home Sales in Caddo Parish (% change over April 2021

YoY Number of Home Sales in Desoto Parish (% change over April 2021

Total

1,723 (-4%)

649 (-10%)

1,021 (0%)

54 (-11%)

$100,000 & less

281 (+5%)

    66 50 (0%)

208 (+9%)

8 (-27%)

$100,000-$200,000

573 (-18%)

173 (-25%)

308 (-12%)

15 (-42%)

$200,000-$300,000

530 (+5%)

233 (-6%)

285 (+17%)

    12 (+0%)

$300,000-$400,000

194 (-1%)

112 (-2%)

74 (0%)

8 (0%)

$400,000-$500,000

84 (+12%)

48 (+55%)

32 (-22%)

4 (+100%)

$500,000-
$600,000

34 (+21%)

    11 (-35%)

17 (+55%)

6 (+400%)

$600,000+

27 (0%)

6 (-40%)

20 (+25%)

1 (+100%)

 

This is also the second straight month where we are not seeing dramatic increases in the number of sales over the previous year. In fact, because 2021 was such a strong sales year, we are even seeing large swings to the negative. But I urge you not to read into these shifts too much since they are compared to record levels. I am more focused on the price points that are still showing positive increases. A few months ago, we were seeing most of these in the plus 50-80% ranges. We are not seeing those same dramatic increases today. This may be an indicator that we are entering a more normalized market.

 

As you would expect with demand (buyers) still high being and a lack of supply, prices would continue to rise. And that is exactly what has occurred here and throughout the U.S.

Nationally, home prices have risen to a record median price of $391,200, up 14.8% over last year. For comparison's sake, it was $255,300 at this time in 2018. Locally we saw a similar April increase of 11% to $218,000. Thankfully our median priced home is $172,000 cheaper! Once again, the affordability of Northwest Louisiana is visible.

This next chart shows how we compare to the U.S. As you can see by what I've highlighted, our supply and pace is drastically lower than the nation:

 

U.S.

(change over April '21)

Northwest LA

(change over April '21)

Median Price

$391,200/+14.6%

$218,000/+11%

Number of Sales

5.61 million/-5.4%
(annualized)

469/-8%

Inventory

1.03 million/-10.4%

667/-14%

Months Supply

2.2/2.3

1.3/1.6

Median Days on Market

17/17

9/10

 

I wanted to close this month's blog with a portion of the actual script from our radio ads that run on our local radio stations. It addresses a seller's needs:   

NOW…MORE THAN EVER…SELLERS NEED A HIGHLY SKILLED….FULL TIME AGENT…..WHO IS WELL TRAINED ON PRICING AND NEGOTIATING MULTIPLE OFFERS.

THAT'S WHAT YOU WILL FIND IN A COLDWELL BANKER GOSSLEE AGENT…

REMEMBER…NOT ALL AGENTS ARE THE SAME…

YOUR TRUST HAS ALLOWED US TO BE THE #1 BROKERAGE IN NORTHWEST LOUISIANA FOR 29 STRAIGHT YEARS.

This is not just marketing speak. It is the truth. Sellers face different challenges today than they ever have, including managing the nearly daily changes in prices along with the ability to properly choose and negotiate with the right buyer.

I am confident that our agents are the most skilled in the region and I applaud them for continuing to train, learn and grow.

Remember, there are no silly questions. If you have any, please reach out to one of our agents or feel free to reach out to me at bgosslee@cbgosslee.com.

Hope you have a great Memorial Day start to summer!

 

 

 

April
26

WE ARE TIGHTER THAN THE NATION
By Brad Gosslee, President, Coldwell Banker Gosslee

Let's get right to it. The housing market in Northwest Louisiana is tougher than what we are seeing across the nation.

The National Association of Realtors just came out with its Existing Home Sales Report looking at March sales and I found it striking how much tighter our market was. But before you think it is all gloom and doom, as we go on in this blog, there are some potentially promising signs.

Looking at the below chart, we are down in numerous categories compared to the overall U.S.:

  • Sales
  • Inventory (number of homes on the market)
  • Month supply
  • Median days on market which shows how fast homes are selling. In fact, our homes are selling almost 100% faster than in the rest of the nation.

 

U.S.

(change over March '21)

Northwest LA

(change over March '21)

Median Price

$375,300/-4.6%

$193,345/-1%

Number of Sales

5.77 million/-7.1%
(annualized)

491/-8%

Inventory

950,000/-9.5%

688/-11%

Months Supply

2.0/2.1

1.4/1.8

Median Days on Market

17/18

9/43

 

On the flip side, it is important to notice that our affordability levels are a HUGE positive. Our median priced home (the middle of all sales) was a whopping $181,955 less than the national price. Also, while our prices have appreciated from about $158,000 in March of 2019 to today's $193,345, we are seeing the pace of price increases slow.

We ended 2021 up 8% for the year to an overall median price of $198,950. This was another anomaly as traditionally I call our market "Steady Eddie" since we don't normally see huge annual increases. So far this year, prices are flat over this time last year.

Also, while most of 2020, and all of 2021, saw sales greatly influenced by historically-low mortgage rates, the work-from-home phenomenon and other pandemic-fueled sales, we may – I say "may" because none of us has a crystal ball – slowly begin to see a more normalized housing market.

But this can only occur if – and only if – we start to see more homes come on the market. While this will likely not happen overnight, here is what could start to happen:

  • If mortgage rates do continue to creep up into the mid/high 4% and low 5% levels, that may pull some potential buyers out of the market or they would be forced to only consider lower priced homes. Remember our price gains have already made it harder for first-time buyers to get into homeownership.
  • Fewer buyers would create more balance in the supply vs. demand equation and limit the number the number of multiple bids.
  • Homes would potentially stay on the market longer with prices leveling off.
  • If prices stabilize, this might allow potential sellers to recognize we've reached the "top of the market" and those interested might act.
  • More homes would then come on the market allowing us to begin returning to a more traditional market.

But we are definitely not there yet. Our demand is still really strong and inventory levels really low.

Sales is a great reflection of demand. While we are down 2% in sales over last year, remember this is off a record pace last year. Consider that since March 2018, just four years ago, we are:

  • We are up 29% in total sales
  • We approximately doubled the sales figures in the mid-level ranges
  • The $400,000+ luxury market is up 311% in sales

Price Range

March 2022 Sales

March 2018 Sales

Total

490

379

$100,000 & less

81

103

$100,000-$200,000

176

166

$200,000-$300,000

149

76

$300,000-$400,000

47

23

$400,000-$500,000

23

7

$500,000+

14

            2       

 

I think the major reason for the year-over-year sales slowdown is a reflection of our inventory remaining ridiculously low. Last February was our lowest inventory level ever with only 667 homes on the market. Today we are at only 688. This equates to a major seller's market with a paltry 1.4 month supply, far below the 5-6 month range we need for a balanced market where neither buyer nor seller has a negotiation advantage.

This chart shows the lack of supply compared to five years ago. Notice how the month supply has also dropped dramatically, especially in the mid-level price points:

Price Range

March 2022 Available Homes/Month Supply

March 2018 Available Homes/Month Supply

Total

688/1.4

2,222/5.5

$100,000 & less

181/2.4

456/4.7

$100,000-$200,000

168/1.0

745/4.8

$200,000-$300,000

127/0.9

495/5.6

$300,000-$400,000

64/1.2

263/9.5

$400,000-$500,000

51/1.9

116/13.7

$500,000+

93/5.1

145/21

 

If you are looking for a positive sign of a more stabilized market, you'd look at our most expensive homes where the month supply, which had come down dramatically from the 20-month level prior to the pandemic, has leveled off in the 5-month range for a while.

The impact of the inventory challenge is really noticeable in the $300,000-$400,000 range where only 64 homes were available. This sector has been fueled by move up buyers who took advantage of their equity and historically-low mortgage rates to buy larger and more expensive homes. We are down in this price range 12% across the region, 17% in Caddo Parish and 10% in Bossier Parish.

Price Range

YoY Number of Home Sales NW LOUISIANA
(% change over March 2021

YoY Number of Home Sales in Bossier Parish (% change over March 2021

YoY Number of Home Sales in Caddo Parish (% change over March 2021

YoY Number of Home Sales in Desoto Parish (% change over March 2021

Total

1,252 (-2%)

466 (-7%)

744 (+1%)

42 (0%)

$100,000 & less

224 (+14%)

50 (+9%)

169 (+16%)

5 (0%)

$100,000-$200,000

425 (-14%)

128 (-23%)

282 (-8%)

15 (-29%)

$200,000-$300,000

372 (+8%)

165 (+2%)

198 (+14%)

     9 (+0%)

$300,000-$400,000

134 (-12%)

79 (-10%)

50 (-17%)

5 (0%)

$400,000-$500,000

56 (+14%)

30 (+58%)

23 (-18%)

3 (+100%)

$500,000-
$600,000

24 (+4%)

     8 (-38%)

12 (+20%)

4 (+400%)

$600,000+

17 (-11%)

6 (0%)

10 (-23%)

1 (+100%)

 

I am so proud of our agents. Coldwell Banker Gosslee has led the local real estate industry for 29-straight years. We really believe that full-time agents deserve full-time support. And today's market certainly demands full-time agents who have proper, non-stop training who can be in constant communications with their clients.

Our behind-the-scenes team are unsung heroes. They work closely with our agents to assist them in attracting buyers, marketing your home and handling back-end details, which allows our agents to attend training classes, network with others and work closely with you.

While none of us has been through a market quite like this, we have been in business since 1960 and have amassed great knowledge and experiences. Both buyers and sellers NEED that today.

I want to re-iterate what I wrote last month:

Our agents are doing an incredible job in explaining to their sellers and buyers what is happening in the housing market. It is a stressful time on both sides. Here is why:

  • Sellers need to identify where they want to move and ensure that their next potential home is available. Our agents are connecting them with agents in their next community to assist them.
  • Sellers then have to be prepared for the fast-pace of the sale. If they get multiple bids they will eventually have to choose who they want to sell to. Our agents handle the negotiations and help the seller understand the complexities of each offer.
  • Our agents also work with their seller to create "contingencies" that often state when the sale will become final predicated on when the seller can leave and move into their next home.
  • Buyers are stressed because they have to move very quickly. They don't have as many choices as in previous years. Their agent may have to have the buyer make a quick decision and offer.
  • Buyers are also facing rejection. They may not win a bidding war and many are frustrated that they have the down payment funds and want to take advantage of the low mortgage rates, but they can't buy the home they want.

To those who are considering selling your home, I would encourage you to have a conversation with one of our agents. They can help you understand market conditions, give you a look at what your home is worth, help you meet with an agent where you are considering moving to (if it is out of town), and answer any questions you have.

Of course, you should feel free to reach out to me at bgosslee@cbgosslee.com.

See you next month!

March
25

DREAMING AND TAKING ADVANTAGE OF THE MARKET
By Brad Gosslee, President, Coldwell Banker Gosslee

I'd like to start this month's blog by asking you to click on this link and watch this video from Coldwell Banker. While valuable, you don't even have to watch the last 26 seconds where our ad agency promoted features on the coldwellbanker.com web site.

The start of the video, which is the national TV commercial that is running throughout March Madness basketball and elsewhere, talks about how the increase in home prices is allowing so many homeowners to take advantage of their increased home equity and move on in the next phase of their lives.

I love the last line of the video. "Your dreams don't have to be just dreams."

We are seeing this play out here with so many of our clients.

Now let's take a deeper dive into how buyer demand and lack of available homes have driven home prices up.

Let's start with buyer demand. There were 388 home sales in Northwest Louisiana in February. This is stunning. Our 5-year average in February, a month where we are normally pretty slow, is 320 homes. And we are even higher than last February when pandemic-related sales grew our total to 365.

Drilling down a bit deeper, we are also seeing that Caddo Parish is leading in sales, up 9% versus last year, while Bossier Parish is down 8%. This is not because Bossier has suddenly become unpopular. Instead, it is a direct reflection that there are not enough homes on the market to meet the demand.

Price Range

YoY Number of Home Sales NW LOUISIANA
(% change over Feb. 2021

YoY Number of Home Sales in Bossier Parish (% change over Feb. 2021

YoY Number of Home Sales in Caddo Parish (% change over Feb. 2021

YoY Number of Home Sales in Desoto Parish (% change over Feb. 2021

Total

759 (+2%)

276 (-8%)

457 (+9%)

26 (+8%)

$100,000 & less

143 (+20%)

24 (-27%)

116 (+33%)

3 (0%)

$100,000-$200,000

246 (-16%)

68 (-33%)

169 (-5%)

9 (-31%)

$200,000-$300,000

223 (+18%)

109 (+22%)

108 (+14%)

     6 (+20%)

$300,000-$400,000

87 (-5%)

51 (-7%)

34 (+0%)

2 (-33%)

$400,000-$500,000

33 (+22%)

15 (+25%)

17 (+13%)

1 (+100%)

$500,000-
$600,000

15 (+7%)

     4 (-60%)

7 (+75%)

4 (+400%)

$600,000+

12 (+0%)

5 (+25%)

6 (-25%)

1 (+100%)

This next chart shows that the dramatic shift in sales is occurring in the more expensive price brackets. This is because so many have built up equity in their current home and they used the incredibly low mortgage rates to "move up." At the same time, there have been plenty of renters who saved for a down payment, who could afford a more expensive home because of those ultra-low mortgage rates:

Price Range

February 2022 Sales

February 2018 Sales

Total

388

334

$100,000 & less

62

95

$100,000-$200,000

122

133

$200,000-$300,000

119

70

$300,000-$400,000

50

21

$400,000-$500,000

20

8

$500,000+

15

      7       

We now move on to supply – what we call inventory. We are at an all-time low of only 667 homes on the market. This equates to a 1.3 month supply, another all-time low. A year ago, we were at what I then called a "drastically low" 1.8 months. It was 4.5 months just two years ago. There were 437 new listings that came on the market, but most of these were scooped up extremely quickly. In fact, homes stayed on the market just 16 days in February, six days faster than last February.

To put all of this in perspective, real estate professionals usually refer to 5-6 month supply as being a balanced market. Less than that, we have a seller's market. Above that, it's considered a buyer's market. We are in a major seller's market that creates multiple bids with the seller in the negotiating driver's seat.

This chart shows the lack of supply compared to five years ago. Notice how the month supply has also dropped dramatically, especially in the mid-level price points:

Price Range

February 2022 Available Homes/Month Supply

February 2018 Available Homes/Month Supply

Total

667/1.3

2,128/5.5

$100,000 & less

185/3.0

442/4.7

$100,000-$200,000

170/1.0

734/4.8

$200,000-$300,000

124/0.8

462/5.1

$300,000-$400,000

65/1.2

229/8.6

$400,000-$500,000

42/1.6

106/12.5

$500,000+ 

81/4.4

145/20.5

Thus, the rise in prices.

The median price – the middle of all 388 homes sold in February – was $205,000, while the average was $225,573, up 6% and 5% respectively. Looking at median prices as a guide, here is a striking note – if you bought your home in March of 2019, your home's value may have increased by $53,884.

This increase leads to greater home equity – the value of your home minus what you currently owe on your mortgage.

Greater equity is leading so many homeowners to live their dream!

Our agents are doing an incredible job in explaining to their sellers and buyers what is happening in the housing market. It is a stressful time on both sides. Here is why:

  • Sellers need to identify where they want to move and ensure that their next potential home is available. Our agents are connecting them with agents in their next community to assist them.
  • Sellers then have to be prepared for the fast-pace of the sale. If they get multiple bids, they will eventually have to choose who they want to sell to. Our agents handle the negotiations and help the seller understand the complexities of each offer.
  • Our agents also work with their seller to create "contingencies" that often state when the sale will become final predicated on when the seller can leave and move into their next home.
  • Buyers are stressed because they have to move very quickly. They don't have as many choices as in previous years. Their agent may have to have the buyer make a quick decision and offer.
  • Buyers are also facing rejection. They may not win a bidding war and many are frustrated that they have the down payment funds and want to take advantage of the low mortgage rates, but they can't buy the home they want.

I want to take a moment to salute our agents. They are working so hard and navigating the tightest real estate market we have ever seen. Their training and ability to work closely with our support staff is allowing them to rise to the top. They know what to do. They know how to do it. And because they have so much power behind them, they are able to focus on their client's needs exceptionally well.

If you are ready to dream, please reach out to one of our 150+ agents who can help. Or, feel free to reach out to me at bgosslee@cbgosslee.com.

 

 

March
22

February 2022 Market Overview
Shreveport/Bossier, LA – (Caddo, Bossier, Desoto Parishes only)

To view or download the full report click here.

February Summary:  Sales demand remains high.  Average price up.  Inventory at all-time record low.

Sales:  Strong demand continued in February, posting the highest sales activity we've seen since February 2007 (which was the peak of the market before the crash of 2008).  There were 388 sales this February versus 365 last year. To give this some context, the 5 year average for February is only 320.  Year to date, we are slightly ahead of last year (up +2%) which was a record at the time. These results differ though when you drill down on each parish. Sales in Caddo are up +9% versus last year while Bossier parish is currently down –8%.  Desoto parish is up +8% versus last year but that is really only 2 additional sales.  Bossier's recent slow down is similar to what Desoto experienced last year where there were not enough available listings we able to meet demand.  While new listings are coming on-line every day, we need the new listing rate to increase or we will begin to see a slow down in closings because would-be buyers won't be able to find what they are looking for.   Builders are trying to meet this demand with new construction but lack of labor and materials is an ongoing challenge.

Unit Sales YTD by price range vs. last year:

Inventory:  Listing inventory bottomed in May of last year at 774. Since then, it climbed back up to the low 900's where it hovered for the last few months of 2021. It has now dropped again to a record level of 667 which is officially an all-time low.  With 388 homes sold in February and only 667 currently on the market, the Monthly Supply (using the 12 month trailing average) of homes is now only 1.3 which down from 1.5 last month and officially an all-time low. This is incredibly low for the Shreveport-Bossier market.  Just 12 months ago, the monthly supply was 1.8, and two years ago it was 4.5. There were 437 new listings that came on the market in February in all price ranges but the majority were put under contract shortly after hitting the market.  There are currently 626 properties in pending sale status.  This is up from 618 last month.   

PricesWith the continued low inventory and strong sales demand, we continue to see prices rise.  The average price this February was $225,573 versus $201,626 last month and $214,150 last year.   Year to date, the average price is $214,089 versus 213,813 last year.  On a price per square foot basis, average prices so far this year are $107.87/ft versus $104.73/ft last year. 

February 2022 Comparative Market Statistics
Shreveport/Bossier, LA – (Caddo, Bossier, Desoto Parishes Only)
 
 
February 2022 Absorption Rates
Shreveport/Bossier, LA – (Caddo, Bossier, & Desoto Parishes Only)

The following figures are through the month of February 2022

Currently, there are 667 total homes for sale in Shreveport/Bossier.
Over the last 12 months, 502 homes have sold per month on average.
That's a 1.3 month supply of homes if no more homes come on the market.
Last month 437 homes came on the market.

Currently there are 185 homes priced below $100,000 for sale in Shreveport/Bossier.
Over the last 12 months, 74 homes have sold per month on average in this price range.
That's a 2.5 month supply of homes if no more homes come on the market.
Last month 71 homes came on the market in this price range.

Currently there are 170 homes priced between $100,000 and $199,999 for sale in Shreveport/Bossier.
Over the last 12 months, 177 homes have sold per month on average in this price range.
That's a 1.0 month supply of homes if no more homes come on the market.
Last month 140 homes came on the market in this price range.
 
Currently there are 124 homes priced between $200,000 and $299,999 for sale in Shreveport/Bossier.
Over the last 12 months, 149 homes have sold per month on average in this price range.
That's a 0.8 month supply of homes if no more homes come on the market.
Last month 121 homes came on the market in this price range.
 
Currently there are 65 homes priced between $300,000 and $399,999 for sale in Shreveport/Bossier.
Over the last 12 months, 57 homes have sold per month on average in this price range.
That's an 1.2 month supply of homes if no more homes come on the market.
Last month 42 homes came on the market in this price range.
 
Currently there are 42 homes priced between $400,000 and $499,999 for sale in Shreveport/Bossier.
Over the last 12 months, 26 homes have sold per month on average in this price range.
That's a 1.6 month supply of homes if no more homes come on the market.
Last month 31 homes came on the market in this price range.
 
Currently there are 81 homes priced above $500,000 for sale in Shreveport/Bossier.
Over the last 12 months, 18 homes have sold per month on average in this price range.
That's a 4.4 month supply of homes if no more homes come on the market.
Last month 24 homes came on the market in this price range.

 

Important Note: A 6 month supply is considered to be a balanced market.
Under 6 months is a seller's market.
Over 6 months is a buyer's market. 
Data Source: Northwest Louisiana Association of Realtors MLS, Inc 3/9/2022
Author: Brad Gosslee of Coldwell Banker Gosslee
Information believed to be accurate but not guaranteed.

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