While you may not know it from our recent temperatures, Spring is right around the corner. As we head into an historically busy time of year for home sales, many of my clients have asked about current market conditions and what’s in store for 2018.
Last week I read with interest The Advocate’s article on 2017 home sales in the greater Baton Rouge area. Yesterday The Business Report shared Corelogic’s report on home values in the Baton Rouge area. And while most of this is good news, those of us who live in and around the LSU area know that this part of town is a little bit different. Near LSU, home prices are the highest in the metro area, land is scarce, and we weren’t as directly impacted by the August 2016 flood as other parts of Baton Rouge. So I decided to dig a little deeper and share with you what’s going on in my neighborhood.
Here’s our chart from last year updated with this years’ numbers. After a significant rise in 2016, average home prices are holding steady. In light of the market upheaval we experienced after the flood, I’d say that’s pretty good news.
What I think is important to keep an eye on this year is “supply” and “days on market.” As of this morning there are 366 detached single family homes available in the areas between LSU and Country Club of Louisiana. Last year 1,340 homes were sold in this area. So, that means that there is currently a 3.3 month supply of homes available. For home sellers this is very good news. And take a look at what’s happened to days on market.
Predicting what’s going to happen to home values is a pretty risky business, especially in this part of Baton Rouge where you have a lot of variety in the types of homes available, their age, and condition. But when you have an asset that’s in short supply in an economy that’s strong, I think it’s reasonable to believe that home values should rise.
Real estate is local. Your agent should be, too. If you’re thinking about buying or selling a home in areas near LSU give me a call. The number is (225) 772-8709 or email me at [email protected].