The coronavirus’s effect on the real estate market has gotten to this: If sales keep up at this explosive pace, there won’t be many homes left to buy.
Home sales in Acadiana last month set a record with 583 sold, according to data compiled by Bill Bacque with Market Scope Consulting, and July could be another high-water mark. With interest rates on home loans still low and a pent-up demand following a coronavirus slump earlier in the spring, the market could start running low on available properties.
The region now has a 3.6 month supply of houses, with five or six months being considered balanced. And more are coming: pending home sales last month were higher in June than they were in May.
Another factor in that concern: the number of new listings in Acadiana are down 10%, particularly outside of Lafayette Parish.
“There is one negative that we are experiencing in the local housing market: an increasing lack of adequate inventory, especially in certain price ranges,” Bacque said. “As available inventory continues to dwindle, at some point the lack of choices available may cause buyers who want to buy but don’t have to and return to the sidelines until selection returns to the marketplace.”
Sales have surged so much, Bacque noted, that there was 1.4 new listings available for every home sold, a mark that’s the lowest since 2011. New listings were up slightly in Lafayette Parish with 429 in June compared to 415 last year, but it was still down from the 432 last month and off last year’s pace by almost 4%.
Outside Lafayette Parish was worse: 202 last month, which was down from 282 last year and is almost 20% behind last year’s pace.
The surge in sales likely will continue through the summer. There were 694 pending sales recorded in June, topping the previous month’s 645 and well above last year’s 509. The bulk of them came in Lafayette Parish, with 460 reported after 416 were reported in May and 303 reported a year ago.
Of homes sold in Lafayette Parish through June, 799 — almost half — of the 1,731 sold were in the Youngsville area and southeastern part of the parish.
Outside of Lafayette Parish, only Vermilion Parish is ahead of last year’s pace of homes sold with 183 compared to 162 sold a year ago. Sales are behind in St. Martin (4%), Acadia (4%), Iberia (6%) and St. Landry (14%).
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