WOW! AVERAGE PRICES SAW IN INCREASE SINCE AUGUST FOR ASCENSION PARISH, WHILE EAST BATON ROUGE (AREAS 4,5 & 6) HAVE DROPPED SLIGHTLY IN AVERAGE PRICE.
ASCENSION PARISH Let’s start by looking a little closer at Ascension Parish. In September the average sales price rose to $261,797 from $244,112. The days on market rose as well. In August, the homes that sold were on the market for 44 days vs. the 60 days in September. Sellers were still able to get 98.9% of their asking price.
Now that we have finished the 3rd Quarter, let’s take a look to see where we stand in comparison to last year at this time. We have basically sold the same amount as last year this time with prices jumping from an average of $234,537 to $249,346. Sellers were still getting 98% of their asking price and the days on market were comparable.
BATON ROUGE In Baton Rouge (areas 4, 5 & 6) the September average sales price dropped slightly to $277,111 compared to $279,320 in August. The days on market increased by 5 days to 60 and the list/sell ratio rose to 97.33%
The YTD numbers from 2017 to 2018: In 2018 average sales price was $276,800 which was up from $260,386 in 2017. The average sales price rose but the days on market also increased from 47 days to 59 days. Sellers also saw a reduction in the sale price to list price ratio. 96.29% is what they were able to negotiate.
Welcome to the Buyer’s Market! Even though the numbers from Quarters1-3 last year compared to this year don’t glaringly show this, we have definitely entered a buyer’s market. Affordability has become a problem in Ascension. It certainly isn’t as bad a places like New Orleans or big cities like Denver but there is definitely an affordability issue happening. We wonder if this new buyer’s market will turn that around.
What does this mean? In short, it means that REALTORS® need to set expectations with their sellers. In a buyer’s market, there is a higher inventory, this means that buyers have more to choose from. The sellers are not driving the pricing bus any longer, the buyers are in the driver’s seat now. Sellers will be expected to negotiate a little more than they have and also give up more for the buyer’s closings costs than they have in the past. Sellers will also see their homes sit on the market longer than they have in a while.