WOW! AVERAGE PRICES SAW IN INCREASE SINCE JULY FOR ASCENSION PARISH, WHILE EAST BATON ROUGE (AREAS 4,5 & 6) HAVE DROPPED IN AVERAGE PRICE.
Let’s start by looking a little closer at Ascension Parish. In August the average sales price rose to $244,112 from $237,979. The days on market were a little better as well. In July, the homes that sold were on the market for 51 days vs. the 44 days in August. Sellers were able to get 98.9% of their asking price. Compared to August of last year we did well stayed about the same in that category. Last year 85% of the homes listed sold and this year we saw only 64%.
In Baton Rouge (areas 4, 5 & 6) the August average sales price dropped to $279,320 compared to $297,060 in July. The days on market remained nearly the same and the list/sell ratio held steady at 94.27% When looking for a shift we look at the year before and this year was definitely down from last year in average sales price and list/sell ratio.
Is there a shift happening? We believe that we are definitely entering a buyer’s market. Remember, the homes that closed in August are the homes that most likely went under contract in July. That was the last big push before school started. We have already seen that not as many homes sold as last year and our current inventory is not getting the activity it should. We are hearing more and more agents chatting about their listings not getting showings much less offers.
What does this mean? In short, it means that REALTORS(R) 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.