After the nine-parish Baton Rouge region saw a 10.1% drop in monthly year-over house sales in October, Kyle Petersen with Keller Williams Realty-First Choice predicts sales will remain slow through the end of this year before rallying in the first quarter of 2019.
The Baton Rouge metro area saw 786 houses were sold in October, according to figures released by the Greater Baton Rouge Association of Realtors. New listings rose 8.2% in the month, but pending sales declined 7.5% and average days on the market increased 17.9%, to 66 days.
Average sales price in the region fell 2.6%, to $221,336, as available inventory continued to rise, up 16% to 4,334 houses on the market.
The Baton Rouge market is shifting towards a buyer’s market, Petersen says.
Despite the sales drop, Realtor.com predicted last week that Baton Rouge sales would increase 2% next year and prices would increase 1%, projections Petersen says are safe. Newly constructed homes will help drive the average price of homes up, he adds.
“The last nine years we’ve had an inventory shortage,” Petersen says. “A lot of construction and neighborhoods after the flood got greenlit and those houses are hitting the market now. …New construction seems to be winning the day because there’s so much of it.”
Year-to-date sales in the Capital Region are down 4.9% to 9,110, compared to the first 10 months last year.
The Capital Region’s three largest parishes saw mixed sales in October. East Baton Rouge and Ascension parishes saw sales dip by 19.2% and 1.9%, respectively, while sales in Livingston Parish were up 16.7%.