June home sales were down in the greater Baton Rouge area from the previous year, though greater buyer competition and the strength of the U.S. economy is helping some sales move quickly, the Greater Baton Rouge Association of Realtors says.
In other words, what is selling is selling quickly.
Still, 1,040 houses were sold in June, down 9.4% compared to the same month in 2017, according to the GBRAR’s latest commentary.
One reason for the slow down is the Fed’s decision to raise rates for the second time this year, the seventh time it has done so since late 2015. “Although the 30-year mortgage rate did not increase, buyers often react by locking in at the current rate ahead of assumed higher rates later,” GBRAR says. “When this happens, accelerated price increases are possible, causing further strain on affordability.”
Pending sales increased 4.8% to 1,082, and new listings were up 8.9% to 1,528 in June.
The median sales price of homes, meanwhile, rose 1% to $201,818. But there is some good news for home buyers as the number of houses for sale increased by 21.2%. The number of days on market stayed the same at 58.
Year-over-year home sales were also down in East Baton Rouge Parish, falling 10.2% to 563. Sales were down 0.5% in Livingston Parish while Ascension also fell, dropping 16.7% to 180 homes sold.