The Baton Rouge area residential real estate market remains in flux, as home sales rose slightly in April after declines in previous months, but one indicator that steadily continues its one-way trajectory is the rising inventory of houses on the market.
Greater Baton Rouge home sales in April were up 2.8% from the same month last year, according to the most recent Greater Baton Rouge Association of Realtors report. The slight uptick, however, is out of step with previous months, like January and March, which saw home sales decline 10%. Overall year-to-date sales in 2019 are down 2%.
Housing inventory, meanwhile, continues to climb. The number of homes on the market rose 7% last month and months supply of inventory was up 9% at 4.8 months. Average days on the market also rose a whopping 22% to 78 days in April.
The expanding inventory, after years of a supply shortage, speaks to the ongoing shift from a seller’s to buyer’s market in Baton Rouge. Experts say a market favors buyers when inventory hits six months supply or more, and Baton Rouge is creeping closer each month.
Prices have not yet reacted to the rising supply, as the median sales price of homes in the area remained relatively flat in April at $200,000, up just 0.5%. Despite a strong economy and record-low unemployment rates, affordability remains a major challenge for home buyers locally and nationwide.
“In order for sales to increase on a grand scale, buyers will need more spending power, or sellers will need to reduce prices to land where buyers are more active,” reads the GBRAR report. “Neither situation is likely to occur in 2019, yet inventory is straining to keep pace in the most competitive price ranges.”
With the slight uptick in April, the association suggests homebuyers are beginning to “return in force this spring,” especially in desirable areas with well-priced homes.
