Investors purchasing homes damaged by the August flood helped drive up November sales in the Baton Rouge area, with the latest figures from the Greater Baton Rouge Association of Realtors showing sales surged 38.9% during the month to 893, up from 643 during November 2015.
Pending sales also were up in November, rising from 600 in November last year to 894 last month—a 49% increase.
The sale of flooded properties, however, also dragged down the average sale price last month. Homes sold for an average of $192,831 last month, a 7.7% decline from the $208,884 average price during November last year.
“Folks are pricing their home for its current condition,” reads the GBRAR report. “It is possible the drop in median sales price will be greater in months to come as more flood damaged inventory moves through the market. That trend is likely to have a short life span followed by many investment homes coming back on the market after repairs are completed.”