Baton Rouge homes on average appreciated 8.9% in the first quarter of this year compared to last year and 25% over three years, according to the National Association of Realtors.
The national averages were 15.2% and 44.5%, respectively, based on data from the first quarter of this year.
The association’s housing-affordability index, which factors in family incomes, mortgage rates and the sales price for existing single-family homes, fell to 98.5 in June, the lowest level since 1989 when the index stood at 98.3, the Wall Street Journal reports.
That means it was more expensive to buy a U.S. home in June than it has been for any month in more than three decades, as record-high home prices collided with a surge in mortgage rates.
Existing-home sales have declined for five straight months. During that period, interest rates shot up while home prices steadily climbed, leading to the sharpest erosion of affordability for the U.S. housing market in years and pricing more buyers out of the market. Even with fewer transactions, prices continue to rise from a year ago because the number of homes for sale around the U.S. remains below historical levels.