After the Baton Rouge area saw a nearly 20% spike in closed sales during January, that momentum seemingly disappeared as the impacts and fears of COVID-19 grew.
Last month, closed sales dropped nearly 3% compared with February 2019, although pending sales increased some 6%, according to the Greater Baton Rouge Association of Realtors.
New home listings dropped just shy of 5% to 1,215, while months supply of inventory was down more than 10% to 4.4 months, which GBRAR says indicates demand increased relative to supply.
Days on the market also increased to 86, a nearly 12% increase from last year. The median home price in the area rose more than 5% to $204,965, up from the $195,000 median from February 2019.
“As we progressed through February, the actual and expected impacts of COVID-19 continued to grow, with concerns of economic impact reaching the stock market in the last week of the month,” reads a statement from the GBRAR. “As the stock market declined, so did mortgage rates, offering a bad news-good news situation. While short-term declines in the stock market can sting, borrowers who lock in today’s low rates will benefit significantly in the long term.”
As reported by Daily Report, residential transactions have slowed to a trickle this week as thousands adhere to Gov. John Bel Edwards’ shelter-in-place order, which went into effect Monday evening.