Going into 2020, the single-family residential market was relatively stable. While the pandemic initially froze the market for a few months as people complied with stay-at-home orders to try and slow the spread of the coronavirus, the residential market bounced back with a vengeance during the second half of the year.
While sales volume has steadily risen throughout Greater Baton Rouge since 2015, the region has seen a large spike in dollar volume of sales over the past year. The region saw $3.13 billion worth of sales last year, a significant increase from the nearly $2.6 billion in 2019, according to the TRENDS seminar sponsored by the Greater Baton Rouge Association of Realtors.
New home sales also increased quickly last year. While the dollar volume for new home sales increased an average of 5% from 2015 to 2019, it increased nearly 25% from 2019 to 2020. New home sales accounted for about 22.76% of the total sales volume in 2020.
National experts credit the residential market surge across the country to record low interest rates. Local experts, however, say there may be other factors at play as well, such as smaller average households. Agents told the TRENDS committee that “well-priced houses in good locations” are getting multiple offers, some of which are above the list price. While it’s unclear how long this level of demand will last, local experts don’t expect inventory levels to rise until the price of lumber falls and availability of lots rises. They also say to keep an eye on the oil and gas industry, which strongly influences the Baton Rouge economy.
Read the full story about the residential real estate market from the latest edition of Business Report.