While other sectors in the Capital Region are still reeling from the pandemic, residential home sales appear to be picking up after months of historic lows.
After the residential market posted a 30% drop in closed sales in May, sales have seemingly bounced back, posting a nearly 22% increase last month compared to June 2020, according to new data released by the Greater Baton Rouge Association of Realtors.
Along with closed sales, new listings and pending sales are also up, hinting at renewed confidence and “pent-up demand” in the local residential market by buyers.
While buyer activity continues to be robust, GBRAR notes that seller activity is a bit softer, with fewer homes listed for sale than a year ago. Months supply of homes has dropped nearly one-quarter to 3.9 months, marking the return of the Baton Rouge area to a seller’s market. Baton Rouge has been teetering between being a neutral or a buyer’s market for the past year and a half.
“Many housing experts believe sellers remain reluctant to list their homes due to continued concerns over COVID-19, which was beginning to see a resurgence in June,” GBRAR says. “Until sellers regain confidence, housing inventory will continue to be constrained during what is expected to be an active summer selling season.”