Acadiana is benefiting from a “crazy” residential real estate market in the middle of the year, although the number of active listings relative to demand is at its lowest level since the 1990s, according to a presentation by the real estate expert Bill Bacque.
Bacque, who runs Market Scope Consulting, produces monthly reports analyzing the local market. Bacque’s reports include annual and cumulative figures for Lafayette, Saint-Landry, Saint-Martin, Acadia, Iberia, Vermilion and Évangéline parishes.
Acadiana – and most of its individual parishes – have experienced an unprecedented level of success with its residential real estate market in the first six months of 2021. Home sales in the area are up 35% from the previous year. first half of 2020, and dollar sales volume is up 55%.
Within Lafayette Parish, sales are up 40% and dollar volume is up 56% over the year. Outside of Lafayette Parish, sales are up 25% and dollar volume is up 50% from the first part of 2020.
Homes between $ 150,000 and $ 299,999 are the hottest in Lafayette Parish, according to Bacque. Sales of these homes are up 44% over the year, from 1,062 in 2020 to 1,529 in 2021. These sales represent nearly two-thirds of all home sales in the first half of 2021 in the parish. .
Homes sold over $ 300,000 are up 77% over the year, from 301 to 533. Sales of homes under $ 150,000 were broadly the same as in the first half of 2020 at around 363 sales this year.
In the southern part of Lafayette Parish – south of Verot School Road and Ambassador Caffery Parkway in Youngsville – sales increased 37.6% from 2020 and dollar volume increased 47%. The area represents 45.2% of the parish’s sales in 2021 and 51.2% of the dollar volume.
The central part of the parish, near the Vermilion River, Johnston Street and south of Highway 90, saw sales increase 55.5% and dollar volume increase 87%. The area accounts for 23.7% of parish sales and 23.7% of dollar volume.
North Lafayette – just north of Highway 90 – saw sales jump 28% and dollar volume increase 49%. The area accounts for 19.7% of parish sales and 15.3% of dollar volume.
In the western part of Lafayette Parish, west of LA 167 and Highway 93, sales increased 54.2% and dollar volume increased 63.3%. The area accounted for 9.1% of parish sales and 7.6% of dollar volume.
The eastern part of the parish, around Broussard, saw its sales increase by 19.1% and the dollar volume increased by 40.9%. Square footage represents 2.2% of all parish sales and 2.2% of dollar volume.
Across Acadiana, the average sale price of $ 226,120 in the first half of 2021 is the highest in at least four decades, due to low supply and high demand. According to Bacque, the ratio of new listings to mid-year sales is at its lowest since 1998.
New listings increased from 2020, the sale rate greatly exceeded the supply entering the market.
The National Association of Realtors has called the national housing shortage dire and called for solutions from local and federal policymakers. The association has also released reports on the housing shortage, detailing the need to increase supply.
“There is a strong desire for homeownership across the country, but the lack of supply is preventing too many Americans from achieving this dream,” NAR chief economist Lawrence Yun said in a published article. on the association’s website. “It is clear from the findings of this report and the conditions we have seen in the market over the past few years that we will need to do something dramatic to close this gap. “
In his presentation, Bacque said that it is possible that the regional market can maintain its success without government intervention. Over the past 40 years, the region has experienced fairly drastic fluctuations in the ratio of new listings to sales.
From 1982 to 1989, the region had 2.9 new listings for every sale. But the ratio fell to its lowest point in the 90s, when it was 1: 1. This year the ratio is 1.2 new listings for every sale.