May 2022 Housing Market Update

 

We are in full swing into the Spring real estate season and it's a very interesting time! There's so much going on in the world right now and real estate is right there at the forefront of the conversation because of rising interest rates, rising home prices, and a historically low level of inventory across the nation. There are still A LOT of people who are still looking to purchase a home and reading some of the national reports is interesting, to say the least, because of the outlook of interest rates and the demand for the market. Every month we take a LOCAL market perspective to see how things are going specifically for the Greater Baton Rouge Metropolitan area which is our focus so we'll stick to that and get right into things for this month's market report!


Number of Homes Available for Sale Comparision     

The number of homes available for sale has shown about a 10% increase over last month which is a good sign for buyers and right in line with my previous prediction that more homes will be put on the market from sellers as we get closer to the spring selling season. The stats and data from our local market show that this is what normally happens at this time of the year. With the interest rates for home loans increasing at a way faster rate than expected, the number of buyers who are becoming frustrated with the home buying process and have put a pause on their home search may be increaing. This is giving buyers who are extremely dedicated to the goal more options on the open home market at this time than over the last two months or so.
 

Months Supply of Homes for Sale

 

In February,  we mentioned that the market dropped below 1 month's worth of housing inventory for the first time on record. We may soon be heading towards a more balanced market as there has been a slight uptick in the number of homes available which is curbing the inventory's supply rate. We're a very long way away from getting to a more balanced market in the 3.5 - 4.5 months range for the month's supply but seeing this number increase is a good thing for buyers in the market.
 

Number of Closed Sales Per Month

I mentioned in last month's market report about a number of new agents getting into the real estate field. I also wanted to give a bit of perspective on how the market is from a REALTOR® perspective as most agents will receive compensation when a transaction actually closes. I wanted to give an idea of when the market has most of the transactions and activities going on from a 'Closed Sales' standpoint. As you can see from the chart, historically activity drops around October and then really cranks back up around March.

SPRING 2022 BONUS CONTENT:

I wanted to give you a bit of extra love during the spring season and so I made this video highlighting what I feel are the 3 biggest lies that you'll hear about the real estate industry this year! You can check out this quick video by clicking HERE!

I had a call from an investor who is looking to pull their money from the stock market and dedicate it to real estate as the stock market is forecasted to take a dive over the next two years. There are many that have this mindset so we may see more people changing the investment vehicle that they put their money into which could cause another strain on the real estate market as investors put profits into finding rental options as the stock market balances out.


As always, I want to make you aware that I've created a special website section where you can view interactive charts of historical data for the Greater Baton Rouge real estate market! I'm continuously striving to raise the bar for REALTORS® by providing quality communication, and great customer service, combined with valuable information, data, and statistics for anyone who needs it! The charts and graphs in our Market Data Center are always live and updated automatically monthly. You can see the real stats for what's going on in the Greater Baton Rouge real estate market and not just take someone's word for it! You can check out the data and see what's going on in your area by clicking the button below!

If you would like to get in touch with me please feel free to text me (225) 330-7059 or you can schedule an initial consultation call HERE!

Please wear your mask and stay safe,
Rinaldi Jacobs Jr., e-PRO®, PSA
REALTOR® & Marketing eXpert
eXp Realty, LLC
2900 Westfork Dr, Ste 401
Baton Rouge, LA 70827
Office: 225-412-9982 ext 151
Direct: 225-330-7059
Rinaldi@225avenues.com
Licensed in Louisiana