Surge Expected to Continue; Can Supply Keep Up with Demand?
Driven by growth of the local economy and historically-low interest rates, the Baton Rouge real estate market is experiencing a surge in demand for properties — both existing properties and new builds.
The standard mortgage rate of 3.45% has remained more or less constant for the past three decades, reaching an all-time low average national rate of 2.73%. (when was this?)
Residential property sales were 14.4% higher in 2020 compared to 2019 and that year-over-year percentage is rising even higher in 2020/21, despite ongoing pandemic conditions and financial impacts..
During a seven-month surge, from June to December of last year, home sales increased by a whopping 34.5% (YOY). In particular, and as just one example, East Baton Rouge Parish sales increased by 12.6%.
With home buyers outpacing available inventory for a second consecutive year, experts foresee a supply issue affecting the Baton Rouge real estate market for the foreseeable future. Without question, this is a sellers market, and sellers can expect multiple, competitive bid scenarios — possibly even selling on the day a property is listed.
A real estate expert, Kevin Jones, stated. “Sellers are winning right now. If you’re looking to sell your home, I mean, they’re going like real fast, within hours,” Jones believes that one of the major reasons people are holding their properties back is the current pandemic situation. He added, “people are still leery about COVID. They don’t want people in and out of their homes.”
“People are offering above asking. And right now, if you’re looking to sell, I would say, get your house in the market ASAP,” Jones confirmed.
According to the National Association of Realtors, 5.5 million home sales were recorded in 2020 nationwide, resulting in the best year for Baton Rouge real estate since 2006. Lawrence Yun, chief economist for the National Association of Realtors, reported that these year looks even more promising, speculating a 20% increase in new home sales and a 9% increase in existing home sales. Yun further hinted at a 3% hike in home prices on a national level.
As one of Baton Rouge’s most established realty companies and new home builders, Amelia Fine Homes is helping an increasing number of buyers and sellers navigate the local market. From buying or selling upscale, state-of-the-art or historical homes, to new residential builds and custom-built ultra-luxury homes, Amelia Fine Homes has the knowledge, expertise and client-focused team to deliver on your dream home.
Amelia Fine Homes has been a leader in Baton Rouge and Southern Louisiana real estate for 30 years, taking pride in their ever-expanding team of expert builders, contractors, and real estate specialists who, together, and changing the residential and commercial property landscape in the region.
Amelia Fine Homes is well known in Baton Rouge for providing a variety of real estate services, including new home construction and remodeling, providing value-added development services encompassing everything from planning to coordination to financial advice and project management.
Whether you are looking for a new home construction project or wish to remodel your home to increase the property’s value, Amelia Fine Homes can do complete justice to both. With over 30 years of experience in residential and commercial real estate construction, Amelia Fine Homes has the expertise to turn blueprints into architectural masterpieces.
In addition to this, if you wish to gain your fair share of wealth from Baton Rouge’s booming real estate market, get your house remodeled before you put it up for sale. Amelia Fine Home provides outstanding remodeling services that are bound to increase your property’s value. They have a client-centric approach towards each remodeling project, where they transform the client’s vision into reality while incorporating their skills and mastery throughout the process. They can also make adjustments according to your budget and timelines.
Get in touch with the experts at Amelia Fine Homes on their website and take full advantage of the favorable and dynamic real estate market available in Baton Rouge and Southern Louisiana.