Despite the recession, the housing market in Acadiana is rebounding as Louisiana continues to loosen coronavirus restrictions.
Last year was a record year for home sales and the Realtor Association of Acadiana says even amid COVID, our area is on track for another record year.
Right now, interest rates are low so that means people have more purchase power when it comes to finding the home of their dreams. As for inventory, we're told there is not enough supply in our market for the demand, which in some cases means multiple offers are coming in on listings.
When the stay-at-home order was issued in March, the real estate market took a hit. Not as many people were wiling to take in-person tours and sellers were concerned about listing amid the pandemic. With restrictions loosening, people are ready to get back in the market.
"We had a bunch of pent up demand and what the market is showing us is that those buyers are still here. They didn't go anywhere, they just postponed everything," said Jim Keaty, president of the Realtor Association of Acadiana and owner of Keaty Real Estate.
Keaty said the market is down roughly two percent compared to last year which was a record year. Last year homes were on the market nearly 100 days compared to 93 days this year.
"We absolutely are seeing a recovery in the housing market as far as showings, pendings, soon to be closings in the next 30 to 45 days," Keaty said.
In May, 677 homes were pending, but closed sales were down nearly 28% compared to this time last year.
"We did lose a few contracts and we're going to lose some of the pendings that we have under contract now, but the government has done a really good job to protect our community and the individual so they can buy houses," Keaty said. "Federally backed loans are way up right now."
Lafayette resident Geralyn Siefker recently sold her home in four days.
She says her agent presented her with data, was upfront and said homes in her price-point were still selling.
"I'm glad we have an awesome group of people in our community that are really trying to help Lafayette navigate through this economic hardship," Siefker said.
As experts keep a close eye on the economy, they realize it's important to see how oil prices will impact the energy sector.
"But for right now, interest rates are low, demand is high in most price ranges," Keaty said.
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