In this week’s Moving Acadiana Forward, we’re taking a look at how the coronavirus has affected the local housing market.
“Naturally people are pushing pause due to COVID-19, and it’s understandable. But right now people are looking at their choices, reviewing their options, and ultimately making a decision to buy, and the market is starting to show us some of those indicators,” says Robbie Breaux, a local realtor.
Breaux says there are two figures to look at when trying to get a gauge on the housing market.
“Number one is the new home sales coming onto the market or listing signs that are showing up in the yard. That’s down 10%. Second is the homes that are coming off the market or pending sales, when you get a buyer and a seller and have a meeting of the minds. Surprisingly that’s up almost 37%.”
At the time of the interview, we were waiting for final May numbers to come out, but those statistics are a good way to know what’s going to happen in the real estate market 60-90 days out.
Breaux says, “Right now what we are jumping in with these pending sales coming up, it’s more than likely that we will see an increase in those sales coming in July August and September. May versus May and 2019 in 2020, May was our best month by far last year. Naturally, we are competing against the best month in the middle of a quarantine, so we’re going to see a dip in my numbers but the thing to focus on is not the sales but it’s to look forward in the pending sales with homes coming off the market. Things are looking good.”
He says when you have inventory going down and homes coming off the market going up, what happens is you can see a shortage in supply. Moving forward that could mean pent up demand for homes in March and April.
One more piece of advice Breaux offers to those looking to move in about 6 to 7 years, He says it’s a great time to buy, interest rates are down and there’s still inventory out there.