Real Estate Outlook Strong in Acadiana, Louisiana
Mary Jane Bauer, CEO of the Realtor Association of Acadiana, La., writes a bi-monthly column in The Daily Advertiser. Today, she tackles the topic of whether the local real estate market has gone bust.
That’s the rumor floating around. But is it true or false?
Definitely false. First, there’s a lot of debate about whether a housing bubble truly exists.
Low mortgage rates and an increasing population have brought on a high demand for real estate nationwide in the last 10 years.
So what is happening now to the market?
According to press, the demand for real estate has slowed significantly. It has slowed down in areas such as California, Florida, Las Vegas and the East Coast, but 2006 was still the third-best year on record according to the National Association of Realtors.
The “third-best year” isn’t the definition of a bubble bursting. This was after five consecutive record years for home sales.
But what about Acadiana home sales and prices? Where do we stand in the national statistics? According to David Lereah, chief economist for the National Association of Realtors, says the Gulf Coast housing market is predicted to remain robust and vital for the next 5-7 years.
Of course, that prediction is partially because of the significant amounts of money that will be used to help rebuild the region after hurricanes Rita and Katrina and because of the booming economy and continued low Louisiana mortgage rates.
The local Multiple Listing Service, owned by the Realtor Association of Acadiana, has the numbers to show that the housing market is strong in both Lafayette and Acadiana.
Comparisons to the New Orleans housing market are difficult. It has not slowed down; on the contrary, it has increased, and 2006 was an even better year than 2005, when there was a rush for housing after the devastating hurricanes.
The average home price reported in the multiple listing service (covering Acadia, Iberia, Lafayette, St. Landry and St. Mary parishes) was $179,255 for 2006, compared to $169,617 in 2005. In 2006, 3,611 homes were sold, compared to 3,408 in 2005.
The average days on market in 2006 was 69, compared to 75 in 2005. If you look at Lafayette Parish alone, the numbers were a little different, with the average home price in 2006 at $198,288, total homes sold at 2,637 and days on market at an average of 63. In comparison, the average price in 2005 was $183,483 with 2,535 homes sold and days on market at 69.
Contrary to what you hear on the national news about real estate bubbles and a sluggish market, Acadiana’s housing market is strong and does not show signs of slowing down significantly anytime soon. It may level out some, but it is predicted to remain vibrant and healthy.
In short, expect home loan demand to be strong in this region in 2007.
SOURCE: The Daily Advertiser