Now, there is a lot to get into and I am super excited to report that 2018 was the best year in real estate for Lafayette Parish Ever! And here is why.
We sold more homes in 2018 in the history of Lafayette parish. The MLS reported in 2018 a 5% increase with 3,376 sales making 2018 the best year on record for Lafayette parish and did you know that the economic impact on each sale is approximately $51,000? This brought over 170 million dollars to our local economy.
When it comes to Volume we had an 8% increase year over year. Equaling over 750 Million in sales. Our average sale price for Lafayette actually increased to $223,475. That is a 3% increase Year over Year. Which explains why we had an 8% increase in Volume vs the 5% increase in sales because the average sales price increased by 3%.
Y’all with me?
When we look at our pendings we’ll notice a 10% increase year over year. Pending's are a very good indicator of what is to come in the next 60-90 days. We had a very strong November and a decent December, so we are predicting more closings in the 1st quarter of 2019 compared to Last year.
So what about our Actives?
The real estate industry is all about Supply and Demand and actives are an indication of our Supply which in 2018 the MLS reported a 16% increase year over year. Meaning we have 16% more supply however the demand has also gone up a bit because we have reported a 3% increase in price. More Actives equals more Sellers and that equals more buyers. We are currently in a very healthy market.
So speaking of Demand, one way we can get a pulse on demand, and the number of buyers is to look at the foot traffic. This data comes from the Centralized Showing Service, a system that realtors use to set up showings on properties. We compile the number of showing request for each month and this is an indicator of foot traffic and demand.
In 2018 we reported 15% more showings. These numbers are telling a story and the story is that there are more buyers, more pending's, and more sales. But there are also more listings, so each buyer has more to look at and this would help explain the 15% increase in showings.
Take a look at the 4th quarter we had an unusually high amount of foot traffic during the holidays. Could this mean a strong 1st quarter? The data certainly is pointing into that direction.
Now, we always want to keep an eye on what is going on with interest rates and where they are going. The Big news here is that instead of increasing as expected in the 4th quarter of 2018, interest rates actually decreased. Fears about a slowdown in global economic growth, stock market volatility and the government shutdown have stoked economic uncertainty, decreasing mortgage interest rates.
However, As you can see Freddie Mac, Fannie Mae, The Mortgage Broker Association, and The National Association of Realtors expect the Interest rates to increase in 2019.
So if you are in the market to buy right now, you have lucked out, and I would encourage anyone to take advantage of this opportunity as soon as possible.
And if you want to get the best insurance rate for your home with professional service in Lafayette, you need to call Levi Kastner at Thimmesch Kastner Insurance and he can set you up to capitalize on this low-interest rate now. It will save you thousands in the long run.
And if you are in doubt about our local economy, you can simply turn to the expert Dr. Loren Scott.
In his Economic outlook report, last quarter he mentioned “the hammering hasn’t stopped for Lafayette, but hope lies ahead” He is projecting the Lafayette economy to turn the corner this year. Adding 1,400 jobs in 2019 and then move into a stronger 2020 adding 4,900 jobs for a healthy 2.4% growth rate. I am sure we are all looking forward to seeing this happen. We have been seeing a lot of new construction in Lafayette, and I want to talk about New Construction vs Existing sales. We actually saw a 3% decrease in new construction sales in 2018. However, we had a 3% increase in volume. So how can you have a decrease in the number of sales but an increase in volume?
Well, we actually saw a 3% increase in the average price of new construction homes sold in Lafayette. Where we had a record-breaking year for existing home sales with a 7% increase in sales with a 6% increase in Average Sale price equaling a 13% increase in dollar volume sold.These are all great things for our Real Estate Industry, and for Lafayette in general. We hope to continue to see our communities grow.
For a deeper dive into the status of our market, you can always visit LAFAYETTE MARKET REPORTS.
This has been your 2018 Lafayette Market Update, Brought to you by Thimmesch Kastner Insurance.