The city of Baton Rouge, Louisiana has experienced housing sales reaching record high numbers along with low home inventories. Selling a home has been much easier to accomplish in the past 5 years than being on the buying side.
There has been a year of high numbers of homes being sold. The market was put in hyper-drive as a result of the August 2016 flood. There were greater than 11,000 house sales in the year 2017. This was such a strong number that the Baton Rouge area hasn’t experienced since the migration caused by Katrina in 2005.
But, during the same time, inventory of houses on the market for sale has gone down. It is an indication of a seller’s market because Baton Rouge has experienced lower than six months inventory since the year 2013. A record breaking low of 3 months inventory was reached December 2016. Gradually by the year end of 2017 it rose to 3.7 months of inventory.
The last two years were very unusual. The market was thrown off kilter because of the massive flood which overwhelmed the very hot housing market. Massive numbers of home owners whose houses were flooded sold their homes to purchase higher ground new houses. For a year and a half, this strongly threw the market off kilter.
By the end of 2017, the amount of activity started to slow down. This was an indication of a time for cooling of the market. This year housing inventory is expected to go up. The question is how long before it will not be a seller’s market. Although signs are showing that it’s going to be an improved year for buyers, a seller’s market will still be here.
Though some believe that 2018 will shift more in the direction for buyers to take the stage, housing inventory is so small, it is unlikely it will shift all the way into a buyer’s market.