Housing Market Update for SWLA
It’s no surprise that the Lake Charles housing market is unique from others. We’ve been hit by hurricanes, COVID-19, floods, and ice storms, and the housing market has taken one hard punch after another. We find ourselves at a strange crossroads between returning to normalcy and an uncertain future. But if Lake Charles is one thing, it’s optimistic, and local lenders have their ear to the ground to see the type of homebuying season we can expect this summer.
“We have a low housing inventory paired with a high demand in homes,” said Vice President and Lender Debra Lewis of First Federal Bank of LA. “This means it’s a very strong seller’s market, but the curve is starting to flatten out.” The hurricanes took out a chunk of available properties while keeping others off the market due to slow repairs and renovations. Finding the perfect dream home has turned into simply finding a home. “As more homes are repaired or built and families are finding their way back into their homes, there’s not so much of an intense demand as we saw last year,” continued Lewis. It’s also important to remember that as inventory grows, so will the number of buyers in the area.
If you’ve spent any time recently on real estate websites or apps, the price tag on the average home probably made your jaw drop. Prices skyrocketed nearly 20% through the third quarter compared to a year before, according to the Federal Housing Finance Agency. The median price of a home was $346,900 in 2021, up 16.9% from 2020, and the highest on record, according to the National Association of Realtors. In Southwest Louisiana, the average home price is closer to $220,000.
“It can be harder and harder for a young family to buy their first home, but local lenders are working twice as hard to help make it happen,” said Lewis. “When you have a good lender as well as a good real estate agent, they can help talk you off the ledge when you’re feeling house buying FOMO (fear of missing out). The last thing we want you to do is to buy a house you can’t afford yet.”
Local lenders can also match you with home buying assistance and responsible budgeting practices to close the gap between your first home and your finances. Even though there seems to be fewer homes available for sale, it doesn’t mean it’ll be like that in the long-term. Home prices are rising at a slower pace than last year, and being patient is one of the most important steps to buying a house.
“If you’re looking to sell, it’s important to get ahead of the selling process,” added Lewis. “A new fence, a renovated kitchen, or repaired windows are taking longer and longer due to massive supply shortages and labor.” Keep in mind that buyers tend to be more active during spring and summer months before school begins in the fall. Sellers have a strong advantage right now but as more newly constructed homes are built, the lightning-fast buying process may slow down due to more inventory.
An influx of repaired or new homes on the market can help our local housing market not feel so volatile in the long term, but builders facing supply chain problems simply can’t construct homes fast enough to keep up with local demand.
“All in all, the best thing you can do whether you’re buying or selling is to talk to the experts,” said Lewis. “Your loan officer can help create a plan that will get you where you want to be. You just have to be patient, know your finances, and stay away from panic-buying.”
To learn more, call Debra Lewis at (337) 421-1114, drop by the First Federal Bank Main Office at 1135 Lakeshore Drive in downtown Lake Charles, or visit www.ffbla.bank.