A consistent growth is expected in the real estate market by the realtors in Louisiana, irrespective of the ambiguity regarding the lowered oil price impact. The Louisiana Real Estate Association’s members gathered recently to discuss the predictions for commercial as well as residential real estate markets the coming few years.
There are a number of reasons for the optimism of the realtors. This includes low-interest rates and housing stock as well as a booming economy which is generating greater demand. The current diversified economy has an enhanced ability to deal with the falling oil prices, said the members.
Real estate in Lafayette
Norman Morris, CEO, Louisiana Realtors Association is confident that improvements in the real estate market are expected to be seen throughout 2015, continuing from the previous year developments. He calls it a cyclical scheme; however, believes that the interest rates will remain at an extremely low level. The local market for real estate might also be impacted by another factor: the integrated development code put forth by Lafayette.
According to Morris, the market is specifically booming in Lafayette despite the dropping of the oil prices. It is believed that since 1980s, the economy in Lafayette has undergone the diversification. As there was a lot more dependence on oil, that was quite a big crisis.
According to Coldwell Banker, there was existing and new inventory for 3.72 months in Lafayette in 2014 which was up for sale. The inventory value figure stood at 3.93 months in 2013 and 5.16 months in 2012.
Susan Holiday from Realtor Association of Acadiana said that their inventory had been poor for around 2-year point. A scarcity of commercial property has also been witnesses, specifically in Louisiana’s metropolitan areas, revealed Beth Christina who works as a commercial broker at Stirling Properties.
Single family homes doing well
As far as the single-family homes are concerned, there is still quite a decent market out there, said Steven Herbert, CEO, Coldwell Pelican Banker Real Estate. New constructions did really well in the previous year. The same might be expected this year as well though it’s too early to predict. Herbert further added that the local economy may not feel the affect of the dropping oil prices till the latter half of 2015.
According to Herbert, if there is no rise in the oil prices, some amount of the inventory may get freed, and there could be more properties up for sale in the market.