The Lafayette, Louisiana real estate market has come a long way in a short period of time. After dropping to recent lows in 2011, the market has rebounded and there are encouraging trends that should continue into the future. The number of homes sold, home prices and pending sales have all crept higher. Unemployment and foreclosures have stabilized and are on their way down. Lafayette also currently boasts a growing IT community that is helping push the economy forward. With strong current and future job growth rates, this surge is expected to continue moving forward. There are solid indicators suggesting that the Lafayette real estate market is strong and only getting stronger.
According to Realtor.com, the average sales price for the Lafayette real estate market is $215,992. This number is higher than the statewide average for Louisiana ($191,806), but lower than the national figure ($305,067). The average home price in Lafayette is currently 80 percent higher than the sales price. That said, the average home price in the Lafayette housing market is $390,642. This is an indication that home values have shot up in recent years. At the very least, the market is more desirable. Lafayette may not be the first city that comes to mind when you think of Louisiana, but it is the fourth largest in the state. With a below average median age, this is an area that is growing in popularity. It is only a matter of time before the Lafayette housing market exceeds expectations.
The Lafayette real estate market was able to withstand any effects of the mortgage collapse. The only period of any significant decline was in the middle of 2011. Since then, average list prices for the market have gone up more than 27 percent. List prices eventually push home values higher. This increase over the past four years has shown buyers and homeowners that the market is growing. This growth in home value appreciation has made the market desirable and is one of the main reasons for the current surge.
Back in 2013, Area Development magazine named the Lafayette real estate market the best location in the United States for economic and business growth. Their polling was based on a study of over 380 cities across the country. This acknowledgment reflects recent job growth numbers. The current job growth figure for Lafayette is 1.68 percent, which greatly outpaces the national average of 1.18 percent. What may be more promising for the area is in the future growth number. The market holds a 40 percent future growth number compared to the national number of 36 percent. This growth is one of the reasons that current unemployment is well below the statewide average. The most recent Lafayette unemployment figure is 5.4 percent, with the Louisiana average over 6.3 percent. A strong and growing economy is one of the most important factors for many new homebuyers. With a strong economy firmly in place, this can be used as the catalyst to continue to push the market forward.
The current median household income for Lafayette is $51,809. This number is below the Louisiana average ($45,594), but slightly above the national average ($52,961). The average cost of living for Lafayette is $53,000, which is a modest 4 percent higher than the rest of the state. The average net worth in Lafayette is also higher than the statewide average. These figures indicate that there is financial strength behind many of the residences in the area. This financial strength allows home prices to comfortably rise. It is also important to note that the 20-29 year old segment is the most highly populated age group in the region. This age group is primed to purchase real estate and can further add to the local buying pool. The Lafayette real estate investing community should take not of this, as Millennials are starting to increase their purchasing power.
According to RealtyTrac, thee are about 270 homes in the Lafayette real estate market in some state of foreclosure. That means that Lafayette real estate investing will have the opportunity to take off. In fact, foreclosures have increased dramatically in the last year. Auction foreclosures increased the most, jumping 200 percent in just 12 months. Auctions now represent 40.4 percent of the distressed Lafayette housing market. Another 38.5 percent are in pre-foreclosure, which means the owners are simply at risk of losing their home. There are currently 383 resale and new homes in Lafayette on Trulia, including 5 open houses
Looking at data alone, it is no surprise why the Lafayette real estate market is on the rise. Strong buyers who are confident in their employment and like the way the market is headed are leading the current charge. This charge is supported by a strong economy that is continuing to grow and looks solid moving forward. The lack of foreclosures is not pulling the market down, and sales prices are on the rise. Equity and appreciation are up over the last few years and the Lafayette real estate market is as healthy as ever.
Lafayette Real Estate Market Summary:
- Current Median Home Price: $390,642
- Current Median Sales Price: $215,992
- Unemployment Rate: 5.4%
- Population: 124,276
- Median Household Income: $51,809