The Shreveport real estate market continued to advance in the right direction in 2016. Both home prices and appreciation rates experienced improvements during the first-half of the year, as prices remain on an upward climb. While lower than the national average, gains in the last three years have extended the trend of positive price growth since the recession, and the trend is expected to continue for the Shreveport real estate market.
Home affordability remained the hallmark of the Shreveport real estate market in the first-half of the year. The area was among the most affordable housing markets in the country. On the flip side, however, it was a step back for the local economy and new housing construction. A lagging economy, including underwhelming performances in job-growth and unemployment, combined with a decline in new housing construction continued to hinder prospective growth during the first six-months of the year. Further improvements and continued growth should greatly benefit the Shreveport real estate market moving forward.
Shreveport, LA Real Estate Market Statistics:
Home appreciation continued to work in favor for Shreveport real estate in 2016. One-year and three-year appreciation rates were 6.7 percent and 6.9 percent during the second quarter, compared to the national average of 4.9 percent and 17.8 percent. Despite lower gains than the rest of the country, appreciation rates for the Shreveport real estate market have achieved positive growth in the last three years, which bodes well for investors and homeowners. For those considering Shreveport real estate investments, the following spotlights appreciation gains from previous years:
- Homes purchased in the Shreveport, LA housing market one year ago have appreciated, on average, by $13,341. The national average was $14,963 over the same period.
- Homes purchased in the Shreveport, LA housing market three years ago have appreciated, on average, by $19,402. The national average was $46,878 over the same period.
- Homes purchased in the Shreveport, LA housing market five years ago have appreciated, on average, by $24,314. The national average was $82,353 over the same period.
- Homes purchased in the Shreveport, LA housing market seven years ago have appreciated, on average, by $40,735. The national average was $77,054 over the same period.
- Homes purchased in the Shreveport, LA housing market nine years ago have appreciated, on average, by $50,667. The national average was $31,126 over the same period.
Another positive for the Shreveport real estate market in 2016 was total home equity. Homes purchased one year ago have appreciated by $13,341, compared the national average experienced gains of $14,963. Price appreciation and principle payments in the last three years have boosted total equity growth since the recession, helping to benefit Shreveport real estate investors and homeowners alike. Equity gains in the last nine years have performed well, but they remain lower than the national average. However, the attraction to Shreveport real estate investing is expected to grow stronger, especially with rising appreciation rates and low home prices.
Foreclosures are another element to consider when investing in real estate. The Shreveport real estate market had 397 properties in some stage of foreclosure during the month of December, according to RealtyTrac. The number of foreclosures in December represents a 27 percent decline from the previous month and 54 percent lower than the same period last year. Bank owned real estate (REO), on the other hand, experienced a 16.1 percent increase from the previous month. In comparison to the previous year, however, that number was down 18.2 percent. The number of foreclosures in the Shreveport real estate market was mild compared to other markets across the country.
Shreveport, LA Real Estate Market Summary:
- Current Median Home Price: $170,700
- 1-Year Appreciation Rate: 6.7%
- 3-Year Appreciation Rate: 6.9%
- Unemployment Rate: 7.4%
- 1-Year Job Growth Rate: -0.4%
- Population: 200,327
- Median Household Income: $24,490
Shreveport, LA Real Estate Market (2016) — Q2 Updates:
The Shreveport real estate market continued to rebound in the first-half of 2016. The median home price for Shreveport real estate was $170,700 during the second quarter, compared to the national average of $239,167. Gains in the last three years have extended the trend of positive price growth after the recession. Appreciation rates also fared well in Q2. One-year and three-year rates for Shreveport real estate reached 6.7 percent and 6.9 percent, compared to 4.9 percent and 17.8 percent by the national average. Although lower than the rest of the country, home prices and appreciation rates for the Shreveport real estate market have grown in a positive direction for consecutive years.
Market factors helping to enhance the housing market in 2016 included home affordability. The Shreveport housing market ranked as one of the more affordable markets in the country during the first six-months of the year. Homeowners paid 8.3 percent of their income to mortgage payments, compared to the national average of 15.8 percent. However, the rate of new housing construction continued to decline. The level of construction in Shreveport during the second quarter was 13.3 percent below the long-term average, while single-family housing permits dropped by -24.9 percent. That said, the reduction in construction could limit new supply to the market, helping demand to catch up with inventory more quickly.
The local economy was another factor that influenced the Shreveport real estate market in 2016. Shreveport’s unemployment rate reached 7.4 percent during the second quarter, higher than the 4.9 percent by the national average. Job growth was another issue affecting the housing market, as one-year job-growth was -0.4 percent. That said, employment growth in Shreveport is poor and needs to improve.
Looking ahead, the Shreveport real estate market is forecasted to see weaker price growth in the next 12 months than the rest of the U.S, according to the National Association of Realtors (NAR). Home prices for Shreveport real estate are anticipated to grow by 2.7 percent, compared to the national average of 3.6 percent. While mild in comparison, the Shreveport real estate market is expected to see continued growth in both home prices and appreciation rates moving forward.
