Real Estate Market Remains Hot in Lafayette Due to Low Inventory and Low Interest Rates

Posted at 5:54 AM, May 20, 2021
and last updated 2021-05-20 06:54:01-04

Mask mandates have been lifted and so many marks of the coronavirus pandemic are fading, but there is one industry that is still feeling the impacts and it's actually beneficial for many people involved.

"I signed my new lease this year, or at the end of last year and I was like yeah I can't do this no more," says Chelsea Jones, who in that moment decided this will be the year she looks to buy her first home. Her search for the perfect place hasn't been easy though.

Stephen Eggleston with Keller Williams explained this could be because of the big gap in supply and demand.

"A balanced market is about six months worth of inventory. Meaning if we never listed another home, in six months we'd be out of inventory. We've got about six weeks of inventory on the market, so it's like the wild wild west out there," says Eggleston, adding that this would be considered a seller's market.

Still, he says, buying a home is likely more beneficial than renting once you run the numbers.

"With the interest rates where they are, low 3's high 2's, you may rent for 1400 you may buy for 1000," he says.

These numbers start to look even better for first-time homebuyers.

"In Lafayette Parish there are different programs for first-time homebuyers where they give you a certain amount of money that you can use toward your down payment, toward your closing cost," says Eggleston.

If you've made the decision to buy, he offers one piece of advice:

"Go get preapproved! You're going to need to speak to a lender or a lending institution to find out how much you qualify for. Until you do that, there is no point in going into the market and looking."

For sellers, he says, be prepared for a flood of offers if your house is priced well and ready to sell.

"People are putting homes on the market and multiple offers, people are rushing to get it because you have 50 people competing for 15 homes."