Posted by: jeb1 | May 14, 2010

Good News for the Shreveport-Bossier Housing Market

                In 2009, the average selling price of homes was up by 5% in the Shreveport-Bossier area. This is on top of a 2% increase in 2008. On average homes sold for 96% of the asking price and the average selling price was $162,759. Why have home sales in northwest Louisiana continued to grow while the rest of the country is plagued by poor sales prices and foreclosures?  There are several contributing factors as to why the northwest Louisiana housing mart has continued to grow.

                The first reason is that the local market was not overbuilt as in many other areas of the country. The supply of available homes has decreased but the demand has increased. This has caused the Shreveport-Bossier area to have fewer foreclosures and distressed property sales as compared to the rest of the country. In fact, northwest Louisiana has had one the fewest foreclosure rates in the nation.

                Another reason that home prices have remained stable is that real estate in the Shreveport-Bossier area is undervalued compared to the rest of the United States. In 2009, the median price of an existing home in Shreveport-Bossier was $139,900 compared to the U.S. median home price of $172,500. Because of this buyers in the Shreveport-Bossier market have been able to get more house for their money than they would elsewhere in the United States. Therefore, less home buyers are overextended on their mortgages, resulting in fewer loan defaults.

                Also from 2000-2005, demand for home purchases grew and so did prices. During this time period the average home price in Shreveport-Bossier rose from $98,500 to $140,150. That represents a 42% increase over 5 years. Even with a decrease in demand, home prices have never fallen. In 2009, the average home price was $162,700 for existing homes.

                More good news for the Shreveport/Bossier is that our unemployment rate is significantly lower than the rest of the nation. In 2009, the Shreveport-Bossier unemployment rate was 6.7% while nationally the rate was 9.3%.  From 2000 to 2007, the population of Caddo and Bossier Parishes also grew from 350,471 to 361,314. While there has been some decline over the years in population overall Caddo and Bossier Parishes have grown a combined net total of 10,078 people since 2000. The population is projected to continue growing because of Barksdale Air Force Base’s Global Strike Command, which will add about 500 new families to our area.

                Because of these factors home prices are projected to increase over the next year. It is a great time to remodel your home. Construction costs will only go up next year. Interest rates are at record lows and we have rising home values in our area. Call JEB Design/Build today at 318-865-4914 for your free consultation!

*Above figures are according to Brad Gosslee, President of Coldwell Banker Wesley-Dowling.

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