I am asked several times a week how is the real estate market? Whether they are just making conversation or really want to know, it is time to take a look at our market.
A look at the residential and commercial markets will give us an idea of how active our markets are today. It will give a glimpse into the near future and what we can expect. Especially is it important if I am planning on selling my home or buying a new home or investing in real estate. The following are from January 1st thru May 1st , 2021 compared to the same period of 2020.
RESIDENTIAL MARKET — This market is doing better than the 2020 market. The reported sales in 2021 of $116 million was 22% over the 2020 sales of $90 million. It appears that with the pandemic lock down in 2020 it had a moderate effect on the market. With a reported number of units sold in 2021 of 530 units compared to 447 in 2020. Now in 2021 with the pandemic ending more people are getting into the buying mode and looking to move.
COMMERCIAL MARKET — This market has slowed from 2020 to 2021 and is down 27% in sales from January 1st to May 1st, 2021 compared to the same period 2020. Although I anticipate an up-tick in sales before the end of the year. I have either closed or have under contract to close in 30 days almost $4 million. I am sure there are a number of other commercial properties under contract preparing to close.
The real estate market is currently driven by low interest rates and the anticipation of coming inflation. The negative factors on the market are the escalation in building costs and the political uncertainty such as doubling capital gains tax and increased personal tax rates.
On the Local Scene
THE FLYING HEART BREWERY is under construction at 204 Commerce Street, West Monroe.
THE RETAIL CENTER at 3617-3619 Cypress Street, West Monroe has been sold for $1,900,000. This center is occupied by U-STORE-IT and FLOORING ONE. It also included 14,000 sf of Mini-Warehouse rental space.
Bill Roark is a Commercial Associate Broker at Tri State Properties and may be contacted by email to email@example.com.