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If you’re thinking about selling your home in Louisiana, you should know that many homeowners have had to drop their prices.
A new study has revealed the states struggling to sell houses at their market value, naming Louisiana as the eighth-worst state with only 38.8% of properties sold at the listing price or above. The real estate market in New Orleans and elsewhere is the reason.
The data, researched by real estate experts Agent Advice, used Zillow house price data for each state to see the regions with the most properties sold undervalue. The data looked at the most recent 950 properties sold to find the states with the highest percentage of those sold below the listed price.
The research found Florida was the state with the most properties sold undervalue at 69.4% of recent sales being bought below the listed price. Currently, Florida’s average house value stands at $399,807 according to Zillow, with this being an increase of 3.4% since last year. Presently, the median list price as of April is $433,300 yet the average sale price is $368,33. Evidently, there is a disparity in the amount residents are willing to pay compared to what sellers want to receive. On average, it takes a property just 33 days to go into pending- the time it takes from listing to an offer being accepted without the deal being closed.
In second place is Montana, which sold 68.1% of homes undervalue according to the most recent data. In the last year, Zillow reported the average price of a home has gone up by 5.8%, resulting in the average house costing $463,645 which is unaffordable for many. As of April this year, the average time to pending took only 21 days. The average listed price stood at $519,633 but the average sale price was much lower at $447,167.
Coming in third is Wyoming. Wyoming saw 64.7% of houses sold undervalue according to the data, with the average listed price standing at $393,816 but the average sale price being $306,349. On average, properties in the state took 23 days to go into pending and the current median house price is $344,250.
Sitting in fourth place with a rate of 63.4% of homes sold undervalue is Kentucky. Kentucky has one of the shortest times to pending on this list at just 10 days on average. Zillow currently lists the average house price at $207,548 which stands at a 5% increase from last year. On average, the median list price is $274,933 compared to the median sale price of $229,933.
With rates of 62.3% of properties sold under value, Wisconsin and Missouri come in joint fifth place. Wisconsin saw a 5.6% increase in house prices in the last year, with the average house valued at $302,612. On average, it takes just 17 days for a property in the state to have an offer accepted, and the average sale price is currently $250,667.
As for Missouri, the state saw a 5% increase and has an incredibly fast speed of taking only 8 days for a property to go into pending. At present, the typical home is valued at $247,255 whilst the average sold price is $228,267 according to the latest data.
States with the most homes sold undervalue, ranked
Rank State Percentage sold undervalue 1 Florida 69.4% 2 Montana 68.1% 3 Wyoming 64.7% 4 Kentucky 63.4% =5 Wisconsin 62.3% =5 Missouri 62.3% 6 Arizona 62.1% 7 Texas 61.3% 8 Louisiana 61.2% 9 South Carolina 60.4% 10 Tennessee 60.0% The state with the sixth highest rate of homes sold under value is Arizona, which saw 62.1% of houses sold below the listed price. Arizona is one of the pricier states and currently, the median house cost is $433,667, a 4.1% increase in the last year.
Texas ranks seventh in the list citing a rate of 61.3% of properties sold under the original listed price. The state saw just a 1% increase in house prices compared to last year, relatively low compared to other regions, with the average house now costing $307,038 and taking, on average, 25 days for an offer to be accepted.
Ranking eighth is Louisiana, with a rate of 61.2% of all recent properties sold undervalue. The southern state is one of a few areas that saw a decrease in the average house price, seeing a 2.6% lowering of the cost. At the moment, Zillow lists the average property as costing $202,392.
South Carolina comes next with 60.4% of properties sold under value according to the most recent data. In the last year, it has taken an average of 17 days for a property to go into pending, and house prices have risen 4.3% resulting in the average property costing $296,251.
Rounding off the list, Tennessee takes tenth place following a rate of 60% of houses sold below listed value. Now, the average property costs $321,755, an increase of 4.7% compared to last year.
Read our guide on how to buy rental property in Louisiana.
On the other side of the study, Connecticut was found to be the state with the lowest number of properties sold undervalue at just 30.9%. According to Zillow data, the average house is valued at $399,242, an increase of 11.6% from last year.
Commenting on the findings, an expert from Agent Advice said: “The real estate market is known for its fluctuations, often influenced by factors such as climate, location, and economic trends.
“It is interesting to note the current trend for a lot of southern states where properties are sold under value. Consistently, southern states have ranked low in terms of average wages, education and environment. Hopefully, though, these rankings are beginning to be overturned as more people recognize the opportunities living in the south can bring and we may well see a growth in popularity for the region as lawmakers bring about positive change.
“It is crucial for buyers and sellers to stay informed about the local market and what trends are occurring. Buying a house can be very exciting but it takes a lot of thorough research and good legal advice to ensure you are making the best purchase in yours and your family’s future home.”
Final Thought
Buying a home in Louisiana can be a gamble, but that’s true everywhere.
If your finances need work, make sure you try to raise your credit score so you are an attractive homebuyer.
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