Data shows that the number of existing homes sold in Lafayette Parish by the end of the year could fall to the lowest level in nearly a decade.

Only 1,291 homes changed hands through July, the lowest number since 2016, according to data from Bill Bacque of Market Scope Consulting. The data shows that buyers have been opting more for newly built homes as higher interest rates and higher sales prices have changed the market.

The total so far is nearly half of what it was in the first seven months of 2021, when interest rates fell to historic lows. This also pushed the share of newly built homes above 30% of all homes sold, for the first time since at least 2018.

Rising existing home prices pushed the average sales price up to just over $277,000 through July, up 2% from a year ago and 30% from five years ago.

Interest rates fell to their lowest level in 15 months this week, but are still well above historically low pandemic-era rates. The average rate on a 30-year fixed-rate mortgage fell to 6.47% this week, compared to 6.73% last week, reports show.

Pending sales nationwide fell 6.7 percent, according to a report Thursday from national brokerage Redfin. It’s the biggest drop in nine months, and the company’s Homebuyer Demand Index, which measures requests for showings and other buying services from Redfin agents, is down 13 percent from a year ago.

Buyers in Lafayette Parish are finding more relief in new construction. The average sales price of a newly built home is 6% lower than a year ago, when the average rose to over $330,000.

The larger builders are starting to build homes in lower price ranges, Bacque noted. Many of these new homes are being constructed in rural areas, which provides more incentive for buyers than if they were buying in a more urban area.

Through June, the largest increases in new construction occurred in rural areas of the township, including the area south of U.S. 90 and west of Johnston Street, which saw a 30% increase over the previous year.

The area east of Carencro is also seeing growth, according to data through June, and both areas have seen a greater increase in new construction than the Youngsville area, which has traditionally been the most new construction-heavy area of ​​the community.

Bacque pointed out that rural homebuyers do not have to make a down payment and can include closing costs in their overall loan.

“New or first-time homebuyers who don’t have that equity package but have a good job and can afford it are going to look at new construction,” Bacque said. “If I’m buying something for under $300,000 and it’s already there and everything I have on it is used up, the last thing I want is to be out of pocket paying for maintenance and upkeep.”