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The rest of the story

Published: January 18, 2012

Filed Under: Market Trends

I was glad to see the front page of The Advocate this morning:  BR-area home sales up 3% in 2011.   All of us in the real estate business and those of you thinking about selling your home in 2012 should feel good about that.  But as Paul Harvey, a great old-time radio broadcaster, used to say, here’s “the rest of the story.”  The gains were made in the second half of the year and correspond with a decrease in the average price of sold homes.
 
Here’s the data for areas 4, 5, and 6 – LSU and south to Shenandoah and east.  With the exception of the 2nd quarter of 2010, which marked the end of the housing stimulus programs, we've seen a consistent decline in the number of homes sold vs. year ago until the 3rd quarter of this year.

Those of us who live real estate all day every day know that something happened in the 3rd quarter.  This market started to turn around and homes started moving again.
 
I think there were two major factors that have contributed to the turn around: 1) buyers and sellers realized that there weren’t going to be any more stimulus programs.  The national economy just wasn’t going to support more government spending at that level.  2) Interest rates have been at phenomenally low levels.  Those low rates have a tremendous impact on affordability and drove buyers who were on the fence into the market.
 
Digging a little deeper into the data you can also see that there was a corresponding shift in the average price of sold homes. 

There are lots of possible reasons for this.  It could be that there were more sales in the lower price ranges.  It could be that we had fewer high-end sales.   It could be that we had more foreclosures.  But the most logical reason for this is that home prices have genuinely come down.   And, in fact, if you go through the data neighborhood by neighborhood, you will see that more often than not, that is the case.
 
How much have home prices come down?  That depends on the house, it’s condition, and the neighborhood.  There are areas in Baton Rouge where home values really haven’t been affected.  And, there are others where there have been significant declines in the average sales price per square foot.  One thing I feel really comfortable saying is that a home in a good location, in good condition, priced right, and professionally marketed is going to sell.  And, if you are a buyer, it’s time to make your move!  The market has shifted, the rates are low, and the local economy is in reasonably good shape.
 
If a move is in your future, please give me a call.  Till next time.

Just in from Baton Rouge Business Report Real Estate Weekly

Published: November 15, 2011

Filed Under: Market Trends

Louisiana’s residential real estate market showed a significant increase in sales activity during the third quarter, with sales up 20.2% over the third quarter of 2010, according to Louisiana Realtors. Year to date, the number of houses sold in the state is up 2.7% over last year. “Our market has generally followed the national trend over the past year, but our employment numbers have held stronger than the national average, and real estate activity now seems to be bouncing back from the ongoing effects of a slow economy and the BP oil spill,” says Louisiana Realtors President Malcolm Young. While sales were up, the average sale price slid 0.9% in the third quarter to $184,971, compared to the same period in 2010. Nonetheless, the average sale price was up 1.5% compared to three years ago. The Greater Baton Rouge market showed the greatest increase in sales activity in the state, with home sales up 31.9% over the third quarter of last year. The Houma-Thibodaux metro area posted a 26.8% sales increase on the quarter, while Lafayette saw a 24.3% increase, greater New Orleans a 21.3% increase, Lake Charles a 21% increase, Monroe a 19.4% increase, and Alexandria a 11.6% increase. The northwest Louisiana market, which had cooled some in the second quarter, remained flat in the third quarter. Sales in the Shreveport-Bossier area were down 0.9% on the quarter.

Re-listed, Re-marketed, Re-priced, Re-Markable – Oak Hills Place, Baton Rouge, LA

Filed Under: Just Listed

You have to see this beautifully updated home in Oak Hills Place. All new kitchen cabinets, granite tile counter tops, stainless steel appliances, light fixtures, and ceramic tile floors. The master suite has a luxurious jetted tub, new tile, and new fixtures. Even your guests have a updated bath with a new sink, counter top, and fixtures. There are new raised panel doors, fluted and rosette window and door trim, and crown moldings throughout. Each bedroom has a walk-in closet and the master has additional closet space in the adjacent dressing area. The windows have been replaced and the architectural shingle roof is just 4 years old. The home has a spacious yard, storage area, and covered rear patio for outdoor entertaining. All this is located minutes from Perkins Rowe, the Mall of Louisiana, the Surgical Specialty Center, and The Neuromedical Center and is accessible from Highland, Perkins, or Siegen.

On the lake in Azalea Lakes, Baton Rouge, LA

Published: October 30, 2011

Filed Under: Just Listed

Yesterday I spent the day listing a home in Azalea Lakes. I just had a take a movie of the backyard view of the lake. The home is offered at $217,000. Call me for details and check out the view!

Price Trumps Location

Published: October 6, 2011

Filed Under: Market Trends

What’s most important to today’s homebuyers?  For this and other stories, listen to News You Can Use from KW.

Chicken Little and The Federal Reserve Bank

Published: September 13, 2011

Filed Under: Market Trends

It seems that every day we get bombarded with negative news.  OK – things have not been great, but the sky is not falling and it looks like low interest rates are at long last helping our real estate market.  For those of you who know me from my “pre real estate life” you know I’m one good market analyst.  NOW would be a really good time to list your home.  Take a look at the stats below.

Home Sales are Picking Up

Home sales are seasonal.   The number of homes sold tend to bottom out in January and peak in June and July as families complete their moves before the school year begins. And, while we were off to a slow start this year, the past few months have been good.  In fact, August sales in areas 4, 5, and 6 put in their strongest showing in 3 years. (August 2009 – 287 homes sold, August 2010 – 229 homes sold, August 2011 – 302 homes sold).

 

 

What I think is really important about this is that the improvement in home sales has been accomplished without additional tax credits.  Yes, they were great and they helped us sell homes in the Spring of 2010.  But, they didn’t help long term.  They just shifted demand.   What we are seeing now is different.  I think it’s the low interest rates.  I just can’t imagine it getting any better than this for a home buyer.

Home Prices Are Holding Steady

From month to month, the average price of a sold home in the area is going to fluctuate.  What’s noteworthy about home values in areas 4, 5, and 6 is that despite some bumpy economic times, our home values have remained relatively steady.  Compare Baton Rouge to what’s happened in cities in California and Florida.  We have so much to be thankful for here.  And, I think about that every day.

 

 

Inventory Levels are Dropping

While the number of homes sold and the average price is nice to know, what matters most when you list your home for sale is the competition:  How many homes are available that are similar to yours?  We tend to look at historical data because that’s what appraisers must use in determining home values.  But, the buyer for your home can’t buy a home that is already sold.  They choose from the existing inventory.


When inventory levels are high (greater than a six month supply) most in real estate consider it a buyers market.  When inventory levels are low (less than a 6 month supply), most would consider it a sellers market.  Just look at what’s happened to inventory.  It’s shrinking steadily.  Out of all the numbers to watch this is the most important one.

If you’re thinking about selling your home, let’s talk about what happening in your neighborhood.

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