Published: February 27, 2018
Filed Under: Market Trends, Real Estate Investing
Have you seen all the new construction just a little bit north of the LSU campus?
Yes, I said north … not south. If you drive up there you will see new building after new building being built. My husband came home the other day and said, “What is that?”
Well, it’s LSU’s Nicholson Gateway Development. It’s 28 acres that will include apartment homes for upperclass men and women as well as graduate students. It also includes rec space, retail space, parking, and the LSU Foundation offices. The project is funded jointly by the LSU Property Foundation and private developers.
You’d think with all the new rental construction going on south of the LSU campus that we wouldn’t need anymore student housing. And, if you own a townhome or a condo nearby that your children live in while attending LSU you’ve got to be wondering what impact all this will have on your property values.
During the past few years we’ve seen new construction at The Cottages (now The Lodges at 777), The Exchange, Arlington Cottages and Townhomes, Wildwood, The Woodlands, Sterling Burbank and I’m sure I’ve left out a few. Not surprisingly, it’s about the money and what it costs to send your child to LSU.
The graph above includes all attached home sales (condos, townhomes, and duplexes) in MLS area 52 that were previously owned, i.e., not new construction. I decided to eliminate new construction from this analysis because it really is very different from the inventory of existing homes. Including those homes in the year they were introduced really screws these numbers.
What you see is that after Katrina we had a run up in the cost of condos, townhomes, and duplexes in the area. Some of that was speculative, and some was just a concern about having a place to go if you lived in New Orleans and a major hurricane was on it’s way. But around 2008 our market started to shift. There are a number of factors that contributed to this, and honestly, these averages smooth the losses in value in some student-centric neighborhoods near LSU.
When you combine the post-post Katrina effect of New Orleans residents returning home, with the problems the US economy was experiencing in 2008 – 2011, it’s not surprising that parents were not too keen on buying property for their children. Having worked with many parents during those years what I heard was,
“When the stock market looses that much value, you just don’t feel as comfortable buying a second home for your kids.”
What changed?
In 2011 The Cottages of Baton Rouge opened. They were nice. They were new. And they were expensive. As more and more new apartments were built, with rents around $700- $800/month per student for a 2 bedroom apartment and $600 – $700/month per student for a 3 bedroom apartment, the surrounding existing inventory started to once again become attractive.
A 2 bedroom/2 bath apartment at LSU’s new Nicholson Gateway Apartments will cost you $4,940/semester per student. That’s $9,960 for two semesters, and if you stay for the summer months it’s an additional $2,470. So that’s a little more than $1,000/month!
Click here for a link to the fee schedule. That’s pretty swank for a college kid. I have no doubt they will be very nice and a needed and welcome addition to the north side of the campus. For most of the parents I work with, however, they’re still going to be interested in some lower cost alternatives on the south side of the campus.
Published: February 7, 2018
Filed Under: Market Trends
While you may not know it from our recent temperatures, Spring is right around the corner. As we head into an historically busy time of year for home sales, many of my clients have asked about current market conditions and what’s in store for 2018.
Last week I read with interest The Advocate’s article on 2017 home sales in the greater Baton Rouge area. Yesterday The Business Report shared Corelogic’s report on home values in the Baton Rouge area. And while most of this is good news, those of us who live in and around the LSU area know that this part of town is a little bit different. Near LSU, home prices are the highest in the metro area, land is scarce, and we weren’t as directly impacted by the August 2016 flood as other parts of Baton Rouge. So I decided to dig a little deeper and share with you what’s going on in my neighborhood.
Here’s our chart from last year updated with this years’ numbers. After a significant rise in 2016, average home prices are holding steady. In light of the market upheaval we experienced after the flood, I’d say that’s pretty good news.
What I think is important to keep an eye on this year is “supply” and “days on market.” As of this morning there are 366 detached single family homes available in the areas between LSU and Country Club of Louisiana. Last year 1,340 homes were sold in this area. So, that means that there is currently a 3.3 month supply of homes available. For home sellers this is very good news. And take a look at what’s happened to days on market.
Predicting what’s going to happen to home values is a pretty risky business, especially in this part of Baton Rouge where you have a lot of variety in the types of homes available, their age, and condition. But when you have an asset that’s in short supply in an economy that’s strong, I think it’s reasonable to believe that home values should rise.
Real estate is local. Your agent should be, too. If you’re thinking about buying or selling a home in areas near LSU give me a call. The number is (225) 772-8709 or email me at [email protected].
Published: October 5, 2017
Filed Under: New Construction
Lancaster Construction just announced that they are about to break ground on some new townhomes located near LSU. When on Burbank, go to the entrance to Pelican Lakes. These homes are located between the existing townhomes and the single family homes being built by DR Horton.
The new homes at Stonelake Village are townhomes, not condos, so you own the land and will be able to get traditional conventional financing. That’s important because it means that you can buy one of these homes with as little as 3% or 5% down and use any lender you choose. Two and 3 bedroom floorplans are available, and amenities include granite counter tops, stainless appliances, all laminate flooring (no carpet), custom cabinets and 9 ft. ceilings. These homes will be ready in the Spring, in time for the August 2018 academic semester. Give me a call for more details. To see what’s available go to Stonelake Village on HeleneKurtz.com
Related content: Buying New Construction.
Published: September 14, 2017
Filed Under: New Construction
Alvarez Construction has recently announced plans to build 102 homes at Willows at Bayou Fountain, a new community located off Burbank Drive and Siegen Lane. The neighborhood will feature a central lake, reclaimed brick exteriors, architectural shingle roofs, sidewalks, and neighborhood green spaces. There are 20 floor plans, some with 3 and some with 4 bedrooms, ranging in size between 1,809 sq. ft. and 2,246 sq. ft. of living space. Construction is planned to begin by the end of 2017. Check back for listings as soon as they become available or call me for details so you can be one of the first to own one of these fine homes: (225) 772-8709.
Looking for new construction near LSU? Visit www.HeleneKurtz.com/homes-near-LSU.
Related content: Buying New Construction.
Published: September 13, 2017
Filed Under: New Construction
Lake Villas is a new DSLD community off Ben Hur Road, near the intersection of Burbank and W. Lee Drive. Three and 4 bedroom homes will be built ranging in size from 1,538 sq. ft – 2,397 sq. ft. of living space. All the upgrades will be “standard” features in these new homes, so expect to find some nice bells and whistles! And, I’m told that if you use DSLD mortgage and DSLD title, the builder will contribute $5,000 towards your closing costs. Construction starts Fall/Winter 2017 with homes becoming available in Spring 2018. Check back for listings as soon as they become available or call me for details so you can be one of the first to own one of these fine homes: (225) 772-8709.
Looking for new construction near LSU? Visit www.HeleneKurtz.com/homes-near-LSU.
Related content: Buying New Construction.
Published: February 17, 2017
Filed Under: Market Trends
Looking for a home in the LSU area this Spring? You’re gonna need some help.
Over the past couple of years the monthly supply of homes, a key indicator of the balance between supply and demand, has gradually gone down in the areas surrounding LSU. Since the August 2016 flood that trend has continued. Those of us who live here know that since August the traffic on Perkins, Highland, Acadian, Essen, and Bluebonnet has increased dramatically as our neighbors from other parts of the Parish have moved here. We’re all having to give ourselves more time to get to wherever we need to go. So it’s not surprising that in December there was just a 3.38 month supply of detached single family homes near LSU. That’s a classic indicator of a seller’s market and it’s made finding a home near LSU a real challenge.
Is it temporary or permanent and what impact has all of this had on home sales and values? It looks like at least some of the people in those long lines of traffic have decided to stay in the area. Low inventories mean that nice homes are not going to stay on the market very long if they’re priced right and in good condition.
Not surprisingly, we’re also seeing an increase in home values. Since 2014, the average price of a detached single family home in the areas near LSU have increased from $310,261 to $341,217 … a 10.0% increase. It’s hard to say what affect the flood has had on value but my daily experience helping clients buy and sell homes suggests that we’re looking at a sustained upward shift in the price of homes. It’s just my opinion, but I don’t think it’s like Katrina when folks who moved here went back to New Orleans. I think that flood victims who have decided to buy homes in area 5 … homes near LSU … are likely to stay.
So, what do you do if you’re in the market for a home near LSU? Work with a responsive and experienced agent who can:
1) Send you listings, directly from the MLS, as soon as they are entered into our systems,
2) Help you negotiate the deal. You don’t want to be in a multiple offer situation without a pro by your side,
3) Help you identify the resources you need to successfully move the purchase through the contract to close process, e.g., lenders, home inspectors, contractors, title companies, insurance agents.
And don’t forget …
4) Get yourself pre-qualified for a loan! Know how much you can afford and be prepared to act quickly. Most sellers will not consider an offer without a pre qualification letter or proof of funds for an all cash transaction.
If you’re thinking about buying a home this Spring call me at (225) 772-8709, email me at [email protected] and visit my website, http://www.HeleneKurtz.com.
Published: January 13, 2014
Filed Under: Just Listed, Videos
One of the things prospective clients frequently ask is, “How do I know that you’ll do a good job?” I am happy to provide a list of former clients whose homes I’ve sold that are similar to yours with similar circumstances or similar price ranges. And then, of course, there is the work itself. I take a lot of pride in the work that I do and in the relationships I have with the people I serve.
This is a portfolio of some of the homes I’ve recently listed and sold in the Baton Rouge area. Each one is special to me as are their owners.
How your home is presented to the public is a critical part of getting it sold. No matter the size or price of your home, it’s all about professionalism in every aspect of the job. If you like what you see and want your home included on the list, give me a call at (225) 772-8709.
Published: March 4, 2012
Filed Under: Just Listed, Videos
I just listed this home in Area 5 off of Staring Road. Two appointments scheduled this morning. It’s really a gem and at a great price. $315,000, 3BR/2.5BA, 2,432 sq.ft. of living space. It’s so hard to find a home with Baton Rouge with acreage. This one has over an acre, a gunite pool, beautiful Brazilian hardwood floors, and a gourmet kitchen. So much attention to detail in this home. A beaded board ceiling in the keeping room, waistcoting in the guest bath, dual shower head in the master bath plus a jetted tub. It doesn’t stop there … the boat port/storage area has built in cabinets, and the attic is floored for extra storage. Come by and see it. It’s a great value and a great home.