Villages at Tiburon: Market Trends

Below is an excerpt from the Neighborhood Market Report I am working on for the Villages of Tiburon. If you would like a full copy of the report, please send me an email or call (318) 734-9001!

Market Trends Since 2006

The Villages at Tiburon has proven to be quite a success to its developers, and doesn’t look like it will be losing steam any time soon. Since the first home sold in 2006, property values in the Villages at Tiburon have appreciated as high as 7.5% in one year! Since 2006, NEW CONSTRUCTION values have increased 13.77%, an average of 2.3% per year.

The first “EXISTING HOME” to sell in the Villages at Tiburon was in 2007; since then existing home values have increase 11.79% (an average of 2.9% per year). Figure 1 shows the appreciation of property values per year since 2006.

It is important to note that from 2010 to 2011 the values of both new construction and existing homes stabilized, with new construction appreciating only .7% and existing homes appreciating at 1% from the previous year.

Figure 1: Average Price Per Square Foot by Year

2011 Home Sales

Market Outlook

With the stabilization of the market from 2010 to 2011, it is safe to assume that the Villages at Tiburon will maintain its values through 2012. However, with the large quantity of building that is going on in the new phase, a slight depreciation of existing homes could be possible as we saw in 2009. The reason for this is because home buyers are drawn to new construction homes. It is a phenomenon that is difficult for many to understand, but more often than not home buyers will be drawn to the appeal of a being the first owner of a property and the possibility of choosing finishes such as the flooring and counter tops. This appeal is often so strong, that these buyers will overlook an existing property with larger lots, fenced yards, sprinkler systems, and so on.

Now all that being said, we have seen the builders on both sides of Tiburon pushing the market this year (much higher prices than last year), which may help existing homes to sell more easily. The key to successfully selling existing homes in any developing community is for the homeowners to be realistic on their values. It is important to remember that an existing home is almost never equal in value to a new construction home. In 2011, new construction homes in the Villages of Tiburon sold for 2.5% more (price per square foot) on average than the existing homes.

Demonstrated by the consistent appreciation of property values each year for the last 6 years it is safe to assume the Villages at Tiburon real estate market will hold strong, even with the builder’s push. Like I mentioned above this is a benefit to the existing homeowners who would like to sell in 2012. A good strategy to compete with the builders is not to push the market as they are. If you follow their lead with an unsupported increase in value, the buyers will turn to new construction. However, if you price your home accordingly to the past sales and appreciation tables, you may be able to show potential buyers the true value in purchasing an existing home over a new build. As long as our community is being developed, an issue that will remain constant is the desirability of new homes over existing ones.

If you are interested in finding out a current value for your property please give me a call at (318) 734-9001 to request a Comprehensive Market Analysis of your property, or visit www.JennyTheRealtor.com.

Jenny Hogue-McCarty

Realty Executives SB

2250 Hospital Drive, Suite 248

Bossier City, LA 71111

Licensed in Louisiana!

Independently owned and operated.