Pelican Point Real Estate 2007 Year-end Market Analysis

2007 was not a particularly good year for real estate in Pelican Point. Not only was it affected by the gloom and doom reported in the national press and the problems with mortgage lenders but the primary road into the subdivision was closed for nearly six months. Those six months included most of the peak selling season for real estate in our area. Overall, the real estate market in the parish is doing well. Home prices are holding. While unit sales volumes in the parish have dropped below the post-Katrina boom years of 2005 and 2006, they have only dropped back to pre-Katrina levels. I'm encouraged and quite hopeful that 2008 will be a better year for Real Estate in Pelican Point.

Pelican Point Real Estate 2007 Market Statistics

28 new homes and 32 homes in the re-sale market sold during 2007 at an average selling price/sq.ft. of $135.24 and $125.40 respectively.

Pelican Point Real Estate Sales Price 2002-2007

This chart shows that, while the average selling price of new construction grew in 2007, the average selling price of a home in the re-sale market fell by almost 9% from a high of $336K in 2006 to $307K in 2007.

Pelican Point Real Estate Sales Volume 2002-2007

As we said before, 2007 was not a particularly good year for real estate in Pelican Point. This chart show a significant drop in overall sales volume in both market segments but particularly with respect to new home sales.

Pelican Point Real Estate Absorption Rates

With 70 homes currently listed (not counting FSBO's) for sale within the subdivision, it is a buyer's market. There is approximately a 14-month supply of homes in both market segments (new and re-sale.) The charts above also show that the highest velocity of home sales in 2007 was in the $130.00-$130.99/sq.ft. price range for new homes and in the $120.00-129.99 price range for homes in the re-sale market segment.

I will be continuing to closely monitor and report on the state of the market so visit often.

Please feel free to leave comments. You can also reach me at (225) 413-3624 or by e-mail.

As always, I welcome readers to my websites at www.PelicanPointHomes.net and www.LiveAscension.com for real estate information about and to search for homes within the Greater Baton Rouge area. Click here to search for homes.

Don Stern