East Baton Rouge Parish Real Estate Market Update - 1st Quarter 2008

Home prices are holding their own in East Baton Rouge parish. The average price of homes sold in 2008 was about 12.5% higher than the 2007 average. The average price of a home in the re-sale market segment dropped slightly (about 2.5%) but remained higher than in previous years.

In terms of unit sales for all detached single family homes, volume is down it has turned around and is picking up. The strength in unit sales is attributable to home sales in the re-sale market segment.
Overall, there is only a 5.9 month supply of homes although it is clearly a buyer's market for homes over $350K where there is more than a 13-month supply.
There is over 9-months supply of newly construction homes with nearly a year and a half's worth of inventory of new homes priced over $400K. The good news for builders who have homes in this upper price range is that the absorption rate in 2008 is higher than in all previous years.
There is only 5.2-months supply of previously occupied homes. There is an over supply of homes in the upper price ranges (over $350K) but supply and demand below $350K is more or less balanced. While the absorption rate is currently at a historic low, we are at the start of the peak selling season and March saw a significant increase. If the trend continues, it is possible that we could meet or exceed the 2007 absorption rate and possibly even exceed it.

If you have any questions or you would like more detailed information, please feel free to contact me at (225)413-3624 or you can contact me via e-mail.

The preceding analysis was based upon data extracted from the Greater Baton Rouge Association of Realtors MLS database for detached single family homes currently on the market or sold between January 1, 2003 and March 31, 2008. The information provided is deemed reliable but is not guaranteed.

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

Contact me via e-mail or call me at (225) 413-3624 for more information.

©2008 by Don Stern - All Rights Reserved