Ascension Parish Real Estate Market Update - July 2008

This report presents a comprehensive view of the real estate market for detached single-family homes in Ascension Parish. Current and historical sales data are examined together with census projections to gain some insight into the future of real estate in this market area.* Historical and current data were obtained from the Greater Baton Rouge Association of Realtors MLS database. Data were extracted representing sales from January 1, 2003 through July 31, 2008. Only data for Detached Single Family homes were included in the analysis. Manufactured homes and multi-family dwellings are outside the scope of this analysis.

Ascension Parish Unit Sales

Unit sales in the parish picked up in both the new home and re-sale market segments.

Although improved, new construction sales are down substantially from previous years. Re-sale home sales, on the other hand, remain robust and compare favorably to pre-Katrina levels.

Looking only at July sales figures for the past five years, we can see that in July 2008 unit sales for the re-sale market were lower than in post-Katrina years but ahead of pre-Katrina years. New construction unit sales, on the other hand, were slower in July 2008 than in previous years.

Ascension Parish Absorption Rates

In the new home market segment it is a buyer's market overall, especially for homes priced over $350K. The highest velocity of new home sales was in the $201K-$250K price range. Homes priced between $151K and $300K accounted for 73% of new homes sales in Ascension Parish during the first 7 months of 2008.

In the re-sale market segment, it is a neutral market overall and, in the lower price ranges (below $200K) it is a seller's market. Once home prices exceed $300K does it clearly become a buyer's market. The highest velocity of home sales in this market segment was in the $151K-$200K price range. More than half of all previously owned homes sold during the first seven months of the year were priced below $200K.

As always, readers are encouraged to contact me directly for more information or to make suggestions on how this information might be improved.

I welcome readers to visit my websites at www.TheHomeVendor.com or 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.

©2008 by Don Stern - all rights reserved