http://www.batonrougemarketmetrics.com/ - Baton Rouge Market Metrics: Old Jefferson Home Price Trends 2011 Update. Read below where there is an oversupply and some overpriced listings in Old Jefferson. Baton Rouge Real Estate: How Is Old Jefferson Subdivision Performing Into 2011? Since the Federal Tax Credit Expiration in May 2010, the number of home sales has declined considerably. And, the number of foreclosures has continued to rise. With fewer sales and more foreclosures, this increases the percentage of the number of sales as foreclosures. In 2010, GBRMLS reported 2 foreclosures and in 2011 Year-To-Date, no foreclosure solds.
This is an on-going series into the decline of Greater Baton Rouge Home Values and why potential buyers should beware and not pay too much for "some" local overpriced listings. YES, there are overpriced listings in the Greater Baton Rouge Housing Market! Bill strongly recommends in this housing environment to obtain a Pre-Purchase Appraisal to gain ALL of the facts before making a local home purchase decision.
A recent home appraisal in and analysis of Old Jefferson revealed this interesting finding. From 2008 to 2011, the median sales price has continued to decline. From 2008 to 2010, the median sales prices were $149,900, $147,000, $145,000 and in 2011 it's currently $140,200 based only on 4 sales (the chart below isn't updated yet). Again, this is only based on 4 sales in the first 4.5 months of 2011. In 2010, there were 22 total sales, so one can see that the number of home sales has dropped considerably. NOTE: There is no indication per GBRMLS sheets that any of these 4 2011 sales were distressed or foreclosures, just a correction to a lower price level.
THE CORRECTION IN HOME PRICES - This is becoming the familiar "Stair Step Up and Stair Step Down".....The Climb And Then Descent Of The Stairs In This Chart Below Visually Explains The Correction! And, so does the chart below it showing a correction.
The Chart below shows a considerable correction since May 2010 for home comparable to a larger 2,000sf in Zip 70817. Yes, the average home in Old Jefferson is 1,500sf to 1,600sf. The home I was appraising had an addition.
CURRENT LISTINGS. There are 20 current listings from $117,000 to $174,900 with 18 active and only 2 pending or under contract. So, there is a major oversupply of available homes for sale in Old Jefferson. The Average Listing Price per sq. ft. is $91.23/sf, which is too high and the reason these homes aren't selling. If you examine the chart above, 2011 support is now in the $80s/sf, not the $90s/sf. This is called sellers in denial. AND, the 2 pendings have an average listing prices of $83.60/sf, further proof that reaching $91/sf in Old Jefferson was something that took place in 2010 but no longer in 2011. And, CoreLogic tells us that Baton Rouge is in its' 8th straight month of declines.
DISTRESSED LISTINGS. Out of the 20 current listings, 1 is a foreclosure and 3 are short sales. So, 20% of available listings are distressed in nature.
NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2008 to May 20, 2011. This information was extracted on 5/206/2011. YES, permission was granted by GBRMLS to use Subdivision Price Trends Chart Report!
AUTHOR'S BIO:
Bill Cobb is Greater Baton Rouge’s Home Appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A home appraiser with 20 years experience, Bill Cobb brings a wealth of knowledge to the table as a home appraiser.
Bill’s company, Accurate Valuations Group, serves Greater Baton Rouge (East Baton Rouge Parish, West Baton Rouge Parish, Western Livingston Parish and Northern Ascension Parish).
Contact Bill Cobb and Accurate Valuations Home Appraisal Group for your next home appraisal:
Office: 225-293-1500, Cell: 225-953-0638
Fax: 1-866-663-6065
info@accuratevg.com
http://www.accuratevg.com/
