Livingston Parish Residential Real Estate Market - 2008 Year End Report

My last blog entry dealt with the state of the real estate market in Ascension Parish as of the end of 2008. This post deals with the state of the market in Livingston Parish.

The information presented in this post is based upon data extracted from the Greater Baton Rouge Association of Realtors MLS database. For the purposes of my analysis, I included data for detached single family dwellings which sold in Ascension parish for the years 2003 through 2008. I identified the home sales as either New Construction or Re-Sale because, in my experience, they have distinct characteristics.

The following chart provides some general statistics.

An interesting contradiction appears in this chart. Both the median selling price and the median selling price per square foot of living area are higher for re-sale homes than for new construction but the averages of both these statistics are reversed... new construction stats are higher than existing home statistics which we are accustomed to seeing. I believe that affordability and pricing has had a major impact upon new construction sales. I'll look at this again later in this post when absorption rates and inventory levels are discussed.

Overall unit sales have been declining in Livingston Parish since the summer of 2007. While existing home sales peaked during the summer of 2008, the seasonality effect didn't impact upon new home sales where sales remained flat during the summer and then continued to decline afterward. The re-sale market remained at healthy pre-Katrina levels in terms of unit sales.

If one looks at absorption rates and inventory levels (shown in the next two charts), we can see that overall it is a neutral market for both new construction and re-sale market segments. If one looks deeper, however, it becomes apparent that price elasticity is a factor. Most home sales in both market segments were for homes priced under $200K. As prices increase above that it rapidly becomes a buyer's market and the velocity of home sales diminishes rapidly.

I've authored a report which examines the residential real estate market for the Greater Baton Rouge metro area in much greater detail than has been presented here. Click Here to view the table of contents for this report.

©2009 by Don Stern - All Rights Reserved
(225)413-3634 phone (225)313-3698 fax
don@thehomevendor.com - email
www.TheHomeVendor.com www.DonAndAlishaStern.com www.LiveAscension.com www.PelicanPointHomes.com

If you haven't visited Denham Springs, Watson, Walker, or other areas of Livingston Parish lately, you will find many new interest spots and many new subdivisions. One of the now established firsts was the Bass Pro Shop off the Denham exit of I-12. There you can get just about anything you need for fishing, hunting, and outdoor activities. Just down the road from the Bass Pro Shop at the Juban exit, there are plans for a shopping center and you'll see new subdivisions popping up.

One of these subdivisions is Clearlake. These garden style homes are clustered around the banks of some beautiful finger lakes. Many have decks where you can catch fish like the one this resident caught.

Ah, yes, and getting there.... The Livingston Parish News in its top 10 stories of 2008 highlighted the development of roads in the parish:

"The best thing to come to Livingston Parish from the surge in oil prices last year was a $100 million appropriation to widen I-12 east of O'Neal Lane into Livingston Parish. The fastest-growing parish in Louisiana received record attention....Other major projects benefitting our area includes the completion of a widening project for La. 16, now four-lane all the way from Watson to the interstate. Also, a new Florida Boulevard bridge across the Amite River is under construction"

http://denhamspringsappraisers.com/- Denham Springs FHA Appraisers Report On Easterly Lakes Subdivision 70706

Solds from 12/12/2006 to 12/12/2007 revealed:
Average Sales Price: $243,092
Average Sold Price Per Sq. Ft.: $112.94
Median Sold Price: $235,000
Low Sales Price: $192,000
High Sales Price: $360,000
Average # of Days On Market: 63
# of Sales: 13

Solds from 12/12/2007 to 12/12/2008 reveals:
Average Sales Price: $243,670
Average Sold Price Per Sq. Ft.: $109.66
Median Sold Price: $229,450
Low Sales Price: $199,000
High Sales Price: $315,000
Average # of Days On Market: 135
# of Sales: 10
Listing Price To Sales Price Ratio Has Been: 97.74%

Therefore, based on the median sale price barometer (the barometer used by the NAR National Association of Realtors) within Easterly Lakes, the market direction appears to be decreasing slightly. The average sales price has increased by +$578, median sales price decreased by -$5,550 and average sold price per sq. ft. has decreased by -$3.28/sf.

Easterly Lakes data presented with the permission of the GBRAR.

Author's Bio:

Bill Cobb, CREA, is Greater Baton Rouge's favorite and most reputable home appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A home appraiser with 16 years experience, Bill Cobb brings a wealth of knowledge to the table as a home appraiser.

Bill's company, Accurate Valuations Home Appraisal 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

Fax: 1-866-663-6065

fastvalue2@cox.net

http://www.denhamspringshomeappraisals.com

One of the neighborhoods you will love if you are a fisherman is Clearlake Subdivision in Denham Springs Louisiana. This quiet area is just off the new Juban Road Exit of I-12. A community of homes built on Powell Lane which borders the banks finger lakes give each homeowner access to the private lake area.

Here Mattie, a resident of the neighborhood reels in a big one as her dad watches and snaps a photo.

You can buy your tackle just one exit down at the new Bass Pro Shop in Denham Springs. Clearlake's location is the first turn off I-12 at Juban making it easily accessible for a commute to downtown Baton Rouge or east to Hammond, Louisiana.

There are plans for future development of this area with proposals such as the new Juban Crossing.

So, pick up your rod and reel and relax in your own back yard.

http://www.southpointappraiser.com/ - Denham Springs Real Estate News: South Point Subdivision 2008 Solds Update With Charts

Below is 2 recent charts I completed reporting on the 2008 solds within South Point Subdivision Year To Date. According to the GBRAR MLS, there have been 36 sales in 2008 YTD, with one being an REO/Foreclosure sale. This REO was left out of the charting below. South Point data is presented with the permission of GBRAR.

The first chart shows the relationship between sales prices and living area sizes. The living area size are at the bottom of the first chart.

The second chart shows the relationship between sold prices per sq. ft. and living area sizes. The sold prices per sq. ft. are at the bottom of the second chart.

Also, Here's a Recent South Point Homeowner's Assocation Update:

"In response to a request/suggestion made by a homeowner that attendance at the annual meeting would increase if the meeting was held on a weekend in lieu of a weekend evening, we are proposing that the 2009 Annual Meeting be scheduled for Saturday, January 10, 2009, at 10:00 - 11:00 a.m. Research is currently underway as to whether there are any major sports events on that date/time which may cause an attendance conflict for many homeowners. We would greatly appreciate everyone's feedback as to whether a weekend meeting is preferable. Please email your response indicating whether you prefer to attend a Saturday mid-morning meeting.

Please note: effective with the 2009 year (Bylaws, Amendment No. 8, Art. 4), the Board of Directors will be comprised of five members. Three of the current Board members will be retiring after serving their three year term. Therefore, two vacancies are open for election in 2009. If you are interested, please complete the attached Candidacy Notice. This form should be returned by the January 7, 2009 deadline in order that all nominees are included on the agenda and ballots. Should the date of January 10, 2009 change, the deadline date to return the Candidacy Notice will be changed accordingly. Please limit your response to this email with the question poised above. Emails on other concerns or subjects should be sent separately. Your cooperation is appreciated! Board of Directors
South Point Homeowner's Association, Inc.
P. O. Box 1496
Denham Springs, LA 70727-1496
225-610-9578
www.southpointsubdivision.com "