My last blog entry dealt with the state of the real estate market in Livingston Parish as of the end of 2008. This post deals with the state of the market in East Baton Rouge 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 East Baton Rouge 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.
The previous chart illustrates the vast difference in both the median and average home prices between new construction and existing home sales. It is also interesting to note that both the least expensive and the most expensive home sold were in the re-sale market segment.
The average selling price of new construction continued to climb in the parish, rising about 10% between 2007 and 2008. The average selling price of an existing home, on the other hand, remained about the same. The good news is that prices haven't fallen as in other areas of the country.
Unit sales, however, fell in both market segments and continues to trend downward. While new construction sales were off for most of the year, sales of pre-existing homes didn't suffer until both the meltdown of the financial market and the impact of Hurricane Gustav. With low interest rates, the first time home-buyers incentive and the general good health of the area I anticipate improvements in this market segment.
The highest velocity of new home sales occured for homes selling between $150K and $300K and in this range a seller's market exists. Overall, however, it is a buyers market with 7.3 months supply. This is due in large measure to the oversupply of homes priced over $400K. In this category there is more than a year's supply of homes at the 2008 average absorption rate.
For pre-existing homes, it is either a sellers or neutral market until home prices exceed $350K where there is more inventory than demand and it is a buyer's market.
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
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
Livingston Parish, like Ascension and East Baton Rouge parishes, was negatively effected by hurricane Gustav. Unit sales fell dramatically during September. The following chart illustrates the impact of Gustav upon unit sales in Livingston Parish.
Home have also remained a good investment in Livingston Parish. The following chart shows that average prices in the new home market segment increased during 2008 and homes in the re-sale segment held their values. This is a far different situation than we are seeing in some other areas of the country where the bubble has burst, foreclosures are up and prices have fallen. We will continue to closely monitor prices in our area as the country makes its way through the current economic crisis.
The following set of charts shows absorption rates for the past five years as compared with 2008 and relates that rate to current inventory levels.
Sales of new homes remains depressed compared with prior years. Home sales in the re-sale market segment have settled back to pre-Katrina levels. In the re-sale segment, inventories in the highest velocity price ranges (below $200K) are either in balance or insufficient to meet the demands of the marketplace. Over $200K it rapidly becomes a Buyer's market where supply exceeds the demand.
The preceding analysis was based upon data extracted from the Greater Baton Rouge Association of Realtors MLS system. The information contained herein is presumed to be accurate but is not warranted.
As always, I welcome readers to visit my websites at www.TheHomeVendor.com or www.LiveAscension.com or www.DonAndAlishaStern.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
As previously reported for Ascension Parish, Hurricane Gustav did not impact the Greater Baton Rouge Real Estate Market like Hurricane Katrina did in 2005. In fact, it had the opposite effect. With massive power outages effecting the Greater Baton Rouge area the sales of detached single family homes plummeted during September. The following chart illustrates the impact of Gustav upon unit sales in East Baton Rouge Parish.
Home have remained a good investment in East Baton Rouge Parish. The following chart shows that average prices in the new home market segment increased during 2008 and homes in the re-sale segment held their values. This is a far different situation than we are seeing in some other areas of the country where the bubble has burst, foreclosures are up and prices have fallen. We will continue to closely monitor prices in our area as the country makes its way through the current economic crisis.
The following set of charts shows absorption rates for the past five years as compared with 2008 and relates that rate to current inventory levels.
Sales of new homes remains depressed compared with prior years. Unit sales in the re-sale market segment are also down. The good news is that overall inventory is more or less balanced. In fact, in the lower price ranges it remains a Seller's market overall.
The preceding analysis was based upon data extracted from the Greater Baton Rouge Association of Realtors MLS system. The information contained herein is presumed to be accurate but is not warranted.
As always, I welcome readers to visit my websites at www.TheHomeVendor.com or www.LiveAscension.com or www.DonAndAlishaStern.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
Hurricane Gustav did not impact the Greater Baton Rouge Real Estate Market like Hurricane Katrina did in 2005. In fact, it had the opposite effect. With massive power outages effecting the Greater Baton Rouge area the sales of detached single family homes plummeted during September. The following chart illustrates the impact of Gustav upon unit sales in Ascension Parish.
We live in interesting times. It will be interesting to see whether unit sales will rebound in October because, in addition to the effect that Gustav had on our local market, we are faced with the current financial crisis on a national level and the resultant limited availability of credit. Thus far, however, our area has not been affected as strongly as other areas of the country. In fact, the following chart illustrates that average home values in the parish have held at 2007 levels thus far during 2008.
The following set of charts shows absorption rates for the past five years as compared with 2008 and relates that rate to current inventory levels.
Sales of new homes remains depressed compared with prior years. The re-sale market has, however, remained relatively strong. While the surge in demand created by Hurricane Katrina is certainly finished, previously owned homes are still selling at pre-Katrina rates. In fact, it is a Seller's market for homes selling below $200K. It is, however, clearly a Buyer's market for homes in this segment that are priced above $300K.
The preceding analysis was based upon data extracted from the Greater Baton Rouge Association of Realtors MLS system. The information contained herein is presumed to be accurate but is not warranted.
As always, I welcome readers to visit my websites at www.TheHomeVendor.com or www.LiveAscension.com or www.DonAndAlishaStern.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
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