Real Estate Information Archive

Everybody is curious about what has really happened to the Greater Baton Rouge Real Estate Market since Katrina.  Those of you who have been reading my blog for years will remember that prior to hurricane Katrina in 2004, the average sales price for our MLS area was $144,000 with 8789 sales for the year.  The following year the average sales price had increased to $164,592 by the end of the year, with a total of 11,349 homes closed.  Now, if you go month by month it is even more interesting!  In August 2005, just before Katrina hit, there were 811 homes closed that month.  In September that number more than doubled with 1838 closings and then in October, 1374 homes closed!  It was an absolutely crazy time in real estate and it was a very difficult time for all Realtors.  It wasn't just the number of sales we were making, but it was how you had to work.  Think about this - no MLS - no phone service - you didn't know what homes had sold and what homes had come on the market.  You couldn't get from point A to point B easily.  And then you would work so hard for the client, for them to decide not to buy here but to go someplace else, or they lucked out and found a rental.  I much prefer the market we have today to what we experienced then!

The good news is that although our home prices peaked in 2008, and then we had the economic disaster which slowed home sales, our prices have only dropped to an average sales price of $193,000 YTD - which is up a little from last year.  Sure, fewer homes are being sold and there is plenty of inventory, but the fact that the days on market have only gone up about 15 days (the length of time on average it takes to sell a property) since 2004 and the fact that the average sales price is STILL significantly higher than 2004, leads me to believe that our real estate market is still healthy.

At the Pat Wattam Team, we have experienced multiple offers on properties that were well priced and in tip top condition, and the homes that meet that criteria, even though they may not have multiple offers, will generally sell in the first 30 days.  Homes that need some updating or repairs, even when priced well, tend to take a while to sell. 

Here's hoping for no more hurricanes, for our industry to continue to lead the country out of recession, and for our own market to remain stable so that all my clients can take advantage of these fabulous interest rates!!

Year  Ave Sales Price   # Sold

With mortgage interest rates at an all time low, at least since I have been in real estate, now truly is the time to buy a home, move up to your dream home, refinance your home, or buy that investment property!!   A 30 year fixed rate home mortgage is running about 4.25%.  On a $200,000 loan, that would be a principle and interest of approximately $893.88 - compare that to $1104.01 with a 5.5% rate!  That's a savings of over $100 a month!!  Or, think of it this way, you can buy a home that costs $5000 more!! 

Of course, home mortgages are credit score driven and the higher your credit score the more options you have open to you.  The 15 year interest rate is the one that got me really excited....it's at 3.75% which is terribly exciting when you think only 7 years ago the 15 year rate was 5.25%.

Not sure where to start? Give the Pat Wattam Team a call and we'll help you sort out how to take advantate of this market.  With more homes to choose from, we know you can find something that will make you want to take advantage of this great real estate market!

Not that it's any big news, but the first of the boomers are beginning to retire.  Many of them are choosing to retire to a nearby recreational area - someplace where they can be close to family, and a metropolitan area, but also a place where they get to kick back and enjoy the life they have worked so hard for! 

As beach front, lake front, and other water front properties dwindles in numbers, these boomers will search out other places that offer a great view!  Perhaps that is why Arkansas and N Carolina are doing so well!  The trend shows that boomers are starting to purchase homes in areas they have vacationed in for years, and perhaps even own a second home but now want to move there permanently.

Have you wondered where you would enjoy having a second home or retiring?  Check out www.bestplaces.net.  Fill out a questionaire and see what part of the country will help you select what part of the country to move to for that life of your dreams!

At the Louisiana Realtors Meeting last week, the speaker discussed the changing real estate market around the country.  As agents and companies around the country were polled, it was discovered that although sales in some areas are off, that overall, housing prices are still on an upward trend!!!  The media hype over the 'real estate bubble'  causes buyers to pause, waiting for the prices to drop significantly - and while waiting, the interest rate can rise, and the house they really want, but want to wait until the price comes down, as they are told it must, will sell to someone else!!

It's interesting how the media can make a story, even when there isn't one there.  The first thing that comes to my mind is the Millennium and all the doomsday predictions!!  Of course, I chose to head to Hawaii, because if all the power were to go out, and all kinds of computers crash, I figured what better place to be than Hawaii!!  Oh, then I remember back to 1974 when we had the 'gas shortage' and years later we find out that that wasn't the truth either - but maybe we can't blame that on the media!

The only way to know what the real estate market is doing is to take a look at historic trends.  If you look back over the past 20 years, the ONLY time there was a real housing downturn all around the country was during the energy crises in the '80's.   The rest of the graph is a steady growth, with a few dips here and there, but still heading up - much like the stocks!

Have you ever wondered what it would be like to own a vacation home?  Someplace to spend a relaxing weekend.  We bought our first vacation property about 2 years ago - a condo on the Diversion Canal.   looked at it as a great investment and now it's a place we really call home!  Because it is so close to home, we tend to go there many weekends.  This was unexpected - I always thought if we bought a vacation home it would be far away - someplace to take us away from it all.   I find that a lot of us really enjoy a water view and there are so many options for us around Baton Rouge.  I don't own a boat but love to go for rides when invited.  My favorite part is reading a book in a comfy chair on our balcony overlooking the water.  It's so peaceful and serene. 

In Baton Rouge we can go to False River, or the Tickfaw, or the Diversion Canal...so many choices and so many different price ranges.  Another place that would have also been fun would be a little place in the woods around St Francisville - a historic town where you can go hiking, or take nice drives out into the country side.  When some people had to evacuate to our area after Katrina and wanted to buy something, they decided to find a little vacation place out in the woods noth of here, a place that they would be able to continue to enjoy even after they rebuild back in New Orleans.

Dream a little bit!  With interest rates still hovering around 6%, this is a great time to take the next step.  A place for you to recharge your spirit, or a place that your grand children will want to visit often...a place for you to create memories to last a lifetime!

As we said in the 60's - Live for Today! 

It has been very interesting to watch the Greater Baton Rouge Market since hurricane Katrina.  If we look back to 2004 here is what the market looked like:

2004      Ave Sales Price $147,251       #Homes closed  8278       Days on Market      81

2005                                     $168,605                                      9935                                          76

2006                                     $190,198                                       9531                                           62

As most of the country experiences a slow down in the real estate market, our economy continues to thrive.  The higest increase is still in homes under $200,000.  The higher the price, the slower the market.  New construction continues to strongly affect our market.  With interest rates low, bond money available, our market should continue on this course for some time.  It is definitely a great time to buy or sell!

That said, the houses that are not selling are the ones that are over priced or not in top condition.  A lot of the buyers are using 100% financing, even in the higher priced homes, and don't have any money to update or do repairs to homes.  So, just like before hurricane Katrina, the homes that are in the best condition and priced well will sell. 

For a Computerized Market Analysis of your home, go to www.HomeValuesBatonRouge.com.