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

2004 $143,976 8,789
2005 $164,592 11,349
2006 $185,970 11,056
2007 $196,813 9,508
2008 $201,511 7,363
2009 $191,252 6,919
2010 $193,000 YTD 4,387 YTD