Real Estate Information

I just returned from two back to back real estate conferences held in Orlando, Florida.  The first was my CyberStars group and the next was the Star Power Conference (for heavy hitters!).  Since the conference was held in Florida we got to hear first hand on what is really happening in Florida.  Some agents are just trying to cover their bills, others have cut way back on their teams and marketing, others told stories about top Realtors losing their homes, and then, you have a group that is actually thriving in the market.  This was not unique to Florida.  I also, surprisingly, heard it from Realtors in North and South Carolina, as well as New Jersey.  The general consensus from both groups was that they have another year to weather this downturn, then they will expect a slow rise over the next couple of years to get them back to where their markets were in 2003/2004. 

I find this interesting because here in the Greater Baton  Rouge Real Estate Market, we have been defining the health of our real estate market based on a comparison of today's sales to sales of 2004 - to make sure we are not facing what a large part of this country is facing.  Even though our average sales price is certainly higher than it was in 2004, the rest of our stats, days on market and list to sales price ratio, are pretty much the same as in 2004 (end of the year stats). 

Some lessons learned at the conference were that we should all, not just Realtors, become savers!!  When times are uncertain, cash is king!  Secondly, even in those depressed markets it is a great time to buy!  Why, you might wonder?  Well, you may take a loss on the home you are selling, but you will be able to make that move up to your dream home, which will now be at a price that makes it greatly affordable - the one that you could never have afforded just 2 years ago!!!  And, when the market makes the upturn, your new home will appreciate even more!!

The second important item is that we all expect interest rates to rise after the presidential election, no matter who wins.  How much, who knows?  But with rates in the 6-7% range, this is truly still an exceptional time to enjoy buying and selling homes.

Once again our market is humming right along!  The three main parishes that the Pat Wattam Team routinely covers are East Baton Rouge Real Estate Sales, Ascension parish  home sales, and Livingston parish home sales.  We do cover West Baton Rouge and if anyone would like those stats, just let me know. 

So for the 1st half of the year, here are the 3 parishes averages:

Number of homes currently on the market:       4601

Average List Price:                                               $210,904

Average Sales Price:                                           $205,405

Average Days on Market:                                          89

Average List to Sales Price Ratio:                          96.87%

Pretty impressive numbers!!!  Because of the amount of inventory we have seen the days on market get longer, but not appreciably - it has been pretty consistent this whole year!

With all the great economic news about our area, I think The Greater Baton Rouge Real Estate Market will continue to thrive.

Wow!  The real estate market is really heating up and it is reflected in the fluctuation mortgage rates!  Did you see rates dipped below 6% AGAIN yesterday!!!  Yeah, they bumped back up to 6% by days end, but this is a FABULOUS time to be buying a home - or even an investment property.  AND are you aware you can buy a brand NEW home in Baton Rouge for around $150,000?!!!!  Check out my Listings at http://www.patwattamteam.com/properties.asp?navpage=3&  for several homes in different areas in the $150's!!

Think you can't get a home loan???  Think again! Money IS Available.  We are seeing people use FHA Loans again since they are more flexible with debt to income ratios, credit scores, and down payment.  We still have bond money with 4% assistance for closing costs or downpayment.  If you have a high enough credit score, you can still obtain a 100% loan!  Some things you need to know:

1.  YOu need to have stable employment of at least two years, with sufficient income to cover the monthly mortgage payment and living expenses, adequate savings to make your downpayment, and a FICO credit score of at least 620 (the higher the better but this is a good place to start to see what you qualify for0.

2.  Many mortgage products are available to suit all types of buyers and not every lender offers the same programs or has the same investors.  It really pays to shop your mortgage before you look for housing.  Get fully credit approved and then you will be a stronger buyer when presenting an offer.  If one lender turns you down, check out another.  We will gladly refer you to several lenders who can be of assistance.

3.  Affordability has improved!  During the Katrina years it was difficult to find good housing under $150,000.  Now we have a nice supply.  Call me today and we'll get you started.  Whether you want to show East Baton Rouge, West Baton Rouge, Ascension, or Livingston, we'll help you find the right property!!

Spring is just around the corner and the buyers are out there buzzing around looking at homes!  Interest rates are fluctuating between 5.75 and 6.25 for 30 year fixed.  We do have some new guidelines coming down from Freddie Mac and Fannie Mae - where investors bundle loans together to sell them - which is greatly going to affect the borrowing power this spring.  For credit scores under 680 the buyer may have to pay as high as 1.75% extra to get the loan.  We are highly encouraging the buyers to get preapproved for their loan so they know exactly how much money they are going to need to close.

On a positive note, we have excellent inventory for buyers to choose from and we have some new subdivisions that will soon be on line targeting the first time homebuyer - priced in the mid $100's. 

An interesting statistic about our market is that we have consistently seen over the years an average list to sales price ration of around 98%!!!  Of course, each house and subdivison will have factors that make that figure higher or lower, but on AVERAGE, 98% is an awesome figure!! 

Our average sales price is still over $200,000 and holding!  If you are thinking about selling or buying, we have several resources to make it easier for you.  Sign up for automated home searches or to get an electronic Market Analysis here at www.PatWattamTeam.com!

A recent newspaper headline in Baton Rouge read:  "Forecloosure become trend in home sales", leading a casual observer to think, without reading the article, that Baton Rouge is full of foreclosed properties.  When people think of foreclosed properties they think about buying their dream home for half price.  Well, if you live in California and can afford to pay $600,000 for a property once worth $1Million, that could be true! However, in Baton Rouge, the MAJORITY of foreclosed properties, few as they are, are not the dream house you have been waiting for!  According to the article, as well as my own research through our multiple listing system, we have about 1.5-2% of homes on the market that are bank owned.  Not exactly what the headlines lead you to believe!!!

The good news in the Greater Baton Rouge Real Estate Market is that we have a stable real estate market,  excellent mortgage interest rates and lots of loan products that make home ownership affordable, and a good supply of properties to choose from.  Check here often as we start to showcase the new construction coming on line under $150,000!!!!

Who would have thought we would see these rates again!  We are getting quotes of 5% for 30 year fixed loans and 4.75 for 15 year!!!!  There are a lot of mortgage products out there - most are credit score driven for the best rates but even if your score isn't the best, with rates these low you will be able to secure an excellent rate and buy a house now! 

Although the Greater Baton Rouge Real Estate market hasn't experienced the downturn of some of the major cities around the country, we still have a very affordable market.  Take advantage of these interest rates and it's like getting your home at a reduced price!!! 

Also, those of you considering buying a 2nd home/vacaiton property on the Gulf Coast, don't forget my company there, Go Realty, can help you take advantage of THAT real estate market!  Prices there are incredibly low and as we all know, as soon as those late spring/summer rentals start coming in, the sellers aren't nearly as motivated to sell.  It is a wonderful opportunity to buy that 2nd home and we have lenders there who are offering 100% financing to Professionals (to see if you qualify for what they term 'Professionals' just send me an email and I'll check it out with them).

No matter where you want to buy, call us today and see what we can do for you!

As I have suspected this year, the Baton Rouge Market that we mainly service, has trended back to the market we had prior to Katrina - not following the trends of rest of the country!!!  Baton Rouge has been named as one of teh 10 best cities for it's continued growth and affordable pricing - along with Austin, TX.  As our real estate market remains strong, you will notice more homes on the market, and perhaps we will see longer days until a house goes under contract as buyers have more properties to choose from.  What we have not seen is a decrease price.  It has been predicted that Katrina will fuel our market for 5 years - and then the business growth that Baton Rouge and surrounding areas have experienced with continue to sustain and drive our real estate market.  It's an exciting time to be in Baton Rouge!!

So, here are the stats for the past 4 years for East Baton Rouge, Ascension, and Livingston parishes.

Year       Homes Closed            Average Sales Price                  Days on Market    List/Sale Price%

2007          8818                               $196799                                         70                                97.99

2006        10316                               $187058                                         65                                98.22

2005        10700                               $165957                                         77                               98.42

2004          8278                               $145251                                        82                                98.14

As 2007 came to an end, and the new year started so gloriously with a beautiful, yet cold, day, it was heartening to read the comments from the leaders from various businesses in Baton Rouge today with their outlook on our economy.  Many, not only ones associated with home sales or building, mentioned that we aren't having the same problems as many communities in the US are, and Baton Rouge continues to thrive.  Many mentioned that we have settled back to pre-Katrina times, and yet if you look around our city and surrounding areas, we see everywhere that we definitely are not pre-Katrina in traffic, in the way our downtown looks and feels, and in the many new companies we see here!!! 

As soon as all the closings are turned into MLS I will post the end of year stats here for you to check out. Then we can compare the past year and see where are real estate market actually finished the year.