Real Estate Information

Last week I had to spend some time downtown at meetings.  One of my meetings took me to the Governor's Mansion - a great porch to rock away some time!  Don't miss an opportunity to visit the Governor's home!  If you would like to take a tour of the Governor's Mansion, call Mrs. Bobbie Johnson at 225-342-5855

Another meeting took me to the Louisiana State Capitol.  You know, in all the years I have lived here I have not really spend any real time visiting this art deco masterpiece!  From the history with the bullet holes from Huey Long's death to watching the legislators in session - there is plenty to admire in this building.

And last, but certainly not least, one of my favorite buildings in all of Baton Rouge, the one Mark Twain called the ugliest building, is the Old State Capitol.  I love the stained glass windows! The Old Louisiana State Capitol, a National Historic Landmark, is located in downtown Baton Rouge, next to the Mississippi River at 100 North Blvd. and currently houses the Old State Capitol Museum of Political History, which contains several state of the art exhibits. The Center is open Tuesday-Saturday, 9:00am to 4:00pm. Admission to the museum is free.​

Next time you can't think of any thing to do just take a trip downtown and explore the area like a tourist would.  You'll be proud to call Baton Rouge home!!!

With spring here in all its bounty, it's time to renew, refresh and revive our understanding of what's fueling the ongoing real estate market recovery in the Greater Baton Rouge Area.   First, tightened inventory levels combined with strong demand are fueling price gains in many areas. Second, consumer demand is shifting from distressed properties to conventional homes.   Third, record-low mortgage rates and rising rents are supporting housing recovery.   Let's check the local scene.  New Listings in Greater Baton Rouge increased 0.4 percent to 1,197.   Pending Sales were up 34.5 percent to 971.   Inventory levels shrank 15.5 percent to 3,890 units. Prices moved higher. The Median Sales Price increased 6.3 percent to $168,548.   Days on Market was down 9.7 percent to 93 days.  Absorption rates improved as Months Supply of Inventory was down 26.9 percent to 5.7 months.  On the economic front, things inched forward. We saw a minor but important upward revision to Q4-2012 GDP growth that put us back in positive territory.   In the political arena, key debates over the deficit, marriage, gun law, immigration reform and tax policy rage onward.   The squeaky wheel gets the grease, and with this emerging housing recovery, there are no imminent housing-related bills. Perhaps that's a good thing.

Here's the scoop on closed home sales for the first quarter of 2013:

Note the months supply of inventory is declining:

Note the list to sales price ratio:

All indicators show the our real estate market is off to a great start for 2013!  

Want some help interpreting the data?  Call the Pat Wattam Team today!  

225-298-6900.

Have some more fun this Saturday, April 20, 2013 at some art shows around town where I will be showing my paintings.  First, the Baton Rouge Art League will host their Invitational Art Show at the Burden Rural Life Museum from 4-6 p.m.  This is a painting I have in that show:

Then come on over to N the Art Space at the Settlement at Bocage on Jefferson Hwy across from Bocage Subdivision and next to Regions Bank.  Over 30 artists will have their studios open so you can browse and purchase paintings, jewelry, photographs and more!  We will also have live entertainment too. I'll be hosting my studio from 5-8 p.m.  Come enjoy my art and support your local artists!!

Join the Pat Wattam Team this Saturday and Sunday at Nation Wide Open House Weekend! All across the country hundreds of homes will be open.  What a great time for potential home buyers to get out and see what their dollar will buy!

We have been saying for the past couple of years that NOW is the time to buy.  Take a look at this chart showing interest rates since the 1800's.

Next, take a look at the past 20 years of interest rates

Seriously, rates are still under 4%.  This is why it's a great time not only to purchase your first home, but if you have thought about making a move to a bigger, dream home in the next couple of years, do it now while rates are low and prices haven't skyrocketed!

And, yes, it can definitely be cheaper to own than rent, depending on your location.

So come on our this weekend and join us.  

Check out homes available for Open House both Saturday and Sunday at www.GBRAR.com.

Charts compliments of Leslie Lovett of SWBC Mortgage.

Yes, the King is alive!!  If you are looking for some fun this weekend, take in the Broadway show, Elvis Lives, at the Baton Rouge River Center Theater this Sunday, April 14th.  Elvis Lives, The Ultimate Elvis Tribute Artist Event is an unforgettable multi-media and live musical journey across Elvis' life. His iconic style embraced by many of today's artists, continues to entertain audiences of all generations!

Join me there for a Rockin' good time!

We know that 2012 was another banner year for the Greater Baton Rouge Real Estate Market.  Taking a look at the first quarter of this year, we see that trend continuing.  As I have mentioned in earlier posts, one of the main things to watch is the months supply of inventory.  We have been averaging around an 8 month supply for the past year, with that dipping in the summer months.  However, when we compare March of 2012 to March of 2011, we see that trend starting now.  In March last year we had a 6.9 month supply of homes for sale.  This March we dropped to only 5.31 month supply.  

What does this mean to our consumers?  When the months supply of inventory drops below 6 months, you start moving into what we call a 'sellers' market - which means that homes are selling faster, there are fewer choices for buyers, and you can receive multiple offers on the really good homes- the ones priced right and in the best condition.  It also means, for buyers, that the days of making low ball offers on homes and expecting the seller to take it have disappeared.  For sellers, we are waiting to see if prices start ticking upward.  

The real estate market in our Greater Baton Rouge area typically will increase in price from 1-3% annually - a pretty flat market.  This has helped us stay out of the real estate bubble, for the most part, and hopefully that will continue and our market will remain healthy!!

Just met with 3 new sellers this week - one is an estate so the heirs really didn't know the condition of the home; one is a resale - pretty new home, inspected 4 years ago when purchased; and one is a custom built home that is about 12 years old.  I always suggest sellers have their home pre-inspected before going on the market so that we don't have any surprises when the buyer has the Inspection (part of the purchase agreement).  As I am sure you expect, the estate house had a few items that needed to be taken care of - including a leaking AC Coil that is less than 2 years old plus the types of things I expect to get in a house of this age - wiring in the attic not in conduits, etc.  Not too bad.  The 4 year old home had foundation work done but never followed up on the cracked stucco.  Any buyer would be fearful of this so getting that piece inspected will give the buyer peace of mind.  And last, the 12 year old home, that is beautiful, has 16 double paned windows with broken seals - better to know that now and get some bids to get the work done instead of having a buyer ask for that - after negotiating a price on the house.  I can not say it enough, get the house pre-inspected before putting it on the market!! 

Prepare your home for sale!

The annual Brush with Burden Art Show opens Saturday, March 2, with an opening reception from 3-6 p.m. at the Orangerie at the Burden Rural Life off Essen Lane in Baton Rouge.  Over 100 artists works will be displayed including sculpture, paintings, and photography.  Come on out and enjoy some good food and art works including the one below by Pat Wattam!

Buying a home, whether it's your first or your fifth, can be a daunting task.  It is one of your biggest financial investments.  With all the news the past 5 years about the housing bubble, and so many people losing money on their home, buying a home may not sound like a good financial investment.  But guess what?  Those people who bought at the top of the market and did not HAVE to sell the past 5 years, they are now starting to be in a position to be able sell in many areas and not lose money.  Owning a house is more secure than owning stocks.  Why?  Because a house is something tangible - you can touch it, you can improve it, you can live in it and enjoy your life - or you can use it as a rental vehicle to create wealth for you - it doesn't just do ONE thing.   

One of the main questions we are asked is how to minimize risk when purchasing a home.  Here in the Greater Baton Rouge Real Estate market we have a long history in our Multiple List tools which allows us, as REALTORS,  to look at the history of a subdivision or an area.  Some areas did not lose any value during the past 5 years, some gained value, and others did lose.  When the Pat Wattam Team does a buyer consultation, we explore where you want to buy a home and why that area is important to you.  We can show you statistics on how that area has performed so that you can make a good buying decision.  I own a beach condo in Orange Beach, AL.  I bought it at the top of the market.  It is now worth less than half of what I paid for it.  But does that matter to me.  Well, of course it does!  But seriously, my note on the mortgage is what I agreed to.  I love going there to visit and it brings me great joy.  Nothing has changed for me, except that if I wanted to sell or refinance, the value has declined.  Owning a home, as I said, is more than just a financial investment.  It truly is a way of life - how you want to live everyday.  What it the ONE thing a house MUST have in order for you to purchase it?  I'll bet it has nothing to do with price per sq ft but more with how you want to live.  

So, here are my tips on buying a house:

1.  Choose an agent who has your best interests at heart.  That doesn't mean getting you a home at a fantastic price but someone who helps you find a home that fits in with your vision of your life in a home.

2.  Get fully approved prior to purchasing.  This can save you thousands of dollars during negotiation.  Every buyer typically gets 'pre-approved' but we all know that means nothing.  The lender has to actually verify your credit, your job, your assets, your tax returns - then you KNOW that your approval letter will mean something to a seller and they may be willing to give a little more knowing that your loan is definitely going to close.  CHOOSE you lender carefully.  You are much better off working with a local institution who will see you as a persona and help you through the process.  We know lots of very reliable lenders and we're happy to share their names with you.  Just give us a call.

3.  When picking out a house, if you only plan to be in it in a couple of years, you need to buy what is traditional for the area.  Don't buy the largest house or smallest house in the subdivision, don't buy one that has a different style than the others - all this will help you maintain your equity.  If you plan to stay 10 or rmore years, buy whatever you want!

4.  When you find a home and you are ready to make an offer, make a serious offer with a serious deposit. Show the seller that you have money and that you are ready to go.  Make the seller an attractive offer with a strong approval letter and see if you can get them to accept!

5.  Have the home inspected by a licensed professional inspector.  They can find things that your dad, or brother, uncle, or cousin may or may not be able to find.  And remember, a home Inspection is not a laundry list to the seller to make the home just like a brand new one; rather, it is to address issues that you could not see with your eye - cracked heat exchangers, bad roof, broken rafter, termites, etc.

6.  Plan ahead for the move and start getting ready by boxing things in each room, clearly labeled.  If you are making a local move and hiring local movers, they charge by the house.  Plan ahead of time on where you want them to place your furniture.  There is nothing worse than letting the clock keep ticking and you try to decide where they should unload the boxes or the furniture!

7.  ENJOY your new home!

I am sure that many of you have some other suggestions for buyers.  Please make the comments here to share with everybody!