Category Archives: Market Analysis

Pelican Point Real Estate Market Analysis through August 2010

Pelican Point Real Estate Market Report

The data used in this report were extracted from the Greater Baton Rouge Association of Realtors MLS database on 9/2/2010 and represent home sales between 1/1/2005 and 8/30/2010. The data are presumed accurate but are not warranted.

I have good news and bad news to report about the Pelican Point real estate market. First the bad news… there are more homes on the market than the demand for them. The chart below shows that, overall, there is nearly a 12 month supply of existing homes based upon current absorption rates. For homes priced over $350K there is nearly a 2 year supply.

Pelican Point Real Estate Market Statistics

The next chart gives some cause for optimism. The rate of absorption for existing homes in 2010 shows some improvement over 2009. The absorption rate for new homes, however, is well below the peak of about 5 homes per month being sold in 2005 to about 1 every other month in 2010.

Pelican Point Real Estate Market Statistics

Another bit of good news is that existing homes appear to be holding values fairly well despite the imbalance in supply vs. demand. In 2010, home pricing (in terms of selling price per square foot of living area) has rebounded and, at $122.03/sq.ft., is well above what it was in the previous two years but has not yet recovered to the 2006 level.

Pelican Point Real Estate Market Statistics

As always, I appreciate hearing from readers and I welcome any comments or suggestions for improvement that you may offer.



©2010 by Don Stern – All Rights Reserved

(225)413-3634 phone (866)723-5477 fax

don@thehomevendor.com – email1312

www.TheHomeVendor.com www.DonAndAlishaStern.com

www.LiveAscension.com www.PelicanPointHomes.com

www.WaterfrontPropertyLA.com

Kenilworth Subdivision Market Report

East Baton Rouge Parish Real Estate Market Report – Kenilworth Subdivision

The data used in this report were extracted from the Greater Baton Rouge Association of Realtors MLS database on August 18, 2010. The data are presumed accurate but are not warranted.

I have been working with some clients who are considering moving from the Kenilworth subdivision to a more rural area. I extracted historical sales data as well as data for currently active listings to give them some idea of what their current home might ultimately sell for and how the competition in their subdivision is currently priced. The following chart looks at the history of the selling price per square foot of living area over time and how current listings are priced.

Baton Rouge Real Estate Market

We can see that recent sales have varied more than $40/sq.ft. from a bit less than $80/sq.ft. to a bit more than $120/sq.ft. There are currently four active listings in the subdivision. Three of the listings are priced between $103.75/sq.ft. and $109.76/sq.ft. and one is price at $88.88/sq.ft. Further investigation revealed that this home is part of an estate and there were no inside photos so one might suspect the condition of the interior.

The next chart shows that the average selling price in 2010 was $98.51/sq.ft., a drop of about 2% from the average selling price in 2009 and a drop of nearly 4% from the peak average of $102.46/sq.ft. achieved in 2007.

Baton Rouge Real Estate Market

The next chart show average selling prices in the subdivision and we observe a large increase from 2009 to 2010. Given that the $/sq.ft. declined, one can conclude that, on average, larger homes have sold in 2010 than sold in 2009.

Baton Rouge Real Estate Market

As always, I appreciate hearing from readers and I welcome any comments or suggestions for improvement that you may offer.



©2010 by Don Stern – All Rights Reserved

(225)413-3634 phone (866)723-5477 fax

don@thehomevendor.com – email1312

www.TheHomeVendor.com www.DonAndAlishaStern.com

www.LiveAscension.com www.PelicanPointHomes.com

www.WaterfrontPropertyLA.com

East Baton Rouge Parish Residential Real Estate Market Report – July 2010 Update

East Baton Rouge Parish Real Estate Market Report

The data used in this report were extracted from the Greater Baton Rouge Association of Realtors MLS database. Only data for detached single family (DSF) homes were used and represent sales through the end of July 2010. The data are presumed accurate but are not warranted.

The following two charts show unit sales (closings) for a given month separated by year. The first chart represents unit sales for new construction and the second represents unit sales of previously owned homes.

Baton Rouge Real Estate

Except for the month of May, unit sales of new construction in EBR parish was lower than in any of the previous five years. In the re-sale market segment the same held true except that April 2010 was slightly ahead of April 2009.

Baton Rouge Real Estate

The next chart illustrates the downward trend in home sales within the parish since 2006.

Baton Rouge Real Estate

Despite this softening in terms of unit sales, home values have been preserved as the next chart illustrates.

Baton Rouge Real Estate

We can see that the average price per square foot of living area has not dropped. In fact, it is higher than in any of the previous five years.

The next two charts show the absorption rates for new construction and previously owned homes for the years between 2005 and 2010 broken down by the price range of homes.

Baton Rouge Real Estate

We can see that, overall, there is a neutral market for new homes with a 6.5 month supply. During 2010, the highest velocity of home sales in the new home segment has been for homes priced between $200K and $300K. This price range has accounted for more than 50% of all new homes sold in the parish this year and in this range it is clearly a seller’s market. On the other hand, there is nearly a 2-year supply of new homes priced between $350K and $400K.

Baton Rouge Real Estate

In the re-sale market segment, it is a buyer’s market overall. It is a neutral market only for homes priced below $100K. The highest velocity of home sales occurs in this segment for homes priced between $100K and $200K.

As always, I appreciate hearing from readers and I welcome any comments or suggestions for improvement that you may offer.



©2010 by Don Stern – All Rights Reserved

(225)413-3634 phone (866)723-5477 fax

don@thehomevendor.com – email1312

www.TheHomeVendor.com www.DonAndAlishaStern.com

www.LiveAscension.com www.PelicanPointHomes.com

www.WaterfrontPropertyLA.com

Ascension Parish – July 2010 Sales Down & Contracts Up

Ascension Parish Real Estate Market Report

The data used in this report were extracted from the Greater Baton Rouge Association of Realtors MLS database. The data are presumed accurate but are not warranted.

There was a sharp drop in the number of closings (unit sales) in Ascension parish during July as the following chart illustrates. During June there were a total of 142 detached single family homes transferred while in July only 63 DSF homes transferred. This is a drop of more than 55%! Clearly a significant number of closings during the first half of 2010 were attributable to the Home Buyer Tax Credit.

Ascension Parish Real Estate

The next chart looks at new contracts negotiated for DSF homes during 2010. We can see that there was significant growth in the number of new contracts negotiated leading up to the April 30 deadline. Following that there was a significant drop in new contracts. While, as previously stated, there was a drop in the number of closings during July there was also a modest increase in the number of new contracts negotiated… from 85 in June to 96 in July, about a 13% increase. Improving but still a far cry from the 173 contracts negotiated in April.

Ascension Parish Real Estate

The stacked bars represent the number of contracts for each status code recorded as of 8/10 when the data were extracted. Contracts with a status of Withdrawn or Active represent contracts which have fallen through since originally written. Thankfully, that number is rather small. Pending and contingent contracts have not yet closed and, hopefully, represent future sales.

As always, I appreciate hearing from readers and I welcome any comments or suggestions for improvement that you may offer.



©2010 by Don Stern – All Rights Reserved

(225)413-3634 phone (866)723-5477 fax

don@thehomevendor.com – email1312

www.TheHomeVendor.com www.DonAndAlishaStern.com

www.LiveAscension.com www.PelicanPointHomes.com

www.WaterfrontPropertyLA.com

Tri-Parish 2010 Mid-year Home Sales by MLS Area

Tri-Parish Real Estate Market Report

The geography covered by the Greater Baton Rouge Association of Realtors has been segmented into numbered areas. These areas are depicted on the following map.

Greater Baton Rouge Home Sales 2010 mid-year

An analysis of detached single family sales during 2010 was done in the tri-parish region (Ascension, East Baton Rouge, and Livingston) and broken down by MLS area. The next chart provides the results of that analysis.

Greater Baton Rouge Home Sales 2010 mid-year

The chart illustrates that the highest dollar volumes were achieved in northern Ascension parish and in southern East Baton Rouge parish. Unit sales followed similar patterns except that the Livingston parish areas of 81 and 83 exhibited relatively high unit sales. Another statistic is worth noting… homes in area 61 had the highest median sales price of any of the MLS areas.

A similar analysis was done but included only new construction. That chart is below.

Greater Baton Rouge Home Sales 2010 mid-year

We can see that area 90 in Ascension parish far exceeded any other area in terms of both unit and dollar volume. Area 83 in Livingston parish came in second.

As always, I appreciate hearing from readers and I welcome any comments or suggestions for improvement that you may offer.


–Information on this report is not guaranteed. There is no express or implied warranty by MLS of the accuracy of information which should be independently verified.–
Copyright: 2010 by the Greater Baton Rouge Association of REALTORS® Multiple Listing Service
Prepared by STERN, DON of Coldwell Banker Mackey Ascn on Saturday, July 10, 2010 12:57 PM.

©2010 by Don Stern – All Rights Reserved

(225)413-3634 phone (866)723-5477 fax

don@thehomevendor.com – email1312

www.TheHomeVendor.com www.DonAndAlishaStern.com

www.LiveAscension.com www.PelicanPointHomes.com

www.WaterfrontPropertyLA.com

Ascension Parish Home Sales- Effects of Tax Credit Expiration

Ascension Parish Real Estate Market Report – Effects of Tax Credit Expiration

The data used in this report were extracted from the Greater Baton Rouge Association of Realtors MLS database. The data are presumed accurate but are not warranted. The data collected were for detached single family homes in Ascension parish which went under contract between January 1, 2010 and June 30, 2010.

In order to qualify for the $8,000 or $6,500 homebuyer tax credit, a homebuyer had to have an accepted contract in place on or before April 30, 2010. I wanted to quantify the impact of the expiration of that tax credit upon the real estate market in Ascension Parish. The expiration of the tax credit has, indeed, had a cooling effect on the market. Overall, there has been a drop of 36% in the average weekly number of accepted contracts since the expiration of the tax credit. The following chart illustrates that effect.

Ascension Parish Home Sales - Effects of Tax Credit Expiration

I separately calculated the effect for new construction and for re-sale homes. It appears that new construction benefited most from the tax credit. Since its expiration, the average number of new contracts per week dropped from 14.7/wk to 7.0 per week, a drop of 52%. For homes in the re-sale market segment, that drop was from 16.4/week to 13.0/wk or 21%.

The next chart plots the same data but shows the mix of new construction contracts vs. re-sale contracts as a percent of the total for a given week.

Ascension Parish Home Sales - Effects of Tax Credit Expiration

As always, I appreciate hearing from readers and I welcome any comments or suggestions for improvement that you may offer.



©2010 by Don Stern – All Rights Reserved

(225)413-3634 phone (866)723-5477 fax

don@thehomevendor.com – email1312

www.TheHomeVendor.com www.DonAndAlishaStern.com

www.LiveAscension.com www.PelicanPointHomes.com

www.WaterfrontPropertyLA.com

Ascension Parish Real Estate – Residential Market Analysis April 2010

Ascension Parish Real Estate Market Report

The data used in this report were extracted from the Greater Baton Rouge Association of Realtors MLS database and represent sales of detached single family homes from January 2005 through April 2010. The data are presumed accurate but are not warranted.

Unit sales in the parish were down a bit in April from unit sales in March. Both new construction and re-sale market segments were down. On the other hand, unit sales in April 2010 was higher in both segments than in April of 2009.

Ascension Real Estate

New construction unit sales in the period from January through April 2010 was higher than the same periods during 2008 and 2009. The re-sale segment for the January through April 2010 was higher than in 2009 but lower than in the years 2005 through 2008.

Ascension Real Estate

Overall $ sales volume was up. While volumes in 2006 and 2007 were higher, 2010 volumes were higher than in 2005, 2008 and 2009.

Ascension Real Estate

The average sales price of new construction continued to fall in the parish but the average sales price of previously owned homes during the first four months of the year was substantially higher than in any of the previous five years.

Ascension Real Estate

The average selling price per square foot of living area for new homes declined slightly as the trend toward smaller homes with fewer amenities continued. The price per square foot of living area for homes in the re-sale market segment increased slightly.

Ascension Real Estate

The last chart shows the history of $/sq.ft. between January 2005 and April 2010. One can see that in April 2010 there was virtually no difference between the new construction and re-sale segments. The last time that occured was in November of 2005 after which the selling price per square foot of living area for new construction rose substantially. It remains to be seen whether this event in April is significant.

Ascension Real Estate

As always, I appreciate hearing from readers and I welcome any comments or suggestions for improvement that you may offer.



©2010 by Don Stern – All Rights Reserved

(225)413-3634 phone (866)723-5477 fax

don@thehomevendor.com – email1312

www.TheHomeVendor.com www.DonAndAlishaStern.com

www.LiveAscension.com www.PelicanPointHomes.com

www.WaterfrontPropertyLA.com

Zachary, LA Real Estate Market Report – 1Q2010

Zachary Real Estate Market Report

The data used in this report were extracted from the Greater Baton Rouge Association of Realtors MLS database. The data are presumed accurate but are not warranted.

The data used represent sales of detached single family homes in Zachary, LA.

Unit sales of new construction in March dropped for the third consecutive month. The re-sale market segment, however, enjoyed an enormous increase in unit sales during March. A total of 17 previously owned homes sold in March and only 12 sold during January and February combined.

Zachary Home Sales

Most of the re-sales during March were in the $251K-$300K range although there were sales ranging from $53K to $520K. For the first quarter of 2010, the highest velocity of home sales in the new construction segment was in the $201K to $250K range. In the re-sale market segment the highest velocity of home sales was in the $251K-$300K range. At first quarter absorption rates there is an oversupply of homes. The new construction segment has a 7.5 month supply while the re-sale segment has a 10.6 month supply.

Zachary Home Sales

The average price per square foot of living area is, on average, higher for the first quarter of 2010 than the annual average for 2009. The re-sale segment, on the other hand, has seen a drop of about 6% during the first quarter from $109.37/sq.ft. to 102.88/sq.ft.

Zachary Home Sales

Looking at monthly trends, it appears that $/sq.ft. is trending upward for new construction, although we do observe a drop in the average for two consecutive months. If the absorption rate of new construction continues to drop off that will put downward pressure on pricing. In the re-sale segment, pricing weakness is observed. This is probably due to an oversupply of homes.

Zachary Home Sales

As always, I appreciate hearing from readers and I welcome any comments or suggestions for improvement that you may offer.



©2010 by Don Stern – All Rights Reserved

(225)413-3634 phone (866)723-5477 fax

don@thehomevendor.com – email1312

www.TheHomeVendor.com www.DonAndAlishaStern.com

www.LiveAscension.com www.PelicanPointHomes.com

www.WaterfrontPropertyLA.com

Livingston Parish Residential Real Estate Market Report – 1Q2010

Livingston Parish Real Estate Market Report – 1Q2010

The data used in this report were extracted from the Greater Baton Rouge Association of Realtors MLS database. The data are presumed accurate but are not warranted.

The data presented herein represent sales of detached single family homes in Livingston parish.

In previous blog posts, I shared how unit sales in Ascension parish were up in both new construction and re-sale market segments and that in EBR parish both segments were down in terms of unit sales. In Livingston parish, first quarter results for 2010 show an increase of more than 16% in unit sales in the new construction segment while the re-sale market segment dropped by almost 9%.

Baton Rouge Home Sales

Average home prices in both market segments also dropped.

Baton Rouge Home Sales

Looking at the average selling price per square foot of living area, it appears that the drop in new construction prices is due primarily to buyers purchasing smaller homes as the price per square foot has not changed appreciably. The drop in average re-sale home price, however, does seem to be related to a drop in the average $/sq.ft. price.

Baton Rouge Home Sales

We’ll continue to monitor the market trends and report back to readers.

As always, I appreciate hearing from readers and I welcome any comments or suggestions for improvement that you may offer.



©2010 by Don Stern – All Rights Reserved

(225)413-3634 phone (866)723-5477 fax

don@thehomevendor.com – email1312

www.TheHomeVendor.com www.DonAndAlishaStern.com

www.LiveAscension.com www.PelicanPointHomes.com

www.WaterfrontPropertyLA.com

East Baton Rouge Parish Residential Real Estate Market – 2010 1st Quarter Report

East Baton Rouge Parish Real Estate Market Report – 1Q2010

The data used in this report were extracted from the Greater Baton Rouge Association of Realtors MLS database. The data are presumed accurate but are not warranted.

The data presented herein represent sales of detached single family homes in East Baton Rouge parish.

2010 first quarter unit sales were disappointing and are lower than in any of the first quarter results for the previous five years.

Baton Rouge Home Sales

When projected through to the end of the year, without substantial increases during the peak selling months we can see that both new construction and re-sale market segments will fall far short even when compared to 2009 which, itself, was disappointing.

Baton Rouge Home Sales

The good news, however, is that home values have remained stable. The next chart shows that the average selling price per square foot of living area in the parish has remained relatively flat for the past few years. Homeowner equity has been preserved.

Baton Rouge Home Sales

If we look at average selling prices, we can see that the average price of a new home has declined. Given a steady price per square foot that indicates that new home buyers are purchasing smaller homes. The average price of a re-sale home, on the other hand, is currently higher than in any of the previous five years.

Baton Rouge Home Sales

Finally, if we look at inventory levels with respect to absorption rates in various price ranges we can see that a Seller’s Market exists for new construction priced between $200K and $300K in EBR parish. The highest velocity of new home sales during the first quarter of the year has been in the $251K-300K range with 7.3 homes per month being sold. As has been the case for some time, a severe oversupply of homes priced over $400K exists in both the new construction and previously owned market segments. With absorption rates of 2.3 and 13.7 homes per month, however, we can see that there still is a significant demand for high-end homes but not enough of a demand to balance with the supply.

Baton Rouge Home Sales

As always, I appreciate hearing from readers and I welcome any comments or suggestions for improvement that you may offer.



©2010 by Don Stern – All Rights Reserved

(225)413-3634 phone (866)723-5477 fax

don@thehomevendor.com – email1312

www.TheHomeVendor.com www.DonAndAlishaStern.com

www.LiveAscension.com www.PelicanPointHomes.com

www.WaterfrontPropertyLA.com