If I'm asked anything as a realtor, I'm asked what I think about what direction the local housing market is going in terms of value. My answer is always positive because from what I see in the market, the Baton Rouge metro area simply isn't feeling the pinch being experienced elsewhere in the nation.
The forecast for home prices going up in Baton Rouge is milder, though, at 4.1% when compared to other Louisiana markets. That's largely due to the fact that Baton Rouge home prices have rallied substantially ever since Katrina, perhaps in greater measure than the rest of the state. Click HERE to see a current forecast of the various Louisiana markets along with analysis.
People I talk to still have the jitters that the impact the housing market nationwide is going to create a domino effect for Baton Rouge. But the folks at HousingPredictor.com seem to think that the U.S. has already turned the corner on the softening housing market. According to that website:
The tide is turning and the worst may be over in the national housing market slowdown, according to the latest assessment by Housing Predictor. The real estate slowdown experienced in the majority of the U.S. is signaling a change.
Housing Predictor continually updates its more than 250 local housing market forecasts in all 50 states, and at least 18 states now have housing markets that are appreciating, many with increased sales volume as a result of lower prices than in 2006.
Overall 56% of the nation's housing markets are appreciating or have stabilized, according to the study. Ten states are experiencing markets that are stabilizing.
Just in cases you were wondering, Louisiana is indeed one of the 18 states in the nation with appreciating values. To see just what HousingPredictor.com is saying about the state of the nation's real estate market, click HERE.
Monday, July 2, 2007
Tuesday, June 26, 2007
Foreclosures in Louisiana?
When local folks read the national news about their declining real estate sales, they automatically assume what they read also applies to our own Baton Rouge market as well. I remember, several months ago, a friend of mine (having read articles in national magazines on the softening real estate market) hinted at his fear that we were on the verge of seeing a lot of foreclosures soon hitting the Baton Rouge market. Well, how is Louisiana faring in the number of foreclosures compared with the rest of the nation? Are thin
gs just as shaky here as they are in other regions which just over a year ago were HOT real estate markets?
Not at all! At least not when you consider the list of "hot" foreclosure markets in the U.S. In fact, not only is Baton Rouge holding its own against growing foreclosures nationwide, but the entire state of Louisiana is still going strong, thank you. The "Baton Rouge Business Report" reports it this way:
CNNMoney is out with a list of the 500 ZIP codes where the most U.S. foreclosures have come from during the current housing bust. Nearly 28% have come from California, according to the survey by RealtyTrac, and Florida was a distant second. There were 72 foreclosures in Florida during a three-month period that ended in the middle of this month. The hardest hit zip code was 44105, in a poor section of Cleveland, where there were 783 foreclosure filings. No Louisiana ZIP code was found on the list, which was dominated by rustbelt cities hurting from manufacturing downturns and sunbelt cities where home prices skyrocketed over the past few years.
Check out the complete list here.
gs just as shaky here as they are in other regions which just over a year ago were HOT real estate markets?Not at all! At least not when you consider the list of "hot" foreclosure markets in the U.S. In fact, not only is Baton Rouge holding its own against growing foreclosures nationwide, but the entire state of Louisiana is still going strong, thank you. The "Baton Rouge Business Report" reports it this way:
CNNMoney is out with a list of the 500 ZIP codes where the most U.S. foreclosures have come from during the current housing bust. Nearly 28% have come from California, according to the survey by RealtyTrac, and Florida was a distant second. There were 72 foreclosures in Florida during a three-month period that ended in the middle of this month. The hardest hit zip code was 44105, in a poor section of Cleveland, where there were 783 foreclosure filings. No Louisiana ZIP code was found on the list, which was dominated by rustbelt cities hurting from manufacturing downturns and sunbelt cities where home prices skyrocketed over the past few years.
Check out the complete list here.
Thursday, June 14, 2007
New Development for Perkins Road Overpass
If you're familiar with the Perkins Road Overpass area, you know the charm it offers. And Perkins Road Hardware was an icon of the community feel nearby residents enjoyed. That changed somewhat when that "institution" was gutted by fire in December.
That property has now been sold and will be redeveloped. The property will be a commercial and residential mixed use development. Two restaurants, one casual and one more upscale, have agreed to the idea of locating there with the potential of a third. In addition to the restaurants, the residential section will be a three-story condominum area boasting four or five units.
Local residents and shop owners are hopeful the new development will maintain the esthetic appeal already evident there.
That property has now been sold and will be redeveloped. The property will be a commercial and residential mixed use development. Two restaurants, one casual and one more upscale, have agreed to the idea of locating there with the potential of a third. In addition to the restaurants, the residential section will be a three-story condominum area boasting four or five units.
Local residents and shop owners are hopeful the new development will maintain the esthetic appeal already evident there.
Wednesday, June 13, 2007
News Bits in Various Sectors
Just a spot-check of real estate developments going on in our area:
LSU area. Two apartment complexes sold recently in the LSU vicinity. The 129-unit Fountainhead Apartments sold for $4.8 million and will remain as primarily student apartments. But 24-unit Cambridge Apartments--which sold for $2.1 million--will be converted to condos.
Mid-City. Right on Government Street just west of S. Foster Dr. is Vieux Carre a 74-unit condo conversion. Model units are set to open. 1-Bedroom units will sell for $75,000 while 2-bedroom units will go for $95,000. The development was formerly an apartment complex.
Watson. The potential development of a Wal-Mart at Hwy 16 and Cane Market Road is already causing land prices in that area to increase. D&D Investments just purchased a 4.9 acre tract to construct a self-storage facitily and paid $1.5 million, or just over $7 per square foot.
Bluebonnet. Mike Wampold announced yesterday that the unfinished Jimmy Swaggart dorm will become a Marriott Renaisssance hotel. The 348-room resort will include a 20,000 square-foot conference center, a restaurant operated by Dickie Brennan, and a state-of-the-art fitness center at a pricetag of $64 million.
Meanwhile, a public hearing was called by Metro Councilman, Pat Culbertson to discuss a proposed Wal-Mart Supercenter at Bluebonnet and Burbank and Pinnacle's plans for a casino resort further down at the river. The feedback from the meeting will be presented to the full Council and a propsal will be made to confine Pinnacle's plans to the downtown area.
LSU area. Two apartment complexes sold recently in the LSU vicinity. The 129-unit Fountainhead Apartments sold for $4.8 million and will remain as primarily student apartments. But 24-unit Cambridge Apartments--which sold for $2.1 million--will be converted to condos.
Mid-City. Right on Government Street just west of S. Foster Dr. is Vieux Carre a 74-unit condo conversion. Model units are set to open. 1-Bedroom units will sell for $75,000 while 2-bedroom units will go for $95,000. The development was formerly an apartment complex.
Watson. The potential development of a Wal-Mart at Hwy 16 and Cane Market Road is already causing land prices in that area to increase. D&D Investments just purchased a 4.9 acre tract to construct a self-storage facitily and paid $1.5 million, or just over $7 per square foot.
Bluebonnet. Mike Wampold announced yesterday that the unfinished Jimmy Swaggart dorm will become a Marriott Renaisssance hotel. The 348-room resort will include a 20,000 square-foot conference center, a restaurant operated by Dickie Brennan, and a state-of-the-art fitness center at a pricetag of $64 million.
Meanwhile, a public hearing was called by Metro Councilman, Pat Culbertson to discuss a proposed Wal-Mart Supercenter at Bluebonnet and Burbank and Pinnacle's plans for a casino resort further down at the river. The feedback from the meeting will be presented to the full Council and a propsal will be made to confine Pinnacle's plans to the downtown area.
Tuesday, May 22, 2007
Is Baton Rouge Still a Strong Real Estate Market?
Note--Due to technical problems, I've been unable to update my site since the original posting. Sorry for the delay in getting back to you all.
If you're like me, you've heard so MANY opinions about the current strength of the Baton Rouge real estate market. Or perhaps you're considering real estate investing but wonder if this is a good time to do that in our area. Most make the mistake of using national news sources about national statistics to come to a local conclusion.
So, the Baton Rouge Busisness Report recently offered a poll of its "Real Estate Weekly" readers to see what the concensus was on that issue. I thought you'd like to read what your local real estate "watchers" thought:
Poll: Most see housing market remaining strong
Most Real Estate Weekly readers say the Capital Area housing market will remain strong past the end of this decade. Thirty-nine percent of the people who responded to an online survey think the market will remain strong for another three years or more. Twenty-four percent think the market is slipping now, while 20% say home sales will stay on track for another year. Seventeen percent give the market another two years before it starts to dip. More than 250 people participated in the survey.
And here's another tidbit of news along those same lines. This indicates a "still strong" housing market for the Capital Area:
B.R. posts big jump in home prices: Home prices in metro Baton Rouge increased by 9.7% in the first quarter, according to figures released last week by the National Association of Realtors. The median existing single-family home in the Capital Region was $169,400, below the Southern average of $177,800. The only Southern cities to show bigger price increases during the first quarter were Cumberland, Md. (17.1%), Beaumont-Port Arthur, Texas (16.5%), Gulfport-Biloxi, Miss. (15.7%), Oklahoma City (12.1%) and San Antonio (11.2%).
This should serve as clear evidence that regardless what you may hear on national media concerning real estate nationwide, Baton Rouge is certainly its own market!
If you're like me, you've heard so MANY opinions about the current strength of the Baton Rouge real estate market. Or perhaps you're considering real estate investing but wonder if this is a good time to do that in our area. Most make the mistake of using national news sources about national statistics to come to a local conclusion.
So, the Baton Rouge Busisness Report recently offered a poll of its "Real Estate Weekly" readers to see what the concensus was on that issue. I thought you'd like to read what your local real estate "watchers" thought:
Poll: Most see housing market remaining strong
Most Real Estate Weekly readers say the Capital Area housing market will remain strong past the end of this decade. Thirty-nine percent of the people who responded to an online survey think the market will remain strong for another three years or more. Twenty-four percent think the market is slipping now, while 20% say home sales will stay on track for another year. Seventeen percent give the market another two years before it starts to dip. More than 250 people participated in the survey.
And here's another tidbit of news along those same lines. This indicates a "still strong" housing market for the Capital Area:
B.R. posts big jump in home prices: Home prices in metro Baton Rouge increased by 9.7% in the first quarter, according to figures released last week by the National Association of Realtors. The median existing single-family home in the Capital Region was $169,400, below the Southern average of $177,800. The only Southern cities to show bigger price increases during the first quarter were Cumberland, Md. (17.1%), Beaumont-Port Arthur, Texas (16.5%), Gulfport-Biloxi, Miss. (15.7%), Oklahoma City (12.1%) and San Antonio (11.2%).
This should serve as clear evidence that regardless what you may hear on national media concerning real estate nationwide, Baton Rouge is certainly its own market!
Friday, January 19, 2007
Well, the numbers are in from the Greater Baton Rouge Association of Realtors’ Multiple Listing Service (MLS) service, as reported in the 1/19/07 issue of the Baton Rouge Business Report.
2006 was the second best year for the eight-parish area, but down 3% from 2005 home sales. Home sales that year were fueled, of course, by Hurricane Katrina. Last year saw a total of 11,007 homes sold in the Capital Region compared to 11,346 sold in 2005. However total home value for 2006 topped $2 billion, nearly 10% more than the $1.8 billion value of homes in 2005.
The Business Report goes on to say that Baton Rouge home values will increase in 2007 by an estimated 4.1%. New Orleans home values will increase by 8.4% in response to the limited housing options there, while Monroe expects to see a gain of 5.9%. Monroe…hmm, go figure.
But check this out…remodeling existing properties. Remodeling fell to 2,496 in 2006 from 2,803 in 2005…BUT last year’s work cost more…a LOT more! While 2005’s improvements cost $196 million, the cost of 2006’s renovations mushroomed 61% to $316 million!! A clear testimonial to the rising cost of labor and building materials.
2006 was the second best year for the eight-parish area, but down 3% from 2005 home sales. Home sales that year were fueled, of course, by Hurricane Katrina. Last year saw a total of 11,007 homes sold in the Capital Region compared to 11,346 sold in 2005. However total home value for 2006 topped $2 billion, nearly 10% more than the $1.8 billion value of homes in 2005.
The Business Report goes on to say that Baton Rouge home values will increase in 2007 by an estimated 4.1%. New Orleans home values will increase by 8.4% in response to the limited housing options there, while Monroe expects to see a gain of 5.9%. Monroe…hmm, go figure.
But check this out…remodeling existing properties. Remodeling fell to 2,496 in 2006 from 2,803 in 2005…BUT last year’s work cost more…a LOT more! While 2005’s improvements cost $196 million, the cost of 2006’s renovations mushroomed 61% to $316 million!! A clear testimonial to the rising cost of labor and building materials.
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