Don's Blog

East Baton Rouge Parish, LA: September 2009 Residential Real Estate Market Update

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Thu, 15 Oct 2009 15:18:43 -0500

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. The data are presumed accurate but are not warranted.

Sales of homes in the new construction and re-sale market segments are down a bit from the previous month but that is probably just the effect of seasonality that we historically observe.

Unit sales of homes in both market segments are expected to be lower in 2009 than in any of the previous five years.

The average selling price is down slightly in both market segments but that is due to a shift toward more affordable homes.

We can see that the average price per square foot of living area is up slightly in both market segments indicating that home values have not diminished and owner equity has remained relatively constant.

The next two charts examine absorption rates for new construction and for the re-sale market segments. We can see that overall, new construction has a 5.4 month supply of inventory given the year to date average absorption rate. The re-sale market segment has a 5.5 month supply. Segmenting this information further by price range, we can see that with respect to new construction, it is a seller's market for all price ranges below $350K. (Below $100K a 54 month supply shows. This I believe, is anomolous because homes in this price range just came onto the market and weren't available for most of the year leading to the low absorption rate of 0.1 homes/month.) The supply of homes priced over $350K exceeds the demand. In these price ranges there is about a years supply. While there is over 10-months supply of new homes priced over $400K, at 6 homes sold per month more than 15% of homes sold in the parish are in this price range.

In the re-sale market segment, nearly 80% of all homes sold in the parish are priced below $250K. The highest velocity of home sales is for homes priced between $151K and $200K. Over 17-months supply exists for homes priced over $400K.

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

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

don@thehomevendor.com - email

www.TheHomeVendor.com www.DonAndAlishaStern.com

www.LiveAscension.com www.PelicanPointHomes.com

www.WaterfrontPropertyLA.com

Ascension Parish, LA Real Estate - Market Update for September 2009

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Sun, 11 Oct 2009 15:03:06 -0500

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.

As 2009 comes to a close the real estate market in Ascension Parish is continuing to resist the gloom haunting other markets in the country and is, in fact, showing signs of growth. The following chart shows monthly unit sales for the past several years. For September 2009, sales of previously owned homes exceeded sales in that market segment in both July and August of this year and approached sales in June 2009 which was the highest so far this year. While new construction unit sales didn't perform as well as the previously owned market segment for September 2009, it significantly outperformed new construction sales in September 2008. This is not surprising since both the new and re-sale market segments were hard hit by the devastation caused by hurricane Gustav last year. That said, new construction unit sales last month outperformed all other months in 2008 except for the month of July.

Using the average absorption rates observed so far this year, unit sales of the new construction market segment is projected to exceed 2008 levels. Unit sales for the re-sale market segment is projected to be only slightly less than that of 2008. Clearly, while less robust than the boom post-Katrina times, the real estate market in Ascension parish is showing remarkable signs of health despite the current difficulties we face in acquiring credit.

The next two charts show historical trends of average selling price and average selling price per square foot for both market segments.

We can see that in the resale market segment, neither the average price nor the average price per sq.ft. have changed substantially from 2008 levels. This indicates that the equity in our residential real estate investment has weathered the economic downturn quite well. In the new construction segment, however, we see a downward shift toward more affordable housing... a trend previously reported on toward smaller homes with fewer upgrades and amenities.

The next two charts show the absorption rates and inventory levels for the two market segments. In the new construction segment, there is only a 3.3 month supply of new homes overall. This is a Seller's Market. A Buyer's Market condition exists only for homes priced over $400K. The highest velocity of home sales exists in the $150K-$250K price range which accounts for 65% of all new homes sold this year.

The previously owned market segment shows the highest velocity of sales in the same $150K-$250K price range which accounts for 51% of home sales. In fact, home sales under $250K accounted for 73% of all homes sold. Overall, it is a neutral market with 6.4 months supply but there is a great variation in this figure as we look at various price ranges. Previously owned homes over $400K have sold at a rate of 1.6 homes per month. With 60 homes on the market, at this rate it will take more than three years so sell off this inventory. At the other end of the spectrum, homes priced under $250K are enjoying robust sales and it is a Seller's Market in these price ranges.

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

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

don@thehomevendor.com - email

www.TheHomeVendor.com www.DonAndAlishaStern.com

www.LiveAscension.com www.PelicanPointHomes.com

www.WaterfrontPropertyLA.com

Waterfront Getaway on Three Rivers Island

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Thu, 08 Oct 2009 14:17:09 -0500

Don Stern | Coldwell Banker Mackey Co. | (225) 413-3624 / (225) 647-880

21132 Diversion Canal, Maurepas, LA

Waterfront Getaway

3BR/2BA Single Family House

offered at $174,900

Year Built	2004
Sq Footage	1,158
Bedrooms	3
Bathrooms	2 full, 0 partial
Floors	1
Parking	Unspecified
Lot Size	5,375 sqft
HOA/Maint	$25 per month

DESCRIPTION

Waterfront Jewel!! This home is loaded with amenities and features so you can enjoy the privacy and benefits of waterfront living in style. What a great first or second home or investment income property.

see additional photos below

PROPERTY FEATURES

- Central A/C

- Central heat

- High/Vaulted ceiling

COMMUNITY FEATURES

- Swimming pool(s)

OTHER SPECIAL FEATURES

- Golf Cart Access

ADDITIONAL PHOTOS

Waterfront Living

Views from Oversized Deck

Contact info:

Don Stern

Coldwell Banker Mackey Co.

(225) 413-3624 / (225) 647-880

For sale by agent/broker

Equal Opportunity Housing

Posted: Oct 8, 2009, 10:47am PDT

Baton Rouge Metro Area Real Estate Statistics

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Tue, 06 Oct 2009 15:36:33 -0500

Baton Rouge Metro Area Real Estate Market Report

With seventy five percent of 2009 in the past, I took a snapshot of sales for detached single family homes in the nine parish Greater Baton Rouge Metro area. In addition to segmenting the data by parish, I also separated new construction from re-sale or previously owned homes. The data were extracted from the Greater Baton Rouge Association of Realtors MLS database. The data are presumed accurate but are not warranted.

The next three charts show unit sales, average selling price and average selling price/sq.ft. for new construction in each of the nine parishes for each year since 2004. Unit sales in 2009 are projected by assuming the same absorption rates for the remainder of 2009.

New Construction

In terms of unit sales we can see that in 2009 new construction is up significantly in Ascension parish, up a little in Livingston and West Baton Rouge parishes, and down or zero in all remaining parishes.

In general, we can see a drop in the average selling price of newly constructed homes.

The average selling price/sq.ft. in Ascension has been significantly lower in 2009 when compared to 2008. This reflects a shift toward more affordable new construction in Ascension. In East Baton Rouge and Livingston parishes, where there were significant levels of new construction sales, the selling price/sq.ft. was maintained at similar levels. In West Baton Rouge Parish, the average selling price/sq.ft. actually increased.

Previously Owned Homes

The next three charts show unit sales, average selling price and average selling price/sq.ft. for previously owned homes.

Unit sales for this market segment have remained relatively steady in 2009 as compared to 2008.

If one looks at both the average price and average price/sq.ft. charts for re-sale homes, we can see that, in general, home values are holding. While our 401Ks may have suffered, the equity we have in our homes may not have appreciated but neither have they lost much, if any, value.

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

(225)413-3634 phone (225)313-3698 fax

don@thehomevendor.com - email

www.TheHomeVendor.com www.DonAndAlishaStern.com www.LiveAscension.com www.PelicanPointHomes.com www.WaterfrontPropertyLA.com

Maurepas, LA - Three Rivers Island Cottgage

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Fri, 11 Sep 2009 12:13:30 -0500

Don Stern | Coldwell Banker Mackey Co. | (225) 413-3624

21136 Diversion Canal Rd, Maurepas, LA

Three Rivers Island cottage with water view and waterfront access

2BR/2BA Single Family House

offered at $123,000

Year Built	2006
Sq Footage	954
Bedrooms	2
Bathrooms	2 full, 0 partial
Floors	1
Parking	None
Lot Size	6,625 sqft
HOA/Maint	$25 per month

DESCRIPTION

This cottage features wide-open living area with outstanding views. Watch the boats go by on the Diversion Canal from your 24 x 8 porch. Private tranquil island with golf cart access from the parking area. Community pool on the island.

see additional photos below

PROPERTY FEATURES

- Central A/C	- Central heat	- High/Vaulted ceiling
- Living room	- Dishwasher	- Laundry area - inside

COMMUNITY FEATURES

- Swimming pool(s)

ADDITIONAL PHOTOS

Photo 1	Photo 2
Photo 3	Photo 4
Photo 5	Photo 6

Contact info:

Don Stern

Coldwell Banker Mackey Co.

(225) 413-3624

For sale by agent/broker

Equal Opportunity Housing

Posted: Sep 11, 2009, 8:57am PDT

Ascension Parish, LA Real Estate - Market Update for August 2009

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Tue, 08 Sep 2009 12:23:22 -0500

Ascension Parish Real Estate Market Report

Through August 2009

The following analysis is based upon data extracted from the Greater Baton Rouge Association of Realtors MLS database. Only data for detached single family (DSF) dwellings were considered.

Two thirds of the way through 2009, the market for homes in Ascension parish is quite healthy. My own experience and conversations with other real estate professionals point to finance as the biggest obstacle in the way of further market expansion. That said, our market is, for the most part, vibrant and has weathered the national economic downturn quite well.

The first four charts below present unit sales information in a variety of ways. The first chart plots unit sales of new homes and previously owned homes on a monthly basis since January 1, 2004. The light green line shows overall monthly sales while the heavy green line shows the six month moving average.

The next chart aggregates the data by year and, for 2009, the a simple linear projection is made of what 2009 year-end sales will be. Year-to-date sales through August were calculated then divided by 8 months to get the monthly average and then multiplied by 12 to project year-end unit sales. This chart shows that, overall, 2009 should outperform 2008 with 1217 sales versus 1116 in 2008. New construction sales are responsible for the increase with a projected 491 sales versus 359 in 2008. Sales of previously owned homes are projected to be a bit less in 2009, 726 in 2009 versus 757 in 2008.

The next two charts illustrate monthly sales. The first shows new construction and we see that, as has been typical throughout the year, sales of new construction in 2009 has outperformed the same month in 2008.

The next two charts illustrate the absorption of homes in Ascension Parish by price range and compares absorption rates to current inventory to project the months supply of inventory. A market with 5.5 to 6.5 months supply is generally considered a neutral market... The supply and demand are reasonably balanced. A market with less than 5.5 months supply is generally considered to be a Seller's Market while a market with more than 6.5 months supply is said to be a Buyer's Market.

The first chart shows the absorption statistics for new construction. Overall, we have a Seller's Market condition with only 3.4 month supply. In fact, only homes priced over $350K are experiencing a Buyer's Market. The highest velocity of new home sales is for homes priced between $150K and $200K. Forty percent of all new homes sold in the parish during 2009 have been in this price range.

In the previously owned market segment, there is overall a 6.7 month supply... just slightly in Buyer's Market territory. Upon closer examination, however, we can see that this is due to an oversupply of more expensive homes. Homes priced over $300K account for 34% of the inventory but only 14% of home sales. Homes priced below $300K are generally moving well with respect to inventory.

As always comments and/or suggestions for improvements are welcomed.

(225)413-3634 phone (225)313-3698 fax

don@thehomevendor.com - email

www.TheHomeVendor.com www.DonAndAlishaStern.com www.LiveAscension.com www.PelicanPointHomes.com www.WaterfrontPropertyLA.com

What's to Become of Spanish Lake

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Sat, 29 Aug 2009 13:39:49 -0500

Ascension Parish - Spanish Lake

An article in the August 10th issue of the Baton Rouge Businees Report discussed the competing interests of the owners of Alligator Bayou Tours and companies that sell wetland mitigation credits to support development. The article goes on to tell of two pending lawsuits in the parish regarding the basin.

I've taken my grandchildren on the Alligator Bayou tour have thoroughly enjoyed the experience. As a Realtor®, I have also benefited from development so I have mixed emotions over the controversy.

Spanish Lake, Ascension Parish

Alligator Bayou Resident

(225)413-3634 phone (225)313-3698 fax

don@thehomevendor.com - email

www.TheHomeVendor.com www.DonAndAlishaStern.com www.LiveAscension.com www.PelicanPointHomes.com www.WaterfrontPropertyLA.com

Greater Baton Rouge Area Foreclosures Analysis

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Sun, 23 Aug 2009 13:34:08 -0500

Greater Baton Rouge Foreclosures Analysis

1/1/2004 through 8/23/2009

Recently, there have been a number of articles in the media about the rising number of foreclosures. Indeed, three of the real estate transactions that I am currently working myself are for bank owned properties. Unlike some other areas of the country, the Greater Baton Rouge real estate market has not seen a dramatic drop in home prices which is common for areas with an increasing number of bank foreclosures. I was thinking about this apparent contradiction on the way home from church this morning and decided to do some analysis.

I extracted a subset of data from the Greater Baton Rouge Association of Realtors MLS system. That subset included Residential properties (homes) which were identified as REO (Real Estate Owned or Bank Owned) properties which were listed between January 1, 2004 and August 23, 2009. In my opinion, some interesting things came out of my analysis. I created two charts both shown below. The first shows the number of bank foreclosures listed in the MLS over the time period examined.

In the period between 1/1/2004 and 5/31/2005, an average of about 116 bank owned properties were listed each month. Since 6/1/2005 that average dropped to 68 homes per month. Other observations are that in May of 2005 the number of bank owned listings spiked to 216. In the months after Hurricane Katrina the number of foreclosed homes listed dropped substantially. I would hypothesize that, after Katrina, the demand for housing was so high that people were able to sell their homes prior to being foreclosed upon. The rate of bank owned listings being added to the system has remained lower than that observed prior to June 2005.

The second chart examines the same data set but further restricts it to just those REO properties in the Tri-Parish Area (Ascension, East Baton Rouge, and Livingston Parishes.)

It appears to this author like all three parishes follow the same overall trends. Ascension and Livingston see foreclosure listings added at about the same rate. The anomalous spike in May 2005 was less pronounced in Ascension than in either Livingston or East Baton Rouge Parishes.

In conclusion, I would venture the opinion that foreclosures have not had the impact upon home prices in our area that other areas of our country have seen. Furthermore, since the rate of foreclosed listings remains low, I would not expect additional downward pressure on prices directly due to foreclosures. I do believe that downward pressure in our area is do more to the indirect effect that national foreclosures have had upon the availability of credit.

I would be very interested to hear different interpretations of these observations and would welcome comments.

(225)413-3634 phone (225)313-3698 fax

don@thehomevendor.com - email

www.TheHomeVendor.com www.DonAndAlishaStern.com www.LiveAscension.com www.PelicanPointHomes.com www.WaterfrontPropertyLA.com

Baton Rouge, LA - Tri-Parish New Construction Market Report

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Wed, 19 Aug 2009 14:01:57 -0500

Tri-Parish New Construction Real Estate Market Report

Through July 2009

This post deals with new construction in the tri-parish (Ascension, East Baton Rouge, and Livingston) area. The data used for this report were extracted from the Greater Baton Rouge Association of Realtors MLS database. Only data relating to detached single family (DSF) homes were extracted. For sales data new construction data were identified as those records having a status of New, Under Construction or Proposed Construction. Current inventory for new construction included only those records having a status of New or Under Construction.

Looking at the next three charts we can see the average selling price per square foot of living area for each of the three parishes. In 2009, new construction in Ascension parish sold for an average of $114.87/sq.ft. which is down 4.6% from 2008 where the price per square foot peaked at $120.37/sq.ft. In East Baton Rouge parish new construction sold for $130.25/sq.ft. in 2009 which is up $1.05 from sales in 2008. Livingston parish saw a modest decline in the price of new construction of $0.48/sq.ft. from a high of $105.05/sq.ft. in 2008 to $104.57/sq.ft. in 2009. A statistically negligible decline.

Ascension Parish New Construction Pricing

>
East Baton Rouge Parish New Construction Pricing

>
Livingston Parish New Construction Pricing

The next three charts show the new construction breakdown in each of the three parishes by subdivision.

Ascension Parish Top Selling Subdivisions

East Baton Rouge Parish Top Selling Subdivisions

Livingston Parish Top Selling Subdivisions

Looking at these three charts we can see that, while the type of home sold in the parish has shifted toward one costing less per square foot, Ascension Parish was home to three of the top five selling subdivisions in terms of unit sales. The top five subdivisions were as follows:

Parish	Subdivision	2009 Unit Sales
Ascension	Pecan Ridge	34
East Baton Rogue	Lakes at Jamestown	33
Ascension	Keystone of Galvez	26
Ascension	Gateway Cove	21
Livingston	Lake at Grays Creek	21

Anyone wishing to discuss this analysis in more detail or to request additional analyses are encouraged to contact me. Additionally, I welcome any comments or suggestions for improvement.

(225)413-3634 phone (225)313-3698 fax

don@thehomevendor.com - email

www.TheHomeVendor.com www.DonAndAlishaStern.com www.LiveAscension.com www.PelicanPointHomes.com www.WaterfrontPropertyLA.com

38528 LA Hwy 74, Gonzales, LA - Affordable Home Available

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Thu, 06 Aug 2009 08:10:11 -0500

Don Stern | Coldwell Banker Mackey Co. | (225) 413-3624

38528 LA Hwy 74, Gonzales, LA

Starter Home or Investment Property

3BR/2BA Single Family House

offered at $149,900

Year Built	2004
Sq Footage	1,231
Bedrooms	3
Bathrooms	2 full, 0 partial
Floors	1
Parking	Unspecified
Lot Size	11,250 sqft
HOA/Maint	$0 per month

DESCRIPTION

Five years young, this Acadian style home is perfect as a starter home or as an investment property. Bedrooms and living room have wood laminate floors and the wet areas have ceramic tile flooring. Ceramic tile countertops in the kitchen. Lots of cabinet space and stainless appliances in this eat-in kitchen.

see additional photos below

PROPERTY FEATURES

- Central A/C	- Central heat	- Walk-in closet
- Hardwood floor	- Tile floor	- Living room
- Dishwasher	- Stainless steel appliances	- Laundry area - inside
- Yard

ADDITIONAL PHOTOS

Front	Master Bedroom
Back	Living room
Kitchen	Kitchen

Contact info:

Don Stern

Coldwell Banker Mackey Co.

(225) 413-3624

For sale by agent/broker

Equal Opportunity Housing

Posted: Aug 6, 2009, 4:48am PDT

Springfield, LA - Terry Harbor Waterfront Property

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Fri, 24 Jul 2009 15:04:47 -0500

Don Stern | Coldwell Banker Mackey Co. | (225) 413-3624

32529 Rainy Ln, Springfield, LA

Waterfront Property in Terry Harbor

2BR/2BA Single Family House

offered at $364,900

Year Built	1990
Sq Footage	2,665
Bedrooms	2
Bathrooms	2 full, 0 partial
Floors	1
Parking	Unspecified
Lot Size	0.258 acres
HOA/Maint	$0 per month

DESCRIPTION

Fabulous waterfront home on a canal just yards away from the Tickfaw River. Open floorplan with updated kitchen and a huge den with a wall of windows overlooking the water. Extra large master bedroom with french doors leading out to the sunroom with spectacular water views. This one is perfect for a New Orleans resident (40 minutes away) looking for a second home or for retirees who want to fulfill the dream of living on the water.

see additional photos below

PROPERTY FEATURES

• Central A/C	• Central heat	• Fireplace
• High/Vaulted ceiling	• Walk-in closet	• Hardwood floor
• Tile floor	• Family room	• Living room
• Dining room	• Dishwasher	• Stove/Oven
• Microwave	• Granite countertop	• Stainless steel appliances
• Laundry area - inside

OTHER SPECIAL FEATURES

• Boat Dock

• Waterfront

• Sunroom

• Enormous Master Bedroom

ADDITIONAL PHOTOS

Front	Courtyard
Den	Den
Kitchen	Master Bedroom

Contact info:

Don Stern

Coldwell Banker Mackey Co.

(225) 413-3624

For sale by agent/broker

Equal Opportunity Housing

Posted: Jul 24, 2009, 11:40am PDT

East Baton Rouge Parish Residential Real Estate Market 2009 Mid-year Report

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Mon, 13 Jul 2009 16:32:40 -0500

East Baton Rouge Parish Real Estate Market

2009 Mid-year Report

This mid-year report is the result of my analysis of data retrieved from the Greater Baton Rouge Association of Realtors MLS database. Only data relating to detached single family (DSF) homes were included. None of the townhome sales were included in this analysis as they represent a different product. As I have done in the past, I made a distinction between new construction and previously owned (re-sale) homes.

Seasonality continues to impact unit sales in the parish as we observe an overall increase in unit sales for June. The increase, however, is due to an increase in the sales of previously owned homes. New construction sales actually declined from thirty nine sales in May to thirty six sales in June.

Overall unit sales in both market segments are projected to be at five year lows. The following chart illustrates this observation.

The next chart illustrates a significant decline in the average selling price of a new home in the parish. The average selling price per square foot of living area for a new home remained stable which means that the drop in home prices is attributable to the fact that in 2009 smaller homes have been purchased. Prices of previously owned homes have remained relatively flat between 2008 and 2009.

Overall, there is a 5.6 month supply of new construction in the parish that conventional wisdom terms a neutral market (5.5-6.5 months supply.) Looking at different price ranges, as in the following chart, we see that a seller's market (

Comments and suggestions are encouraged. Readers wishing to have a more in-depth discussion welcome to contact me directly.

(225)413-3634 phone (225)313-3698 fax

don@thehomevendor.com - email

www.TheHomeVendor.com www.DonAndAlishaStern.com www.LiveAscension.com www.PelicanPointHomes.com www.WaterfrontPropertyLA.com

Pelican Point Real Estate Market Analysis - 2009 Mid-year Report

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Sun, 12 Jul 2009 15:56:41 -0500

Pelican Point Real Estate Market Report

2009 Mid-year Report

While the projected overall unit sales in Pelican Point are down from 2008, we can see improvement in new construction units sold. Sales of previously owned homes are down from last year but, at current absorption rates, will be ahead of sales in the pre-Katrina year of 2004. The following chart illustrates this point.

Overall, previously owned homes in the subdivision have held their value. The average price per square foot of living area has held at $121.56/sq.ft. This is about even with 2008 sales but down from the selling prices in the years immediately following hurricane Katrina. At $121.56, however, homes are selling well ahead of pre-Katrina prices. Homes in Pelican Point are diverse but, in general, similar homes are on a given street. For that reason, I've analyzed the re-sale data by looking at sales by street. The following chart shows selling $/sq.ft. and unit sales by street.

The next chart again shows that re-sale prices have held steady between 2008 and 2009. New construction prices, however, have declined a bit from the high seen in 2008 but have remained higher than the average $/sq.ft. for the years 2004-2007.

Fewer than 2 homes per month are being sold in the re-sale market segment. With 29 homes currently listed, it is clearly a buyer's market. At current absorption rates there is a 15.8 month supply as the next chart illustrates.

The new construction segment has a 9.6 month supply at the current absorption rate of 0.8 homes per month. Drilling down through price range, one can see that so far this year no homes over $400K have been sold yet there are four available. I would encourage builders to refrain from building homes in this price range until the market for them rebounds.

Comments and suggestions are encouraged. Readers wishing to have a more in-depth discussion welcome to contact me directly.

(225)413-3634 phone (225)313-3698 fax

don@thehomevendor.com - email

www.TheHomeVendor.com www.DonAndAlishaStern.com www.LiveAscension.com www.PelicanPointHomes.com www.WaterfrontPropertyLA.com

Ascension Parish, LA Real Estate - 2009 Mid-year Market Report

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Thu, 09 Jul 2009 13:35:22 -0500

Ascension Parish Real Estate Market Report

2009 Mid-year Report

This mid-year report is the result of my analysis of data retrieved from the Greater Baton Rouge Association of Realtors MLS database. Only data relating to detached single family (DSF) homes were included. As I have done in the past, a distinction was made between new construction and previously owned (re-sale) homes.

Unit sales have continued to improved as indicated by the next chart. Sales of new construction are projected in 2009 to exceed sales of new construction in 2008. While recent improvements have been observed, home sales in the re-sale market segment are lagging behind those in 2008 but have rebounded to pre-Katrina levels.

The following chart tracks unit sales of new construction by month and year. One can see that new construction sales in 2009 have exceeded those in 2008 for every month so far this year.

While off to a slow start, previously owned home sales during June of this year exceeded those of June in 2008 and for every month except May exceeded the corresponding month in 2004.

Through June, we can see in the following chart that the average price of previously owned homes sold in the parish have not declined. The average price of a new home sold, however, has seen a substantial drop.

The explanation for this drop in the average price of a new home sold is made clear in the following chart which shows new construction sales by subdivision. Only the top 12 subdivision are shown but these twelve account for nearly 60% of home sales. It is evident that most new home sales were in subdivisions where homes with a limited number of floor plans and a generally lower standard of amenities than we have seen in years past are built.

We have been selling through the inventory of new construction in the parish. The following chart shows that, overall, there is only a 3.8 month supply of new homes... a seller's market overall. Looking at absorption data by price range we can see that a seller's market condition (less than 5.5 month supply) exists for all price ranges up to $400K. The absorption rate and inventory levels of homes selling for $400K and up, on the other hand, result in a serious buyer's market with more than a 20-month supply.

In the re-sale market segment there is, overall, a 6.4 month supply... a neutral market. Drilling down through the data, we can see that a seller's market condition exists for homes selling up to $200K. Over $200K, a buyer's market condition exists and for previously owned homes selling for more than $400K there are more than 3 years worth of inventory at current the current absorption rate.

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Comments and suggestions are encouraged. Readers wishing to have a more in-depth discussion welcome to contact me directly.

(225)413-3634 phone (225)313-3698 fax

don@thehomevendor.com - email

www.TheHomeVendor.com www.DonAndAlishaStern.com www.LiveAscension.com www.PelicanPointHomes.com www.WaterfrontPropertyLA.com

East Baton Rouge Parish, LA: May 2009 Residential Real Estate Market Update

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Sun, 14 Jun 2009 14:27:48 -0500

East Baton Rouge Parish Residential Real Estate Market Analysis - May 2009

The information presented in this post is based upon data extracted from the Greater Baton Rouge Association of Realtors MLS database. For the purposes of my analysis, I included data for detached single family dwellings which sold in East Baton Rouge parish for the years 2004 through May 2009. I identified the home sales as either New Construction or Re-Sale because, in my experience, they have distinct characteristics.

Although seasonality effects are obvious, overall unit sales in the parish have been trending downward since hurricane Katrina as the following chart illustrates. Currently, unit sales volume for both new construction and for previously owned homes are at 5-year lows.

Looking specifically, at May unit sales for 2009 and for the previous five years we can see that homes in both market segments are at historic lows, at least for the five year period examined.

A simple linear calculation of unit sales through the end of 2009 projects that new construction will be down nearly 8% while previously owned new homes will be down by about 12%.

The next chart illustrates that the average price of a previously owned home sold during 2009 is 6.5% lower than in 2008. New construction prices are also down buy by a more modest 3.5%.

Overall the supply of homes is more or less balanced by the demand. Based upon the average absorption rate of homes during 2009, there is a six-month supply making it a neutral market. If one looks at different price ranges, however, different conclusions can be drawn. A sellers market condition exists for homes priced below $250K while a buyers market condition exists for homes priced over $300K. For homes priced over $400K there is more than a 20-month supply based upon the average absorption rate for 2009.

Readers are encouraged to comment with questions or suggestions for improvement. Anyone interested in exploring the possibility of buying or selling property is welcomed to call or e-mail me.

(225)413-3634 phone (225)313-3698 fax

don@thehomevendor.com - email

www.TheHomeVendor.com www.DonAndAlishaStern.com
www.LiveAscension.com www.PelicanPointHomes.com
www.WaterfrontPropertyLA.com

Ascension Parish, LA Real Estate - Market Update for May 2009

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Fri, 12 Jun 2009 11:07:25 -0500

Ascension Parish Residential Real Estate Market Analysis - May 2009

The information presented in this post is based upon data extracted from the Greater Baton Rouge Association of Realtors MLS database. For the purposes of my analysis, I included data for detached single family dwellings which sold in Ascension parish for the years 2004 through May 2009. I identified the home sales as either New Construction or Re-Sale because, in my experience, they have distinct characteristics.

The real estate news in Ascension parish is mixed but, in my opinion, generally good news. As the following chart illustrates, seasonality is taking effect as we move toward the historically favorable summer selling months. Unit sales of previously owned homes, although lower than last year are at levels similar to pre-Katrina levels.

Average home prices have declined as the next chart illustrates. With respect to new home prices, the drop is due primarily to a shift in what is being purchased rather than a drop in value. More affordable homes are being purchased. The most successful subdivisions are those which offer a limited number of floor plans with a lower standard of amenities than was the trend a just a few years back.

the average price of a previously owned home has receded somewhat but only about 2-4%.

Although lower than the years immediately before and after Katrina, unit sales of new homes is improving. In fact, every month in 2009 saw more new homes sold than in every corresponding month of 2008.

The next chart illustrates the price point of new homes sold during 2009. We can see a dense cluster of homes sold between about $160K and $215K which were priced at or below $110/sq.ft. of living area. A significant number of homes were also sold at higher prices and price points but the drop in average price and average price per square foot illustrates the trend toward more affordable homes.

The really good news in the new home market is that inventories are being sold out. We previously reported that at the end of 2008 there was an 8.2 month supply of new homes in the parish. As the following chart illustrates, that has dropped to 4.2 months as of the end of May. It is a seller's market condition in most price ranges. The only area of deep concern is for homes priced at $400K and up where there is a 20 month supply. While there are five fewer homes in inventory today (20) than there were at the end of 2008, the rate of sales for these homes has dropped significantly from 2.3 homes per month in 2008 to only 1 per month on average during 2009.

The re-sale (previously owned homes) market statistics are similar to what was observed at the end of 2008. At that time we reported 385 homes available representing a 6.1 month supply at the average absorption rate for 2008. As of the end of May, we have 361 homes available representing a 6.5 month supply at the average absorption rate for 2009. Fewer homes per month are being sold but, as we saw earlier, we are just entering the peak selling season.

There is an oversupply situation with respect to the higher priced homes. In fact, at current absorption rates there is more than a four year supply of homes priced at $400K and above.

Readers are encouraged to comment with questions or suggestions for improvement. Anyone interested in exploring the possibility of buying or selling property is welcomed to call or e-mail me.

(225)413-3634 phone (225)313-3698 fax

don@thehomevendor.com - email

www.TheHomeVendor.com www.DonAndAlishaStern.com
www.LiveAscension.com www.PelicanPointHomes.com
www.WaterfrontPropertyLA.com

Livingston Parish, LA - Residential Real Estate Market Update February 2009

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Thu, 12 Mar 2009 10:45:35 -0500

Livingston Parish Residential Real Estate Market Update- February 2009

The information presented in this post is based upon data extracted from the Greater Baton Rouge Association of Realtors MLS database. For the purposes of my analysis, I included data for detached single family dwellings which sold in Livingston parish for the years 2004 through February 2009. I identified the home sales as either New Construction or Re-Sale because, in my experience, they have distinct characteristics.

The following chart plots unit sales of new construction and pre-owned homes (the bars) as well as overall unit sales and the six-month moving average of overall unit sales. We can see a generally downward trend in unit sales beginning in mid-2007. Examining more closely we can see that previously owned home unit sales have retracted to pre-Katrina levels for this time of year but that new construction unit sales has dropped below pre-Katrina levels.

Examining the absorption chart by price/sq.ft. for homes in the re-sale market segment we can see that overall a buyer's market exist but that for homes priced below $110/sq.ft. a seller's market exists. This is in the range where the highest velocity of home sales occurs.

In the new home segment, we observe that nearly half of the homes sold since the beginning of the year (8.5 out of 18) were priced below $100/sq.ft. and that in this range a seller's market exists. At all other price points buyer's market conditions persist.

The following chart shows the history of average home prices in the parish since 2004. We can see that between 2008 and 2009 the average price of a new home sold dropped over 7%. The average price of a previously owned home also dropped but only very slightly. Re-sale homes appear to be holding their value.

The next chart examines new construction by subdivision. We can see that for most subdivisions where home sales have occurred, a seller's market or near neutral market exists. We can also see that a significant amount (over 60%) of inventory exists in subdivisions for which no home sales have occurred this year.

Based upon this analysis, I believe that in Livingston parish, the market for affordable housing is in pretty good shape overall. There are some serious issues with respect to new construction but they seem to be related to price and location and a prudent home buyer could do quite well.

(225)413-3634 phone (225)313-3698 fax

don@thehomevendor.com - email

www.TheHomeVendor.com www.DonAndAlishaStern.com www.LiveAscension.com www.PelicanPointHomes.com

East Baton Rouge Parish, LA: February 2009 Residential Real Estate Market Update

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Thu, 12 Mar 2009 09:19:51 -0500

East Baton Rouge Parish Residential Real Estate Market Update- February 2009

The information presented in this post is based upon data extracted from the Greater Baton Rouge Association of Realtors MLS database. For the purposes of my analysis, I included data for detached single family dwellings which sold in Ascension parish for the years 2004 through February 2009. I identified the home sales as either New Construction or Re-Sale because, in my experience, they have distinct characteristics.

The next chart shows the history of Average home prices in East Baton Rouge Parish separating new construction from previously owned homes. The average home price over the first two months of 2009 shows a drop from the 2008 average of about 6% for new construction and about 3% for homes in the resale market segment.

If one looks at the average selling price per square foot of living area, however, new construction dropped only about 1.8% while homes in the resale segment dropped nearly 3.9%

Unit sales are at near historic low points. There has been a more or less steady drop in unit sales since August of 2008. While much of that drop can be attributed to the normal seasonality of the market, I believe it would be imprudent to assume that the nation's current financial crisis has had no effect upon our market. That said, our market has fared much better than elsewhere in the country. Our prices, while down a bit have not plummeted as in other areas. I think that the small drop in prices is more a reflection upon the inventory mix and that when pent up demand is released and has been satisfied, that appreciation in home values will once again be observed. In the meantime, real estate seems to be a safer place for wealth than many other investment options.

In terms of new construction absorption and inventory levels, there is currently a 7.5 month supply overall making this a buyer's market. If we drill down through the various price ranges we can see that the problem with oversupply exists for homes priced over $400K where there is a 21 month supply and a clear buyer's market. For price ranges below $400K a neutral market or even a seller's market exists. A shift appears to have occured between 2008 and 2009 in terms of the velocity of home sales. The absorption rates in 2009 were highest for homes selling for between $200K and $300K while in 2008 the highest velocity was achieved between $150K and $200K. This will bear watching in the coming months to see if the shift persists and a trend develops.

With respect to previously owned homes the absorption chart shows something different. While overall a similar 7.7 month supply exists, a buyer's market condition (over 6.5 months supply) market condition exists for all but the lowest price ranges where the highest velocity of home sales occurs.

(225)413-3634 phone (225)313-3698 fax

don@thehomevendor.com - email

www.TheHomeVendor.com www.DonAndAlishaStern.com www.LiveAscension.com www.PelicanPointHomes.com

Ascension Parish, LA Real Estate - Market Update for February 2009

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Tue, 10 Mar 2009 15:39:08 -0500

Ascension Parish Residential Real Estate Market Analysis - February 2009

The information presented in this post is based upon data extracted from the Greater Baton Rouge Association of Realtors MLS database. For the purposes of my analysis, I included data for detached single family dwellings which sold in Ascension parish for the years 2004 through February 2009. I identified the home sales as either New Construction or Re-Sale because, in my experience, they have distinct characteristics.

The following chart shows unit sales by month since January 2004. We observe that overall (indicated by the green lines) there has been a generally downward trend since late 2006. If one digs deeper into the data, one finds that most of this downward trend is due to a continuing drop in the sales of new construction. This suggests the drop in new home prices is a price elasticity issue rather than due to the current economic crisis and the restricted availability of credit. Homes in the pre-existing market space maintained their sales rate up until September of 2008 when the mortgage meltdown occured and hurrican Gustav took a toll on the Greater Baton Rouge metro area market.

Comparing February unit sales with unit sales in February of prior years, we observe that in the re-sale market space, unit sales are more or less equivalent to prior years (not counting February of 2006 when the positive effects of hurricane Katrina in Ascension parish were manifest). New construction, however, remains low. One bright spot here is that new construction unit sales in February 2009 were higher than in 2008 suggesting that the decline may be at an end and pent up demand could be ready to break loose.

In terms of pricing, average prices in both market segments were growing, or at least remaining stable, through 2008. With two months of 2009 sales recorded, the average price of both new construction and previously owned homes has declined by about 5%.

The following chart illustrates that the drop in the average price was not due to consumers simply purchasing smaller houses because the average selling price per square foot of living area also dropped.

For pre-owned homes, we observe an oversupply situation. Overall there is a nine-month supply. Looking more deeply into the following chart, however, we can see that this is primarily due to oversupply of more expensive homes. Affordable housing under $200K is in a seller's market where demand is high and supply is low.

Overall it is a buyer's market in the new construction segment. In general, however, affordable housing is in balance or exhibits characteristics of a seller's market while the situation worsens as price increases. The highest velocity of home sales occured in the $151K-$200K price range which has accounted for 42% of new home sales in 2009 through the end of February.

Looking at the top 10 selling subdivisions for new construction in 2009, we can see confirmation that more affordable housing is indeed selling at a higher rate.

(225)413-3634 phone (225)313-3698 fax

don@thehomevendor.com - email

www.TheHomeVendor.com www.DonAndAlishaStern.com www.LiveAscension.com www.PelicanPointHomes.com

Gonzales, LA - Mediterranean Style Golf Course Home in Pelican Point Golf Community

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Sun, 22 Feb 2009 14:16:37 -0600

Don Stern | Coldwell Banker Mackey Co. | (225) 413-3624

6198 Royal Palms Ct, Gonzales, LA

Mediterranean style golf course home is perfect for entertaining

5BR/3BA Single Family House

offered at $390,000

Year Built	2003
Sq Footage	3,226
Bedrooms	5
Bathrooms	3 full, 0 partial
Floors	2
Parking	Unspecified
Lot Size	14,450 sqft
HOA/Maint	$38 per month

DESCRIPTION

Large five-bedroom home located in the prestigious Pelican Point Golf Community that sits right on the golf course.

This house is also available for lease. Call for details.

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	Fireplace
High/Vaulted ceiling	Walk-in closet	Tile floor
Family room	Living room	Bonus/Rec room
Dining room	Breakfast nook	Dishwasher
Refrigerator	Stove/Oven	Microwave
Granite countertop	Stainless steel appliances	Attic
Laundry area - inside	Balcony, Deck, or Patio	Yard

COMMUNITY FEATURES

Business center	Clubhouse	Fitness center
Swimming pool(s)	Tennis court(s)	Golf course
Lake	Playground	Secured entry

ADDITIONAL PHOTOS

Contact info:

Don Stern

Coldwell Banker Mackey Co.

(225) 413-3624

For sale by agent/broker

Equal Opportunity Housing

Posted: Feb 22, 2009, 11:49am PST

East Baton Rouge Parish Residential Real Estate Market Report for Year Ending 2008

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Thu, 29 Jan 2009 13:17:08 -0600

East Baton Rouge Real Estate - Residential Market Report

East Baton Rouge Parish Residential Real Estate Market Report

My last blog entry dealt with the state of the real estate market in Livingston Parish as of the end of 2008. This post deals with the state of the market in East Baton Rouge Parish.

The information presented in this post is based upon data extracted from the Greater Baton Rouge Association of Realtors MLS database. For the purposes of my analysis, I included data for detached single family dwellings which sold in East Baton Rouge parish for the years 2003 through 2008. I identified the home sales as either New Construction or Re-Sale because, in my experience, they have distinct characteristics.

The following chart provides some general statistics.

The previous chart illustrates the vast difference in both the median and average home prices between new construction and existing home sales. It is also interesting to note that both the least expensive and the most expensive home sold were in the re-sale market segment.

The average selling price of new construction continued to climb in the parish, rising about 10% between 2007 and 2008. The average selling price of an existing home, on the other hand, remained about the same. The good news is that prices haven't fallen as in other areas of the country.

Unit sales, however, fell in both market segments and continues to trend downward. While new construction sales were off for most of the year, sales of pre-existing homes didn't suffer until both the meltdown of the financial market and the impact of Hurricane Gustav. With low interest rates, the first time home-buyers incentive and the general good health of the area I anticipate improvements in this market segment.

The highest velocity of new home sales occured for homes selling between $150K and $300K and in this range a seller's market exists. Overall, however, it is a buyers market with 7.3 months supply. This is due in large measure to the oversupply of homes priced over $400K. In this category there is more than a year's supply of homes at the 2008 average absorption rate.

For pre-existing homes, it is either a sellers or neutral market until home prices exceed $350K where there is more inventory than demand and it is a buyer's market.

I've authored a report which examines the residential real estate market for the Greater Baton Rouge metro area in much greater detail than has been
presented here. Click Here to view the table of contents for this report.

©2009 by Don Stern - All Rights Reserved
(225)413-3634 phone (225)313-3698 fax
don@thehomevendor.com - email
www.TheHomeVendor.com www.DonAndAlishaStern.com
www.LiveAscension.com www.PelicanPointHomes.com

Livingston Parish Residential Real Estate Market Report for the Year Ending 2008

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Mon, 26 Jan 2009 15:25:43 -0600

Livingston Parish Real Estate Report

Livingston Parish Residential Real Estate Market - 2008 Year End Report

My last blog entry dealt with the state of the real estate market in Ascension Parish as of the end of 2008. This post deals with the state of the market in Livingston Parish.

The information presented in this post is based upon data extracted from the Greater Baton Rouge Association of Realtors MLS database. For the purposes of my analysis, I included data for detached single family dwellings which sold in Ascension parish for the years 2003 through 2008. I identified the home sales as either New Construction or Re-Sale because, in my experience, they have distinct characteristics.

The following chart provides some general statistics.

An interesting contradiction appears in this chart. Both the median selling price and the median selling price per square foot of living area are higher for re-sale homes than for new construction but the averages of both these statistics are reversed... new construction stats are higher than existing home statistics which we are accustomed to seeing. I believe that affordability and pricing has had a major impact upon new construction sales. I'll look at this again later in this post when absorption rates and inventory levels are discussed.

Overall unit sales have been declining in Livingston Parish since the summer of 2007. While existing home sales peaked during the summer of 2008, the seasonality effect didn't impact upon new home sales where sales remained flat during the summer and then continued to decline afterward. The re-sale market remained at healthy pre-Katrina levels in terms of unit sales.

If one looks at absorption rates and inventory levels (shown in the next two charts), we can see that overall it is a neutral market for both new construction and re-sale market segments. If one looks deeper, however, it becomes apparent that price elasticity is a factor. Most home sales in both market segments were for homes priced under $200K. As prices increase above that it rapidly becomes a buyer's market and the velocity of home sales diminishes rapidly.

I've authored a report which examines the residential real estate market for the Greater Baton Rouge metro area in much greater detail than has been presented here. Click Here to view the table of contents for this report.

Ascension Parish Real Estate - Market Update Year-end 2008

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Mon, 19 Jan 2009 17:36:55 -0600

<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN">    Ascension Parish 2008 Year End Residential Real Estate Market Analysis

Ascension Parish 2008 Year End Residential Real Estate Market Analysis

Recent articles in the national and local press have, in my opinion, been pretty negative regarding the real estate market. I think there is more to the story that needs telling so people can make informed decisions about the real estate market.

The information presented in this post is based upon data extracted from the Greater Baton Rouge Association of Realtors MLS database. For the purposes of my analysis, I included data for detached single family dwellings which sold in Ascension parish for the years 2003 through 2008. I identified the home sales as either New Construction or Re-Sale because, in my experience, they have distinct characteristics.

The first parameter examined was the average sales price of a home in Ascension Parish. The following chart illustrates that prices held more or less steady during 2008. The average home price for new construction remained about $258K while that of a previously owned home remained at about $207K.

The next four charts depict unit sales over the six-year period examined for this report. We can see the overall sales (the green lines) have, indeed, dropped during 2008 as has been reported.

The next two charts show monthly unit sales over the same period. The first of these charts illustrate new construction unit sales only and the second deals only with homes in the re-sale market segment.

New construction unit sales have been significantly lower throughout the year.

We can see that, for the most part, homes in the re-sale market segment have maintained sales volumes at or near pre-Katrina levels. Most of the drop in unit sales reported in the popular media is attributable to New Construction. The re-sale market wasn't negatively affected to any significant level until the drop attributable to the effects of hurricane Gustav in September.

If one examines the previous chart closely, one can observe that the six-month moving average of unit sales has been dropping more or less steadily since the fall of 2006. The effects of the mortgage industry crisis are, in my opinion, only secondary with respect to New Construction. I believe that the increase in prices of new construction following hurricane Katrina was the primary cause for the drop in volume.

I've authored a report which examines the residential real estate market for the Greater Baton Rouge metro area in much greater detail than has been presented here. Click Here to view the table of contents for this report.

Inquiry - Impact of Fire on Home Value

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Thu, 09 Oct 2008 12:40:55 -0500

When our power was restored after the outage caused by Hurricane Gustav, a fire started in our attic. The local fire departments were on the scene quickly and managed to save the home. Thankfully, there was noone injured as they fought the fire and we were not home when the fire started so my wife and I were not injured either.

The experience leaves one feeling violated but we've since secured a home to live in while our home undergoes the necessary repairs. The roof will have to be nearly entirely replaced as well as many interior walls and ceilings. Mold has started to grow and we're planning to hire a mold remediation contractor in ensure that no mold remains when we finally move back in. A restoration company has removed our belongings and is in the process of trying to recover them. We believe that we are adequately insured and that our home will be restored.

That brings me to my inquiry. Obviously, the fact that a fire has occured will have to be disclosed to potential buyers should we decide to sell this home. In my experience as a Realtor®, there is a negative impact upon the marketability of a home which has sustained fire damage even if that damage has been repaired. Is anyone aware of any studies done which will help to quantify the impact?

Livingston Parish Market Update - September 2008

Don Stern ~ Greater Baton Rouge Real Estate (Coldwell Banker Mackey ) — Thu, 09 Oct 2008 12:07:04 -0500

Livingston Parish Real Estate Market Update - September 2008

Livingston Parish, like Ascension and East Baton Rouge parishes, was negatively effected by hurricane Gustav. Unit sales fell dramatically during September. The following chart illustrates the impact of Gustav upon unit sales in Livingston Parish.

Home have also remained a good investment in Livingston Parish. The following chart shows that average prices in the new home market segment increased during 2008 and homes in the re-sale segment held their values. This is a far different situation than we are seeing in some other areas of the country where the bubble has burst, foreclosures are up and prices have fallen. We will continue to closely monitor prices in our area as the country makes its way through the current economic crisis.

The following set of charts shows absorption rates for the past five years as compared with 2008 and relates that rate to current inventory levels.

Sales of new homes remains depressed compared with prior years. Home sales in the re-sale market segment have settled back to pre-Katrina levels. In the re-sale segment, inventories in the highest velocity price ranges (below $200K) are either in balance or insufficient to meet the demands of the marketplace. Over $200K it rapidly becomes a Buyer's market where supply exceeds the demand.

The preceding analysis was based upon data extracted from the Greater Baton Rouge Association of Realtors MLS system. The information contained herein is presumed to be accurate but is not warranted.

As always, I welcome readers to visit my websites at www.TheHomeVendor.com or www.LiveAscension.com or www.DonAndAlishaStern.com for real estate information about and to search for homes within the Greater Baton Rouge area. Click here to search for homes.