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.
©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
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