Ascension Parish Market Analysis - March 2008 Update

The following analysis is based upon data extracted from the Greater Baton Rouge Association of Realtors MLS database. The data extracted were representative of home sales between January 1, 2003 and March 31, 2008 and current inventory of detached single family dwellings.

Home sales in the parish are more or less normal. We can see that unit sales have risen and should continue to rise as we enter the peak selling season of April through September.

Average home prices are holding in both the new home and re-sale market segments although relatively flat for the past couple of years in the re-sale segment.
In terms of unit sales, the re-sale market segment is on pace to equal or exceed 2007 levels.
Overall, the given the monthly absorption rate for 2008 (based upon only three months of data) shows us that there is a 6.4 month supply of homes in this market segment. If one segments the data by price range you can see that the inventory selling below $200K accounts for more than 57% of home sales and, at current inventories is experiencing a seller's market with less than a for month supply of homes. As the price exceeds $200K, sales aren't keeping pace with demand and it is a buyer's market. As the price increases the inventory situation worsens.
After months of bad news for homebuilders, there is finally a bright spot. The drop in unit sales for new homes has turned the corner and we saw an increase in new home sales for the Month of March. While still lower than in previous years, seasonality is kicking in and we will probably begin to absorb some of the excess inventory at a faster pace.

In some price ranges, namely homes under $200K, supply is more or less matching demand. In the higher price ranges there is still excess inventory. Savvy buyers might be able to take advantage of this and locate a bargain. So far in 2008, homes selling in the $200K-300K price range have accounted for almost 54% of home sales.

If you have any questions about this analysis or would like to request additional information then please feel free to contact me.

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

Contact me via e-mail or call me at (225) 413-3624 for more information.

©2008 by Don Stern - All Rights Reserved