East Baton Rouge Real Estate Market Update - April 2008
This update examines the condition of the real estate market in East Baton Rouge parish. For the purposes of this analysis, data for detached single family homes in East Baton Rouge Parish
that was extracted from the Greater Baton Rouge Association of Realtors MLS database was used. Sales recorded through April 2008 are included in the analysis as well as the
inventory of active listings as of 5/5. The data and my subsequent analysis, while deemed reliable, is not guaranteed.
The previous chart shows that home prices have not fallen in East Baton Rouge parish as they have done in other parts of the nation. In fact, the average price of a new home has risen substantially while the average price of a previously owned home has remained relatively the same as 2007.
On the other hand, unit sales have fallen when compared to April home sales in previous years.
Looking at all periods since 2003, we can see that the East Baton Rouge Real Estate market has softened but just a bit. While there was a smalldrop in overall unit sales from March 08 to April 08, a similar drop has occurred in two out of five of the previous years. Nevertheless, we'll be watching this statistic closely.
Examining absorption rates of re-sale homes and comparing that with current inventory levels shows a very healthy market with only a 5.4 month supply overall. In fact, in the lower price ranges (below $200K) it is clearly a seller's market. Not until the price exceeds $350K does it become a buyer's market.
With new construction, on the other hand, an 8.5 month supply exists... a buyer's market overall. In the lower price ranges it is, more or less, a neutral market and in the high price range (over $350K) a buyer's market exists. One niche opportunity that builder's may want to explore is in the $300K-350K price range where only about 3-months supply exists. The demand exceeds 5 homes per month and there are only 16 homes available. Finally, it is interesting to note that the demand homes over $400K is substantial and equivalent to the demand in the $200K-250K range. There are simply too many of these $400K+ homes currently available... a 16.3 month supply.
Please feel free to contact me with any questions you may have about this report or if you'd like to discuss representation in buying, selling or building a home. Customized reports for a particular market segment or area can also be generated.
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
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