East Baton Rouge Parish Real Estate Market - 2008 Mid-year Analysis

By Don Stern

Real Estate Agent with Realty Executives South Louisiana

July 26, 2008 07:46 AM

East Baton Rouge Parish Real Estate - Mid-year Market Analysis

Introduction

This report presents a comprehensive view of the real estate market for detached single-family homes in East Baton Rouge Parish. Current and historical sales data are examined together with census projections to gain some insight into the future of real estate in this market area.*

Historical and current data were obtained from the Greater Baton Rouge Association of Realtors MLS database. Data were extracted representing sales from January 1, 2003 through June 30, 2008. Only data for Detached Single Family homes were included in the analysis. Manufactured homes and multi-family dwellings are outside the scope of this analysis.

East Baton Rouge Parish Home Prices

The average price of new homes continued to rise in 2008 growing by nearly 13.5% over average 2007 price for new construction. In the resale market segment there has been no significant change in the average home price between 2007 and 2008. Real Estate remains a quite viable investment in the parish.

East Baton Rouge Parish Home Sales

Unit Sales - Monthly Trends

Unit sales in the parish are soft and we have not yet seen the level of increase that historical seasonality effect would predict. The six-month moving average during 2008 has been the lowest it has been in the five-year period examined. While the resale market remains relatively strong, the market for new construction is off substantially.

East Baton Rouge Parish Real Estate Market Absorption

New Construction

The velocity of new home sales for 2008 was highest in the $151-250K price range where inventory is balanced with demand and there is a 5.7-month supply. A second peak occurred in the over $400K price range. Inventory in this price range, however, is more than double that in other price ranges resulting in a 13.6 month supply.

Resale Homes

Overall it is a seller's market in East Baton Rouge parish with respect to homes in the resale market segment. A seller's market exists for homes selling for less than $250K. Inventory is more or less balanced between $251K and $300K. Above this price range, it turns to a buyer's market.

Please contact the author directly for information regarding the availability of his in-depth mid-year market analysis for the entire Greater Baton Rouge market area.

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.