Well, the 2008 numbers for Zachary home sales are in and the downward trend in sales continues. Home sales in Zachary have decreased for the third consecutive year since 2005 and Hurricane Katrina. As I reported in the 3rd quarter of 2008, Zachary home sales are now less than pre-Katrina sales. Hurricane Katrina marked a spike in home sales due to an influx of New Orleans residents relocating into the area. Since that catastrophe, things are slowing down and hopefully we are coming to the bottom of the trend. Let's get into the numbers.
Overall Sales
Overall, home sales decreased by 36 percent in 2008 when compared to sales in 2007. Table 1 lists Total Home Sold, Average Price and Average Days on the Market (DOM). As indicated, the average sales price increased, which is interesting considering a decrease in total sales. However, this is good news because it's an indication that home values are holding strongly. The total DOM increased by nearly a month and a half in 2008. Therefore, those people who are looking to sell should expect their home to remain on the market somewhat longer.
Table 1
|
*Zachary Yearly Homes Sales Comparison |
||
|
2008 |
2007 |
|
|
Total Homes Sold |
258 |
402 |
|
Average Price |
$233,568 |
$221,727 |
|
DOM |
116 |
77 |
A Breakdown of Sales
Table 2 gives a breakdown of where the most sales take place. The mid ranged priced homes led the pack with 105 homes, even though it represents a 30 percent decrease from 2007. The homes which sold at less than $200,000 came in a close second. These homes led the pack in 2007 with 188 sales. The number of homes sold in the $400's range doubled from 2007 to 2008 and sales of the $500's homes decreased by nearly half. These are very interesting numbers considering there is a slow down in overall sales. It is an indication that Zachary is attracting middle to upper-middle class consumers.
Table 2
|
*Zachary Yearly Homes Sales Comparison by Price Range |
||
|
Number of Sales(2008/2007) |
Average DOM (2008/2007) |
|
|
Up to $99,999 |
11/9 |
63/82 |
|
$100,000 to $199,999 |
96/188 |
117/64 |
|
$200,000 to $299,999 |
106/152 |
119/83 |
|
$300,000 to $399,999 |
23/35 |
130/96 |
|
$400,000 to $499,000 |
16/8 |
166/163 |
|
above $500,000 |
6/10 |
39/136 |
Looking Ahead to 2009
I believe the downward trend we are witnessing locally, is consumer reaction to the national trend. Basically, people are rather apprehensive about purchasing that new home due to fear. However, the job market continues to be strong in the Baton Rouge Metro area and lenders do have money to lend at low interest rates. I received this information from several lenders in the area and based on my experience with clients who purchased real estate in 2008. We must continue to drive the message that all is not doom and gloom in our local markets. Even though the Zachary market has slowed down, home values have remained stable. I believe 2009 will be a pivotal year for the local and national markets. Hopefully, we are at the bottom of the trend and the next time I present this report, we will see an increase in sales.
*Data taken from the Greater Baton Rouge Association Realtors
Comments(0)