After watching 60 Minutes last night, I'm happy to report that I don't know what the producers are smoking! First of all, they report on the housing market as if there is such a thing as a national housing market. Folks: Let me just clear up this little myth right now. THERE IS NO NATIONAL HOUSING MARKET. All real estate is local. Let's put it another way. If it snows in Colorado, what affect does that have on the weather in Louisiana? If you answered: None. Then: ding ding ding You are correct! Real Estate is like the weather and there are little, if any affects on one housing market because of another.
In fact, through all the doom and gloom news about housing prices falling, the Baton Rouge real estate market has seen an increase in the average home price for 2008 up from 2007. But wait! Don't just take my word for it. I'm going to SHOW you. I have collected average sales data on a monthly basis for Baton Rouge from 2004 through 2008. The chart below depicts the data for you.
First, please note that housing prices are up and down from month to month all the time. Remember that Real Estate is a long term investment, so when comparing look at 2008 verus 2004.
Second, look at the red line. This line shows the average home sales price for the year. Note how it is steadily increasing even though the "national real estate market" is crashing. Proof Positive that there's no national real estate market.
2005 and 2006 had much bigger steps up in value due in large part to the mass influx of population after Hurricane Katrina, but look at the step up for 2008. Here's an increase in home values even though there's supposed to be a recession going on. Historically, Baton Rouge has shown a modest but steady appreciation. We didn't experience the abnormal increases in appreciation like some of the other markets that are now having trouble, nor did we have a mulititude of predatory lending. These two factors have helped to create a more stable real estate market in the Baton Rouge area.
If you are considering a move within the Baton Rouge area, consult your local real estate professional to get the facts and be armed with data. The news stations are unlikely to provide you with this information. The data I am providing here I have pulled from the Greater Baton Rouge Association of REALTORS MLS.
Here's another interesting point to note. Baton Rouge is expected to see an increase in job growth over the next two years. That's right! 2400 new jobs in 2009 and 6800 new jobs in 2010. More jobs means even more activity in our housing market. So turn off that news station (local or not), close the newspaper, and get the real facts. Baton Rouge is a great place to live with a strong economy, a stable housing market, and expected job growth.
So if you are planning to buy or sell, do it! Now is the best time to make that move. Rates are great I'm ready to help you move.
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