Greater Baton Rouge Market Trends
Source: Helene Kurtz, C.J. Brown Realtors
Last week’s headline in The Advocate’s business section was pretty sobering.
Area home sales sink 32%. Over the weekend, international markets were highly
volatile on fears that the U.S. economy would enter a recessionary period, and
yesterday the Federal Reserve Bank cut the discount rate by 3/4ths of a point.
So, how bad is it and what does it mean to area home owners?
There’s no
way to sugar coat this. The 4th quarter of 2007 was not a cheery time and
December felt outright glum. Though not as bad as some of the outlying parishes,
EastBaton Rouge did not fare well. Here’s a snapshot of what’s been happening.
The data provided is from the Greater Baton Rouge Association of Realtors’
Multiple Listing Service as of 1/23/2008.
| East Baton Rouge Parish Home Sales 2004, 2006, and 2007 |
| Period | 2004 | 2006 | 2007 | % Change vs. 2004 | % Change vs. 2007 |
| 1st Quarter | 1,136 | 1,492 | 1,248 | 10% | -16% |
| 2nd Quarter | 1,589 | 1,791 | 1,741 | 10% | -3% |
| 3rd Quarter | 1,443 | 1,819 | 1,532 | 6% | -16% |
| Oct | 446 | 454 | 419 | -6% | -8% |
| Nov | 421 | 463 | 396 | -6% | -14% |
| Dec | 422 | 481 | 343 | -19% | -29% |
| 4th Quarter | 1,289 | 1,398 | 1,158 | -10% | -17% |
| Total | 5,457 | 6,500 | 5,679 | 4% | -13% |
| Avg. $(000′s) | $146 | $187 | $198 | 36% | 6% |
Buyers are
expecting to see price reductions. They are waiting on the sidelines, watching
and looking for value. As a seller you are not likely to get the top dollar you
thought you’d get 6 to 12 months ago. But, keep in mind that the home you’d like
to purchase is also affected by the same market conditions. It, too, will cost a
little less. If you are thinking about buying a more expensive home, then this
is good time to make your move.
If I had some great way of forecasting the very best time to buy a home I’d
be on the front page of the Wall Street Journal. What I can say, though, is that
these are the most favorable market conditions we have seen for buyers since the
storm. And, this afternoon, the President of our mortgage brokerage sent us a
flash alert on a significant drop in interest rates. Here’s the latest, hot off
the press:
- 5% – 30 year fixed for loans over $150,000.00 to $417,000.00
- 4.625% – 15 year for loans over $150,000.00 to $417,000.00
- 5.125% – 30 year for loans over $99,000.00 to $149,999.0
East Baton Rouge County, Louisiana Real Estate Appraisal | East Baton Rouge Home Appraisers
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