Baton Rouge Video Tours: Real Estate Market Report Of Villa Del Rey Subdivision 2011

http://www.appraisersinbatonrouge.com/ – Baton Rouge Real Estate: How Is Villa Del Rey Subdivision Performing Into 2011, Increasing, Declining or Remaining Steady?

Potential $20K Loss. This is an on-going series into the decline of Greater Baton Rouge Home Values and why potential buyers should beware and not pay too much for “some” local overpriced listings. YES, there are overpriced listings in the Greater Baton Rouge Housing Market! Bill strongly recommends in this housing environment to obtain a Pre-Purchase Appraisal to gain ALL of the facts before making a local home purchase decision. In the appraisal I recently completed, the home sold for $155,900 in 2007, a Post Hurricane Katrina high price, and is now on the market for $136,000. If this home sells for $136,000, then homeowner only loses $20,000 and will lose a total of $28,160 after paying the selling commission.

Villa Del Rey Subdivision Baton Rouge

 

A recent home appraisal in and analysis of Villa Del Rey revealed this interesting finding. From 2009 to 2010 to 2011, the median sales price has declined from $145,000 to $137,500 to now $136,000 (chart below is not updated) into 2011 based only on 3 sales. This drop is due to foreclosure and/or distressed sales. Actually, the chart below is incorrect because GBRMLS reports “38” solds in 2010, not just 33, with a median of $137,500. Of those 38 sales, 11 or 29% were foreclosures, which is quite high. And, in 2011, the 3 solds only sold for $119,000, $136,000 and $139,000 indicating these sold below market.

THE CORRECTION IN HOME PRICES – This is becoming the familiar “Stair Step Up and Down”…..The Climb And Then Descent Of The Stairs In This Chart Below Visually Explains The Correction!

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Villa Del Rey Homes

 

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2005 to May 3, 2011. This information was extracted on 5/3/2011. YES, permission was granted by GBRMLS to use Subdivision Price Trends Chart Report!

AUTHOR’S BIO:

Bill Cobb is Greater Baton Rouge’s Home Appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A home appraiser with 20 years experience, Bill Cobb brings a wealth of knowledge to the table as a home appraiser.

Bill’s company, Accurate Valuations Group, serves Greater Baton Rouge (East Baton Rouge Parish, West Baton Rouge Parish, Western Livingston Parish and Northern Ascension Parish).

Contact Bill Cobb and Accurate Valuations Home Appraisal Group for your next home appraisal:
Office: 225-293-1500, Cell: 225-953-0638
Fax: 1-866-663-6065
info@accuratevg.com
http://www.accuratevg.com/

Baton Rouge Real Estate Appraisers Report On 2010 vs 2011 Housing Market

http://www.batonrougerealestateappraisers.net/ – East Baton Rouge Parish Quarterly Sales By Zip Code Q1 2010 versus Q1 2011 Report. Report shows an increase in number of home sales over 2010, but significant declines in Average Sales Prices overall. Report includes ALL housing types in East Baton Rouge Parish.

 

Accurate Valuations Group (Home Appraisals) has completed an analysis of the East Baton Rouge Parish housing market from First Quarter 2010 versus First Quarter 2011. The results are below. Click the chart to view in a larger size.

East Baton Rouge Parish Quarterly Sales By Zip Code Q1 2010 versus Q1 2011 Accurate Valuations Group

This is a lot of data to report on in one (1) article with “20” zip codes. A short summary follows:

Number of Home Sales Increased Over 2010! For the number of home sales, only 9 zip codes reported a smaller number of sales. And, Ten (10) Zip Codes experienced more sales in Q1 2011 than in Q1 2010, which is great news for our market.

Average Sales Prices Overall Decline! This is consistent with the CoreLogic report on national home prices falling for the 7th straight month, as reported on Thursday, April 7, 2011. Thirteen (13) of the 20 Zip Codes showed declining average sales prices versus only Seven (7) showing increases. Local home prices are continuing to correct.

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Average Sales Price Per Square Foot Overall Declines! This is consistent with the CoreLogic report. Fifteen (15) of the 20 Zip Codes showed declining average sales prices per sq. ft. versus only Seven (5) showing either no change or just slight increases.

Biggest Gainers. Zip Code 70807, the Scotlandville market, showed a 450% increase in number of home sales. Zip Code 70739, the Central or Greenwell Springs market, showed a +16.2% increase in Average Sales Prices AND +5.6% in Average Sales Price Per Sq. Ft.. Central is a “hot” market viewed by locals as having a favorable school district.

Largest Declines. Zip Code 70820, the market below LSU off Brightside, showed a -35.3% decrease in number of home sales. Zip Code 70802, the market in and around Central Business District, showed a -33.4% decline in Average Sales Prices AND -30.2% decline in Average Sales Price Per Sq. Ft..

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Author’s Bio:
Bill Cobb Appraiser Baton RougeBill Cobb is Greater Baton Rouge’s Home Appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A home appraiser with 20 years experience, Bill Cobb brings a wealth of knowledge to the table as a home appraiser.

AVGCameraLogo100Bill’s company, Accurate Valuations Group, serves Greater Baton Rouge (East Baton Rouge Parish, West Baton Rouge Parish, Western Livingston Parish and Northern Ascension Parish).

Contact Bill Cobb and Accurate Valuations Home Appraisal Group for your next home appraisal:
Office: 225-293-1500, Cell: 225-953-0638
Fax: 1-866-663-6065
info@accuratevg.com
http://www.accuratevg.com/

Baton Rouge Housing Trends: Shenandoah Hills Subdivision 2010 Home Prices Increase

http://www.batonrougerealestateappraisers.net/ – Baton Rouge Housing Trends: Shenandoah Hills Subdivision 2010 Home Prices Increase!

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Solds In Shenandoah Hills Subdivision from 1/2010 to 12/31/2010 revealed:

Average Sales Price: $146,357 ($133,260 in 2009)
Average Sold Price Per Sq. Ft.: $108.12/sf ($99.34/sf in 2009)
Median Sold Price: $149,500 ($132,500 in 2009)
Number of Sales: 7 (5 in 2009)
Average Number of Days On Market: 44 (48 in 2009)
Low To High: $129,900 to $152,000
Number of Sold REO/Foreclosures Noted In MLS: 0
Current # Listings: 3, 0 Are Foreclosures
Current Listings Price: $140,900 to $150,900 or $105 to $113/sf

Shenandoah-Hills-Price-Trends-Baton-Rouge

3707-JAMES-VICTOR-DR-Baton-Rouge

 

The Median Sales Price has increased from $132,500 in 2009 and $144,000 in 2008 to $149,500 in 2010.

 

3632 MERRITT ANNE DR

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2010 to December 31, 2010. This information was extracted on 1/1/2011. YES, this appraiser does have the permission of GBRMLS to use the chart above Subdivision Price Trends Report!

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Baton Rouge Real Estate Appraisers: Why do some houses sit on the market while others sell?

http://www.batonrougerealestateappraisal.com/ – Baton Rouge Real Estate Appraisers: Why do some houses sit on the market while others sell?

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Here’s an interesting video by Jay Papasan, an executive of Keller Williams Realty. We see “Jay” on the month “This Month In Real Estate US: November 2010” videos on YouTube. In this video, Mr. Papasan explains why some houses just sit there on the market while others sell, which is an appropriate topic for locals now that the expiration of the Federal tax credit means a lot homes locally are just sitting.


I thought his explanations were helpful explanations. The visual displays of these concepts of his x/y axis were helpful as well.

I’m curious to hear the experience of both home owners and real estate agents as to what if Mr. Papasan is explaining is reality locally? Any ideas on what it would take for homes to sell faster? Are locals just waiting for a bottom before buying or is there something more going on in their psyche – more of a concern about what’s taking in Washington, DC than a concern for the Baton Rouge economy maybe?

You can follow Jay Papasan on Twitter at @jaypapasan, and on Facebook @ http://www.facebook.com/jaypapasan . Mr. Papasan is also coauthor of The Millionaire Real Estate Agent, The Millionaire Real Estate Investor & SHIFT.

Baton Rouge Home Appraisers Release Major Study On Broadmoor Sherwood Forest Market For 2010

http://www.batonrougerealestatetrends.net/ – Baton Rouge Home Appraisers Release Major Study On Broadmoor Sherwood Forest Market For 2010! The challenges local home appraisers now face when valuing Greater Baton Rouge homes after the Federal Tax Credit Expiration.

I recently completed a refinance appraisal assignment off Sharp Rd and witnessed a trend I wanted to bring your attention to. This is still the recovering Post Hurricane Gustav market of MLS Area 42, zip code 70815, generally Broadmoor and Sherwood Forest areas. I say Post Hurricane Gustav because Gustav’s damage in 9/2008 disrupted this housing market more than most realize. I believe the 2 weeks it took to restore utilities had a psychological impact on this market as home sales prices dipped, see chart below. Chart represents home sales from $100K to $300K in 70815 from 1/1/2007 to present.

mls area 42 baton rouge number of home sales post hurricane gustav

As a home appraiser appraising in any local market that is now NOT always increasing every year as in prior years, it’s now crucial to know where the market has been, where it is now and where it might be in the future.

Cautions On Interpreting Market Data Post Federal Tax Credit Expiration. This post below illustrates that just because the Federal Tax Credit artificially elevated home sales and possibly home prices, doesn’t indicate an always favorable appraised value for your home. The word favorable is a favorable value in the home owner’s mind, not necessarily market reality. The areas listings inventories or homes for sale, has been building or increasing for months now while at the same time home sales have been slowing. This could be attributable to the national economy finally catching up with the local economy, more difficulty now in qualifying for a mortgage and/or the shift within the Greater Baton Rouge housing market toward more affordable housing, ie., closer to $100/sf versus $135/sf to $160/sf.

baton rouge appraisal assignment

 

baton rouge home appraisalsAppraisal Assignment: 38 year old 2,850sf living area home, 3 Bedroom, 2.5 Baths, off Sharp Rd in between Broadmoor and Sherwood Forest areas.

 

mls area 42 baton rouge

MLS Search Parameters

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3 to 5 Bedroom Slab Homes in Area 42 Between $150,000 to $275,000, Zip Code 70815, 10/4/2008 to 10/7/2010, Ages 16-20 to Max Age.

 

Sold Results: Median Sales Prices!

Sold results indicate an increasing median sales price since 10/4/2008 of +11% and +7.5% over the past year.

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Sold Results: Average Sold Price Per Sq. Ft.!

Sold results indicate an increasing average sold price per sq. ft. since 10/4/2008. In Broadmoor, the increase has been $4/sf or +5.3%. In Sherwood Forest, the increase has been $2/sf or +2.7%.

mls area 42 sold price stats

broadmoor area scatter chart baton rouge

 

baton rouge appraisal assignment market conditions

 

HOWEVER, The current market conditions, the Fannie Mae 1004MC or Market Conditions Form describes a different market condition THAT MUST BE ANALYZED AND RECONCILED BY THE APPRAISER.

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COMPETING HOME SALES ARE DECLINING – From 18 to 3!

ABSORPTION RATE IS DECLINING – From 3 Sales Per Month Down To Just 1!

TOTAL COMPARABLE ACTIVE LISTINGS IS INCREASING – Inventory Is Growing!

MONTHS OF HOUSING SUPPLY IS INCREASING – FROM 5 TO 22!

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NOTE: When the top right 4 boxes are checked for Declining, Declining, Increasing and Increasing, that’s not a good market indication!

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Chart Showing Slowing Home Sales!

mls area 42 baton rouge number of home sales declines

 

Conclusion.

When appraising local Greater Baton Rouge Homes, it’s important for both the appraiser and the homeowner to know that ALL market conditions are examined and reconciled to arrive at a value conclusion. In the above market examination, YES, the median sales prices and average sales prices per sq. ft. were increasing, but were also stil recovering. If one examines the very first chart in this post, you’ll find that this market still hasn’t fully recovered to the $180K median sales prices of 2007/2008 prior to Gustav. baton rouge market conditions

And, it’s very important to lenders underwriting the loan if there’s only 1 competing home per month selling resulting in a 22 month supply of competing housing, declining absorption rate (declining number of homes within the large inventory being removed from that inventory), increasing number of months on the market and increasing number of listings being added each month.

I do hope locals can now better understand part of the appraisal process. Home appraisals in 2010, with the newer 1004MC form and more and more requirements being added each month it seems, take much longer to complete now with much more investigation and reporting requirements.

REO OR FORECLOSURE RATE!

And, for those that would like to know to know the REO or Foreclosure rate for this assignment, the chart is below showing only 2 “MLS” foreclosures for homes 2500sf to 3100sf since 10/4/2008. There could have been several more take place outside of these 2 listed in MLS as many national lenders today choose not to list their REO inventories in the MLS anymore….up to 70%. In my report, I stated, ” It’s also stated here that a recent article (The Landmines Within by Michael Tarabotto http://activerain.com/blogsview/930436/The-Landmines-Within ) stated that as much as 70% of REOs never make it into the MLS – Meaning that it might be impossible to know or state the exact # of competing REOs if
they’re not being listed. MLS is reporting 2 comparable REO listings.”

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Bill Cobb Accurate Valuations Group Large Background 2

Data used with permission of the GBRAR MLS, search dates 1/1/2007 to 10/07/2010, extracted on 10/07/2010.

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