The Capitol Region is continuing to see rising home prices in the wake of a continued national downturn, according to a new report. The average home price in Baton Rouge was up by 4.14% in February, when compared with the year before, according to a report from First American CoreLogic's Home Price Index. To put that in perspective, First American says more than 700 U.S. statistical areas saw prices drop in February, and for the 24th consecutive month, average housing prices were down nationally, by 12.2%. Eight states saw home prices go up in February. Louisiana at 3.28% was the second-biggest gainer, behind West Virginia with an 8.25% increase. First American bases the HPI on public records sources such as property sales, tax assessments and mortgage filings.
3/31/09
Housing analyst says B.R. market should rebound early
The Baton Rouge metro-area housing market is expected to have an early and healthy recovery, a National Association of Homebuilders analyst told the Baton Rouge Press Club today. Robert Denk, a staff forecaster for the NAHB, says the area will not only be among the more stable markets expected to recover by late this year, but the NAHB projects it will surpass national housing starts into 2010.
The market, boosted by the Katrina effect in 2006-07 while the national housing market dived, has remained stable in the recession. "We're fairly bullish on the Baton Rouge market," Denk says. Louisiana’s housing market also is expected to recover by later this year because of stronger economic indicators including lower unemployment, less subprime and ARMs exposure, and stable housing prices. "Louisiana prices are close to historical norms so don't worry over steep declines," Denk says.
For the boom-bust states like Nevada and Florida, he forecast a lingering downturn that could last several years. Denk called the downturn "necessary medicine" that could bring housing prices to more affordable levels. He criticized national media for overstating the housing crisis, failing to point out there are stable markets in the nation. Denk predicts Fannie Mae and Freddie Mac will stay under government control another five to 10 years before returning to private management.—
1/26/09
Baton Rouge makes list of hottest real estate markets
Housing Predictor ranks Baton Rouge in its top 10 markets for homebuyers. The city ranked No. 9 on the annual list of places where buyers are most likely to see an investment from buying a house. Housing Predictor looks as factors such as prospects for growth and strong employment. McAllen, Texas, topped the list, and two other cities from the Lone Star State—Austin and Corpus Christi—were among the top 10.
10/1/08
Report says B.R. at 'minimal' risk of home price declines
A report on real estate trends in 381 U.S. markets finds that Baton Rouge and all of Louisiana's metro areas are at minimal risk for seeing home prices fall in the next two years. According to the quarterly study from PMI Mortgage Insurance Co., not one MSA in Louisiana was seen to have a greater than 1% chance of seeing home prices fall. In contrast, all of the metro areas in California, Florida, Arizona and Nevada were seen to have a greater than 60% chance of seeing a drop in home prices, with Fort Lauderdale, Fla., and Riverside-San Bernardino, Calif., ranking the highest at 99.5%.
8/11/08
Report says B.R. home prices likely to rise
A report by two Washington think tanks that study housing issues says that Baton Rouge residents are likely to see the equity of their home increase between $61,802 and $59,651 by 2012. The study by the Center for Economic and Policy Research and the National Low Income Housing Coalition, tracked changes in the 100 largest U.S. markets. New Orleans is slated to see an equity increase of $88,907 and $86,232. In some markets, such as Los Angeles and San Francisco-Oakland, homeowners are expected to see equity plunge by more than $220,000 over the next four years.
6/10/08
B.R. housing prices standing strong
A Wall Street Journal analysis of the U.S. housing market since its peak at the end of 2005 ranks Baton Rouge 16th among all metro areas in increased home prices. The median home price during the fourth quarter of 2007 was $172,537, an 11.1% increase over the $155,257 median two years earlier. In contrast, the national average during that period was for median home prices to drop by 8.1%. Salt Lake City saw the biggest increase, 27%, to $232,276 in the two-year period. Santa Barbara, Calif., fared worst, with home prices dropping 26% to $475,832.
The Capital Region saw its mortgage delinquency rate increase by 1.85 percentage points during that period, virtually similar to the national average of 1.84 points. During the end of last year, 4.2% of mortgages by value in Baton Rouge were 30 days or more late, ahead of the national average of 3.86%. Merced, Calif., posted the biggest jump in delinquency rates, 7.76 percentage points, to 9.8%. Brownsville, Texas, saw the biggest drop, falling by 1.53 percentage points to 5.5%. To see an interactive map of how 200 metro regions are doing two years after the housing peak.
5/7/08
B.R. real estate market among nation’s hottest
Baton Rouge ranked ninth on a list of the 10 fastest-growing real estate markets, according to Money Magazine and CNNMoney.com. The report says Capital Region home prices are expected to rise by 2.8% this year and 2.1% in 2009. In comparison, home prices are expected to drop in 75 of the 100 biggest U.S. cities. Some markets are expected to keep on dropping until 2010.
4/29/08
B.R. ranks low for foreclosures
Baton Rouge ranks near the bottom of a report that measured first-quarter foreclosure activity in the 100 largest metro areas. The city finished 94th in RealtyTrac's report despite a 41% jump in foreclosures from the last three months of 2007. There was one foreclosure for every 889 households in metro Baton Rouge, far below the national average of one for every 194 homes. Stockton, Calif., had the highest foreclosure rate, with one out of every 30 homes being seized. Allentown, Pa., had the lowest, with one foreclosure for every 12,328 homes. RealtyTrac says foreclosures went up an average of 23% from the fourth quarter of 2007 to the first quarter. In the state rankings, Louisiana was 37th, with foreclosures happening on one out of every 944 houses. Nevada once again led the list, with one foreclosure for every 54 households.
4/9/08
Campaign launched to promote strength of B.R. real estate
The Capital Region Builders Association, Greater Baton Rouge Association of Realtors and Baton Rouge Growth Coalition have joined forces for the first time to promote the local real estate market and allay fears about how the national housing slump is affecting the Capital Region. The campaign, called "Homeownership builds stronger communities," is scheduled to run at least the next three months and will involve television, print, billboard and Web ads, along with appearances before local media outlets and civic groups. The campaign aims to show potential homebuyers that the housing slump affecting most of the nation isn't a factor locally. "Housing and real estate is a local market," says Billy Ward of Champion Builders, who serves as CRBA Board Chair. "This is a great time to buy a new house in the area." Local home prices are stable, interest rates are at record lows, the price of building materials has dropped, home values continue to appreciate and the labor supply is good. Visit the Web site here.--Timothy Boone
3/4/08
Realtors forecast buyer's market for B.R.
The National Association of Realtors forecasts a buyer’s market this year in the Baton Rouge area housing market and no recession for the nation. Despite easing off the Katrina bump and national sagging consumer confidence, the forecast describes the area market as “solid for Louisiana and very healthy relative to most markets around the country.” According to the NAR, sales and prices will remain robust in the metro area, the Baton Rouge area economy has been performing “respectably,” and the subprime fallout is a national concern.
1/29/2007
Brian Andrews: Misreading foreclosures
Headlines in the national press would lead most observers to believe that residential foreclosure levels are at historic highs from coast to coast. The truth of the matter is that while foreclosure levels are high, the lion's share are limited to certain geographic areas that do not include Louisiana.
According to a recent report by the Mortgage Bankers Association, new foreclosure rates in the third quarter of 2007 were the highest in Nevada, Michigan, Ohio, Indiana and Florida. The mortgage type with the highest default rate, adjustable rate subprime loans, is the worst in California and Florida, which together account for 33.8% of all foreclosure starts in the category. Previous data implies that if you take out the top five or six states in terms of foreclosures, the remaining states are fairly stable.
There is no doubt that there were subprime loans made in Louisiana that have gone or will go bad. It appears, however, that the levels are consistent with previous years and certainly not the epidemic level being experienced elsewhere.
The unfortunate consequence of the mistaken impression that foreclosure rates have spiked in Louisiana is that local homebuyers are delaying purchases, thinking that prices will drop as lenders take back properties. I just do not see this price drop occurring in the Interstate 10/12 corridor and I feel that homebuyers are unnecessarily delaying purchases.
With interest rates continuing to be at historically low levels and home prices returning to pre-Katrina levels, creditworthy homebuyers really have no reason to wait out the South Louisiana market. If, however, you are looking for a steal of a deal, considering picking up a foreclosure in Flint, Mich. You might want to wait until the temperature gets above freezing.
Capital Area home sales slowing down
The trend of decreasing home sales has hit Baton Rouge. September home sales were down 22% across the Capital Region, according to figures from the Greater Baton Rouge Association of Realtors Multiple Listing Service. The biggest drop was in Livingston Parish, where 105 homes were sold in September, compared with 148 in the previous year. Through the first nine months of the year, sales were down 13% to 7,532 homes sold. That compares with the 8,681 that were sold through September 2006. Local real estate experts say they've noticed the slowdown in business. Mary Garner DeVoe, a team leader for Keller Williams Realty as well as operating principal for the firm's Zachary office, says the declining sales are a result of "inaccurate pricing" instead of a sluggish economy or a depressed housing market. "The Katrina effect is winding down," she says. DeVoe says it's difficult to find houses in East Baton Rouge Parish for less than $200,000 or in the $250,000 to $350,000. But there's a glut of houses priced at more than $500,000, especially in Ascension Parish. The markets where home prices have remained steady are seeing activity, she says. One Keller Williams agent recently closed on 39 lots in Brusly. "All of the lots were presold," DeVoe says. "There's a good niche there for houses under $185,000." The stats seem to back her up. According to the MLS, there were 116 houses sold in August and September in West Baton Rouge, East and West Feliciana, Iberville and Pointe Coupee parishes, compared with 118 in the year before. --Timothy Boone
BusinessWeek: B.R. good for real estate bargains
The national housing market may be in the dumps, but there are still some markets that are good places to invest -- and Baton Rouge is one of them. BusinessWeek recently came out with a list of the best bargain markets for real estate and the Capital Region was ranked No. 2, behind Austin, Texas. The magazine notes that median home prices in Baton Rouge are still under $175,000. Over the next two years, home prices are projected to go up by 7.7% locally, because of the solid employment growth. Jim Gillespie, the chief executive for Coldwell Banker, says that college towns and state capitals are typically good places to invest "because real estate there just doesn't go down in value".
B.R. posts big jump in home prices
Home prices in metro Baton Rouge increased by 9.7% in the first quarter, according to figures released today by the National Association of Realtors. The median existing single-family home in the Capital Region was $169,400, below the Southern average of $177,800. The only Southern cities to show bigger price increases during the first quarter were Cumberland, Md. (17.1%), Beaumont-Port Arthur, Texas (16.5%), Gulfport-Biloxi, Miss. (15.7%), Oklahoma City (12.1%) and San Antonio (11.2%). Median home prices in the South actually dropped 0.6% in the first quarter, less than the national decline of 1.8%.
National economist says B.R. housing market strong
Even though there's been a steady rush of homebuilding post-Hurricane Katrina, the Baton Rouge housing market still isn't in danger of overbuilding, says Lawrence Yun, a senior economist with the National Association of Realtors. "There are more people moving to Baton Rouge, and it's becoming more of a permanent residence for the people who moved after the hurricane," says Yun, who was in town Wednesday for the Louisiana Realtors annual spring conference. The low prices in Louisiana have made it one of the few bright spots in a weak housing market; Yun says as long as jobs continue to be created in the state, homes should sell, since working families can afford them. Yun says he doesn't expect the subprime lending crunch to affect the housing market in Baton Rouge, but rising insurance rates could keep some families from buying homes. Despite the insurance pressures, Yun says the Baton Rouge real estate market should remain solid for the next two years. "All real estate is local," he says.
(Timothy Boone)
Housing, apartment market expected to stay strong The Capital Area housing and apartment market is expected to stay solid during the upcoming year, even though the number of people moving into the area has slowed down since the days after Hurricane Katrina. Ed Kramer, a residential developer, told the audience at this morning's annual Trends seminar that while the number of houses being sold has dropped, prices continue to go up and the amount of time homes are on the market is falling. "That's good news if you're a Realtor, good news if you're a developer," Kramer says. A self-described "pessimist", says the home market should remain on an upswing for the next two to three years. Wesley Moore, an appraiser, says the apartment and condo market should remain strong for the next year, while scores of new projects are built to meet post-Katrina demand. Moore says there are more than 4,000 apartment units to be built by the end of 2008. What's driving this housing growth are the estimated 33,000 to 42,000 people who have moved to the area as a result of the hurricane and the billions in ongoing industrial construction projects. BRAC CEO Stephen Moret says the demand for skilled construction workers could soon be the major issue post-Katrina, eclipsing the traffic headaches. Moret also says the Capital Area could reach 1 million residents by 2015. The Trends seminar is held annually by the Greater Baton Rouge Association of Realtors and the LSU Real Estate Research Institute as a way of letting Realtors know what's going on in the local market.
Baton Rouge housing market seen as a winner: Money magazine has forecast how home prices will change for 100 U.S. cities in the next year. Baton Rouge is predicted to see a 3.6% increase in housing prices, according to the report from Fiserv Lending Solutions. That ties the Capital Region for seventh place, along with Dallas, Birmingham and Ft. Worth/Arlington, Texas.
House price decline appears to miss B.R.
The National Association of Realtors is predicting this year there will be the first nationwide drop in home prices since the Great Depression. Tighter lending standards, a rise in foreclosures and a glutted housing market are causing the drop. Realtors' economists say the states that will be hardest hit by falling home prices include Southern California, Arizona, Nevada, Florida and Massachusetts. Walt Molony, a senior associate with the Realtors, says Baton Rouge was one of the cities to see double-digit home price hikes in January. Houston, Dallas and San Antonio have also seen home prices rise. All these cities have low inventories of unsold homes and steady job growth.
10 best places to own real estate
Even in a tough market, 63 of the 100 biggest markets are due to see a rise in 2007.
December 21 2006: 6:16 AM EST
NEW YORK (Fortune) -- Many Americans looking at the values of their homes are asking not whether it will fall, but how much. But in fact, more than half of the 100 top markets in the U.S. are slated to rise next year.
Fortune asked Moody's Economy.com and real estate valuation company Fiserv Lending Solutions to give us their take on what lies ahead for housing in the country's 100 largest metropolitan areas.
The picture in many parts of the country isn't pretty. In 2007, 36 of the 100 biggest markets are expected to see price declines. For 2008, that number rises a notch to 37.
But the housing market looks healthy in the Southeast, where the top market, McAllen Texas, is predicted to rise 8.5 percent in 2007, and another 9.8 percent in 2008. In fact, four of the hottest U.S. home markets forecast for next year are in Texas. Also on the list are two markets in upstate New York -- Syracuse and Rochester.
