Live Ascension Real Estate Information

October 9, 2008

Ascension Parish Real Estate - Market Update for September 2008

Filed under: Market Analysis, Uncategorized — admin @ 10:33 am

Ascension Real Estate Market Update - September 2008

Hurricane Gustav did not impact the Greater Baton Rouge Real Estate Market like Hurricane Katrina did in 2005. In fact, it had the opposite effect. With massive power outages effecting the Greater Baton Rouge area the sales of detached single family homes plummeted during September. The following chart illustrates the impact of Gustav upon unit sales in Ascension Parish.

Ascension Parish Home Sales

We live in interesting times. It will be interesting to see whether unit sales will rebound in October because, in addition to the effect that Gustav had on our local market, we are faced with the current financial crisis on a national level and the resultant limited availability of credit. Thus far, however, our area has not been affected as strongly as other areas of the country. In fact, the following chart illustrates that average home values in the parish have held at 2007 levels thus far during 2008.

Ascension Parish Home Prices

The following set of charts shows absorption rates for the past five years as compared with 2008 and relates that rate to current inventory levels.

Ascension Parish Home Sales Absorption and Months Supply

Sales of new homes remains depressed compared with prior years. The re-sale market has, however, remained relatively strong. While the surge in demand created by Hurricane Katrina is certainly finished, previously owned homes are still selling at pre-Katrina rates. In fact, it is a Seller’s market for homes selling below $200K. It is, however, clearly a Buyer’s market for homes in this segment that are priced above $300K.

The preceding analysis was based upon data extracted from the Greater Baton Rouge Association of Realtors MLS system. The information contained herein is presumed to be accurate but is not warranted.

As always, I welcome readers to visit my websites at www.TheHomeVendor.com or www.LiveAscension.com or www.DonAndAlishaStern.com for real estate information about and to search for homes within the Greater Baton Rouge area. Click here to search for homes.

©2008 by Don Stern - all rights reserved

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