http://www.denhamspringsappraisers.com/ – Livingston Parish FHA Appraisers Video: 3 New Schools Opening In Livingston Parish
The Advocate Newspaper is reporting on 3 New Schools Openining In Livingston Parish – Video Interview With Bill Spear
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http://www.batonrougefhaappraisers.com/ – Greater Baton Rouge Real Estate Dropped From Distressed Cities List By Mortgage Insurance Company
On July 20, 2009 The Baton Rouge Business Report reported that Genworth Mortgage Insurance Corp. dropped Baton Rouge from it’s declining and distressed cities list, which could lead to looser down payment standards locally. The link to the article is here.
http://www.batonrougefhaappraisers.com/ – LA Realtors Report Good News For Baton Rouge Real Estate In July 2009
LA Realtors reports Pending Home Sales Record Fourth Straight Monthly Gain, as directly quoted:
“Pending home sales show a sustained uptrend, rising for four consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity, according to the latest survey. The Pending Home Sales Index increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April, and is 6.7 percent higher than May 2008 when it was 85.0. The last time there were four consecutive monthly gains was in October 2004.
Lawrence Yun, NAR chief economist, cautions that there could be delays in the number of contracts that go to closing. “Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions,” he said. “Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards. Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.” For more information, see the complete NAR news release.”
http://www.batonrougerealestateappraisers.net/ – Greater Baton Rouge Townhome and Condo Market Still Faces Challenges in 2009
I recently performed an appraisal in the gated townhome development, Bromley Townhomes in Baton Rouge 70810, which was further evidence to me that the Post Katrina Very High Pricing and overbuilding of Condos and Townhomes (not to mention too many condo conversions) across Greater Baton Rouge will take some time to absorb and correct. And, the correction is not pretty.
Bromley Towhomes is an upscale, gated townhome development within 1/2 mile of Perkins Rowe where in 2004 to 2006, new 2 bedroom 1,460sf units sold between $189,500 up to $204,900. Legal News records show that resales of the same units have been from $150,000 up to $175,000. In fact, the differences in resale prices were -23%, -12%, -17% and -11%. The unit appraised was valued at only 79% of original sales price. Marketing time periods for these resales was from 80 days up to 899 days on the market. And, there are 2 listings that have been on the market since mid 2008, one of these listings is finally pending after the price was reduced to $160,000. If it sells at 97% List-To-Sales-Price-Ratio, it will sell for $155,200, a difference of -21% off original price. Specifically for these 1,460sf 2 bedroom Bromley Townhomes, a “SMART Appraiser Software” FNMA 1004 MC (market conditions) Study, a much more narrow “Sub-Market” study, showed declining market values of -5.44% since 7/2008, an 8.4 month supply of competing listings and between 29 to 45 competing listings.
A recent search in MLS Areas 52, 53, 61, 62 shows a total of 620 current listings (active, contingent or pending) of Townhomes and Condos – certainly a large number that will take some time to absorb. With some short sales of attached units taking place in this market, it’s an opportunity for investors to buy low hoping to seller higher in the years to come.
CAUTION……..When Purchasing A Condo Or Townhome!
Notes Of Caution Before Purchasing In Any Condo Or Townhome Development
1.) Make Sure The Managing Agency Is Well Intact (that the development is managed well with a good paper trail).
2.) That ALL Association Dues Are Fully Paid (Review The “Current” Budget with a real estate professional that understands and can interpret). Make sure there are ample reserves built up to handle the development into the future. This is brought up to help explain that appraisers across the U.S. are being educated and directed to request documentation on Condo AND Townhome budgets and that IF the budgets are not satisfactory or not funded adequately, to discount the value(s) in those developments. And, my experience has been that these are the developments with some short sale activity – absentee owners not paying their dues. This is a major problem in the overbuilt markets like the State of Florida.
3.) Just because the listing price is lower than the 2006 offering price doesn’t necessarily make it a good deal in 2009. The chart below shows a -10.25% decline in sales prices/market value and represents 955 attached 2 bedroom sales from 1/1/2006 to July 2009, from $100,000 to $200,000 in MLS Areas 52, 53, 61 and 62. Also note that it took 3.5 years to absorb these 955 units or 273 units per year. With 620 units on the market, a portion priced higher than $200,000, it could take 2.5 to 3 years to absorb these excess units. AND, this doesn’t include the large number of units taken off the market that are now rentals because they couldn’t be sold. Again, check out the management and current budget before taking for plunge.
Author’s Bio:
Bill Cobb, CREA, is Greater Baton Rouge’s favorite and most reputable home appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A home appraiser with 18 years experience, Bill Cobb brings a wealth of knowledge to the table as a home appraiser.
Bill’s company, Accurate Valuations Home Appraisal 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
http://www.batonrougerealestateappraisal.com
http://www.batonrougerealestateappraisal.com/ – Baton Rouge Business Report is Reporting Greater Baton Rouge Home Sales Decline 19% First 6 Months Of 2009
The Baton Rouge Business Report is reporting this morning that area home sales were down 19% for the first 6 months of 2009. The link to the news on 7/13/2009 is at: http://www.businessreport.com/archives/daily-report/2009/jul/13/1077/ and here’s a snippet as directly quoted:
“Baton Rouge area home sales are down 19% through the first six months of 2009 as the effects of the national recession continue in the area. According to figures from the Greater Baton Rouge Association of Realtors Multiple Listing Service, there were 3,298 homes sold in the metro region through June, compared to 4,083 through June 2008. The average sale price was down 6.5%, from $207,072 in 2008 to $193,548. Local real estate officials say the housing market remains fairly strong because employment remains high locally. But tight credit markets and consumer unease are causing a slowdown in sales. The number of houses sold in East Baton Rouge Parish was down 21%, from 2,500 through the first half of 2008 to 1,965 through the end of last month. Livingston Parish saw a bigger drop in overall sales, with 509 homes sold as of June, compared with 670 through the first half of 2008. Ascension Parish had the smallest drop, with the number of houses sold falling by 4.8%, from 670 to 627. In the other category, which includes MLS sales in West Baton Rouge Parish and the Felicianas, there were 197 homes sold as of June, compared to 254 through the first six months of 2008.”
http://www.denhamspringsappraisers.com/ – Denham Springs Homes Mortgage Rates Drop This July 2009 Week
According to the Friday NAR Realtor Email, Mortgage Rates Dropped This Past Week.
“Interest on 30-year fixed mortgages, 15-year fixed loans, five-year adjustable-rate mortgages, and one-year ARMs all fell this week, according to Freddie Mac.
The average on 30-year financing slipped to 5.2 percent from 5.32 percent a week ago.
The 15-year mortgage declined to 4.69 percent, down from 4.77 percent.
Five-year ARMs were down to 4.82 percent from 4.88 percent.
One-year ARMs fell to 4.82 percent from 4.94 percent.
Source: Los Angeles Times (07/10/09)”
The Link is at: http://www.realtor.org/RMODaily.nsf/pages/News2009071004?OpenDocument
Will Cap & Trade ‘Green’ Turn To RED For Home Appraisers? http://tiny.cc/mw8MQ
http://www.denhamspringsappraisers.com/ – June 2009 NAR Pending Numbers Could Be Excellent News For Denham Springs Real Estate
The Louisiana Realtor E-News Digest is reporting some fantastic news about Pending Home Sales Rising Again. The source of the news was the NAR (National Association of Realtors) and here’s a snippet of the news:
“Pending home sales show a sustained uptrend, rising for four consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity, according to the National Association of REALTORS.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in May, increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April, and is 6.7 percent higher than May 2008 when it was 85.0. The last time there were four consecutive monthly gains was in October 2004.”
The link to the La Realtor E-News Digest is at http://www.larealtors.org/news/default.asp
This continues the trend toward positive news for the Denham Springs and Livingston Parish Housing Homes Market.
