We experienced a drawn out market slow down following Hurricane Gustav in Baton Rouge, LA. The slowing in the market seemed to have caused a slight dip in the overall average sold price of homes in Baton Rouge. I have been tracking the average monthly sold price in Baton Rouge from 2002 to present and charting the values to keep up on the current status of the market. The chart is very revealing.
First, many people think that our market prices skyrocketed after Hurricane Katrina and remained overpriced. However, that's not the case -- as the chart shows. Hurricane Katrina caused a spike that rapidly dropped right back down in just a few months. Following Katrina, the national economy started to experience a downturn as housing values in major markets across the nation plunged. From the media, the public perception was that housing values were plunging everywhere - including Baton Rouge. That, too, was a myth. Yes there are areas around the country experiencing plunging values, but Baton Rouge was largely insulated from the effects of the failing economy. This too can be seen in the chart.
Baton Rouge did experience a slow down during 2009. But recently real estate activity has picked up. Reports are coming in from local lenders and agents that they are busy. But now, we can also see the values reflecting the upswing on the chart. You'll notice what appears to be a fairly stagnant rate in the values for 2009, and an uptick for Feb 2010. I've been telling people that I'm expecting a great 2010 and February is evidence of that possibility. No one can predict the future - not even me - so I think it's important for sellers to stay ahead of the market and to be realistic on their pricing if they expect to sell their homes. Buyers, now is not the time to try to be overly lowballing sellers on your offers. Insulting the sellers, will not accomplish anything. And, if the market really is taking an upswing, you need to be realistic on your offer prices. If everyone is realistic, the market will continue to move in a positive fashion and provide an improvement in the overall economy for Baton Rouge.
For your review, here's my chart of Baton Rouge real estate values. Remember, this is NOT a valuation of your home. It's an average of all homes sold all over Baton Rouge.
