There’s so much confidence in this neighborhood that a buyer, in the midst of a national recession, paid $791,500 or $154/sf for 6353 Double Tree Drive, see photo below. 6016 North Shore Drive sold for $464,000 in 1/2011 for $157/sf. A home on North Shore Ct is under contract for an unknown price and listed for $529,500 or $159/sf. Of course, these are homes on the lake and are the exception and not the typical sales price. For 2011, the median sales price for the year is $337,319 or $113/sf.

If there’s any negative report, it’s the 12% REO or sold foreclosure rate or 17 out of 140 total sales.

This home at 5741 Lake Shadow Drive sold for $355,000 or $129/sf in 6/2011

Entrance Sign

6353 Double Tree Drive (Private Entrance)

From 01/01/2006 to 08/28/2011, GBRMLS is showing 17 REO or Foreclosure sales in The Lakes At White Oak Subdivision out of 140 total sales or about 12%, which is fairly high for East Baton Rouge Parish.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2006 to August 28, 2011. This information was extracted on 08/28/2011. YES, this appraiser does have the permission of GBRMLS to use the chart above Subdivision Price Trends Report!

Author: Bill Cobb, Appraiser with Accurate Valuations Group

Tags: Baton Rouge Real Estate, Baton Rouge Homes, Baton Rouge Housing, Baton Rouge Home Appraisers, Baton Rouge Real Estate Appraisers, East Baton Rouge, Greater Baton Rouge, Baton Rouge Home Appraisal, Home Appraisals, Baton Rouge Realtors, Baton Rouge Real Estate Agents

Last week, David Jacobs, with the Baton Rouge Business Report, reported a startling study about how high and out of sync Greater Baton Rouge housing prices are when combined with transportation. The article, Baton Rouge-area household spends 52% of income on housing and transportation, was published on 8/9/2011. In the article or study, the CNT recommends spending no more than 45% and that combining local housing prices with true transportation costs provides “an accurate measure of of the true affordability of housing”.

Other Studies. We also know that according to Core Logic, Baton Rouge is in its’ 9th straight month of home price correction. We also know from the 24/7 Wall Street study that Baton Rouge made America’s 10 Sickest Housing Markets list this month.

We’re In For More Correction. It would appear, based on these 3 studies, that Greater Baton Rouge Housing is in for more correction.

This is my reply below to David Jacobs submitted on 8/10/2011:

I read your Business Report Weekly and wanted to thank you for reporting on this. This has really helped me. Just 3 weeks ago, I was ready to go for a visit to the LSU Real Estate Research Department with similar questions as to where should GBR Housing be priced relative to local incomes? I think this is a foundational question going forward and might possibly shed some light on where the bottom might be in local housing prices in the future. If GBR housing is out of proportion, by how much or by what percentage? Are the current still nose-bleed high housing prices sustainable? Obviously if we asked this question in 2007 from some of the Zachary and ASC $300,000 neighborhoods, the answer today is probably not. $140/sf for new homes wasn’t sustainable across the board. This is why builders like DSLD Homes are having such success……because the insanity in local new home prices from 2006 to 2008 was never sustainable based on local incomes.

As a local home appraiser, I’ve been scratching head all along here wondering WHY local housing is so expensive…..in Louisiana. Baton Rouge has been a wonderful place to grow up and now raise my family, but we’re not California with almost a perfect climate where one would expect high prices. Why are home prices so high here….still in 2011? Even with the modest correction, it would certainly seem that we’re still at nose bleed levels on the pricing of some local housing relative to local incomes. I scratch my head monthly on this issue.

Please understand, I’m not a conservative appraiser. Whatever the housing market’s decision has been, in the form of home sales, I reflect in my reports. However, we’re now about 9 months into this local correction and I’m beginning to think that locals are finally coming to their senses on what they pay for local housing relative to local incomes. There are A LOT of sellers in denial right now, and Hurricane Katrina didn’t help with that at all. It only made it worse. Today, some local Real Estate Agents are hiring me for my Listing Appraisals on their listings that have been on the market for months now, they know are overpriced and they bring me in to show the seller the reality of the local numbers in comparison to sellers perception that their home is worth more.

The chart below doesn’t indicate a huge problem in GBR housing, not like some sour markets in the USA where there’s 3-4 years of supply. However, talk to most appraisers locally and you’ll find that we’re checking “Slow” market for growth or sales and in some subdivision/markets, there’s been such few home sales that it’s become very difficult to complete appraisals for the lack of comps sold within 3 to 6 months, especially under $125,000.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of August 2010 to July 2011. This information was extracted on 8/10/2011. YES, this appraiser does have the permission of GBRMLS to use the chart above.

These are some of the things I’ve been thinking about in GBR Housing since 2007 and going forward. Are we fairly priced or still way out of balance? Yes, the market is correcting back to some sense of sanity…..finally…..and how many more months or years will it be till we reach equilibrium (sanity) based on local incomes.

New Homes Are Still Priced High. I still see a local builder and have them say something like, “This market is killing me…when the market coming back?!”. And that builder just doesn’t get it….that the post Hurricane Katrina builder’s market isn’t coming “back” in terms of such exaggerated pricing. The odd thing here is the LHBA (La Home Builders Association) would probably tell you today that we’re too low for their builders to make a decent profit on local home building. What they experienced in 2006-2008 (unsustainable pricing) and expect in the future just wasn’t/isn’t sustainable.

This is why I believe that new TND in Zachary recently announced will take a decade or more to build out because $140/sf to $200/sf just isn’t what local incomes will support and until local builders understand this, they’ll be more developments started and then finished by DSLD Homes. This is also why I believe that new Wyndam Estates development in Denham Springs with 1600sf homes on “tiny lots” in $190′s or $120/sf will also take much, much longer than expected to fill and should be filled with homes in the $150s to $160s. It’s about market economics and local incomes and the local economics, at least outside of Baton Rouge itself, is in favor of DSLD Homes pricing. Those builders and developers that fail to understand local incomes will continue to have their fledgling developments sold to and finished by developers like DSLD Homes after spending millions to break the dirt.

Bill Cobb, Appraiser

According to the University Hills Civic Association website, “University Hills has one of the widest entrances of any subdivision in Baton Rouge. And, it has the one of the oldest and most historic live oaks on public property in the city. The larger Centennial oak has been estimated to be nearly 300 years old. (In 1979 , it was designated “Legacy Oak” 0002 by the City-Parish Beautification Commission, meaning that it was the second oldest live oak on public property in East Baton Rouge.) The other oak, on the corner of Delgado and Tulane Drives, is approximately 200 years old.”

Legacy Oak Designation Above!

The Homes Of University Hills Below Ranging in sizes from 768sf up to 4,168sf

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/

Can Real Estate Agents Talk To Home Appraisers During A Purchase Appraisal? In short, they absolutely can!

HVCC was retired yet the policies it set in motion remain in motion. Now, Dodd-Frank’s Appraiser-Independence Legislation is the rule of the day and there is a lot of confusion out there between both Home Appraisers and Real Estate Agents on communication! I just had an Agent this week contact me complaining about an Appraiser that came in short on an appraisal because the Appraiser didn’t understand the home on the river had 2 boat slips instead of just 1. This Agent didn’t understand that he could have spoken with the appraiser at the beginning to clear all facts up about this property.

The November 8, 2010 article in Live Valuation Magazine written by Larry Disney, Change to Appraisal and Appraiser Regulation Has Arrived – Are You Ready? sheds some light on this topic. The language in the new Dodd-Frank legislation appears to help the communication process between Agents and Appraisers and Sellers and Borrowers. For example, in this article, Mr. Disney states,

“The above language is not meant to imply that mortgage lenders, mortgage brokers, mortgage bankers, real estate brokers, appraisal management companies, employees of appraisal management companies, consumers, or any other person with an interest in a real estate transaction cannot ask an appraiser to consider additional information, including comparable sales; provide further detail, substantiation, or explanation for an opinion of value; and correct errors in the appraisal report.“

It sounds to me like Agents can communicate with home Home Appraisers.

I asked two (2) nationally known Home Appraisers these questions below:

At what point can the RE Agent talk to the appraiser regarding the purchase appraisal?

*When the initial appraisal inspection is setup?
*After the appraiser has inspected the property?
*If only at the initial setup, then can that agent provide their comps / support then to avoid an appeal later?
*What’s your policy or understanding on this?

*Was I wrong in what I’ve told this agent that asked me below:

I as an appraiser have always considered there to be 3 Real Estate Professionals in the deal: Listing Agent, Selling Agent and Appraiser. To avoid appeals, I ask for the Agent’s comps at the time I set the inspection up. Some Agents are offended that I do this because they take it as if I’m questioning them. I’m not questioning, just trying to give them their opportunity to “talk” to the appraiser before I go out for the inspection and avoid an appeal later. I think you should be proactive with Appraisers and take as much control of your deals as possible……and that’s done initially when the appraiser calls to set up the appraisal inspection. It’s a myth that Agents can’t talk to Appraisers, it’s just that the communication must take place before the appraiser inspection and not after the inspection.

Their two (2) responses I received are below:

In summary, one Appraiser stated that there has been a lot over reaction and that they try to talk to the Agents of most deals. If a value issue arises, the appraiser said he contacts them for their data, which could be before or after the inspection, without letting on that there is a value issue.

Washington State Appraiser, Dave Towne, Said:

“I’m with you on this. I sometimes will ask agents for their ‘cma’, saying “I want to be sure I understand how you priced this property at the time of listing. I want to be sure I don’t miss any properties that you may have considered.” I do this when I determine the price is too high based on comps I pre-research prior to inspecting.

Often, they don’t even have those in their file, and just provide listings at inspection time that support the price, but that are not necessarily comps from our perspective.

An appraiser has to be careful about accepting carte blanche properties provided by someone financially connected to the deal. But I don’t think trying to understand the preliminary pricing process is out of line. However, after the inspection and the report is complete/submitted, that’s not the time to complain – especially if the agent was uncooperative at the start.

We are supposed to ‘verify’ every sale. That involves communication with the players involved prior to report completion. Unfortunately agents sometimes have an adversarial attitude, and appraisers don’t do an effective job discussing this. I think you do, based on your info.

And anyone connected to the assignment can discuss aspects of the property with the appraiser in advance of report submittal, as long as there is no attempt to influence the value.”

What does the Home Appraiser’s Client Instructions Say About This Topic – The AMC’s or Appraisal Management Companies?

I reviewed three (3) recent appraisal orders for home purchases. These Appraisal Orders were 8 pages, 3 pages and 4 pages in length. None of these orders stated the Appraiser couldn’t communicate with the Agent. Two sets of the instructions read,

“Purchases require that you review the sales contract and state in report that contract was reviewed. Obtain contract from Agent/Contract or Contact AMC for help. Contract must be fully executed.” Fully executed means the contract must have ALL signatures or you the Agent hold up the deal!

“For Purchase transactions, if AMC does not provide you with the sales contract governing the transaction, you must contact us or the borrower/REALTOR to obtain it.”

Conclusion. It appears from ALL sources reviewed that Agents can communicate with Appraisers during a purchase transaction. My advice as a Home Appraiser is to provide the Appraiser with a list of relevant features, upgrades, your Sketch showing your measurements and a list of your supportable comps used to market the property. By providing your comps up front, you are avoiding an appeal after the appraisal is completed, which will also help speed the closing process.

Why Did I just state, “your Sketch showing your measurements”? Because in the month of May in my market, one deal did not appraise and another deal was very, very close simply because the Agents either did not measure the homes, simply copied a previous incorrect MLS listing or measured them incorrectly per the National “ANSI” Standards. The MLS Listings were incorrect by 173sf and 215sf. The 173sf error was in a market where homes were selling in the $121/sf range. If you have your own sketch, you can be sure that your listing is the right size, priced properly and be less questionable in terms of the appraisal.

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/

Washington State Appraiser, Dave Towne, recently offered tremendous value to home appraisers by providing a copy of a list of the Top 12 FDIC Appraisal Deficiencies, see list below. In case you are not aware, the FDIC, in order recoup loses, is filing suit against AMCs (Appraisal Management Companies) and individual appraisers for questionable appraisal work that could have led to mortgage defaults. FDIC is seeking hunreds of millions of dollars in these suits.

Dave said, “Appraisers….

The FDIC has recently named a major nationwide AMC in a suit involving hundreds of defaulted properties**, claiming the AMC was deficient in the way they reviewed original appraisal reports. The suit has not gone to trial yet.

Included with the suit legal documents was this list that shows issues of concern in the original appraisal reports.

This would be a good list to use to review your own reports prior to submittal.

I personally found much satisfaction in #4 above about the applying “not reasonable, large unsupported adjustments for intangibles such as view, etc.” See this water front lot photo below.

My reply to Dave follows….

Thank you so very much, Dave!!!

I LOVE YOUR #4, about applying non-supportable adjustments for “view”. There is no such adjustment and I don’t understand why FNMA even has that in the grid. Dave, when a buyer closes on a lake lot, do they have “2″ closings, one for the site value and another separate closing for the lake view? No they don’t….and that would be insane wouldn’t it? There is no such thing as a supportable “View” adjustment. The entire value in a lot is the “Site” itself and all of the attributes of that site: land, size, view, historic trees, etc.. It all makes up the “Site Value”. And, based on what you’ve sent us, I’m not the only appraiser or regulatory agency who polices appraisers who thinks this way!

A recent home appraisal in and analysis of Lakes At Oak Grove Subdivision revealed this interesting finding. From 2008 to 2011, the median sales price has declined from $237,800 to $227,800 to $229,700 to now $235,000 into 2011 based only on 1 sale. So, 2008 was the post Hurricane Katrina “High” year followed by 2 years of declines. 2011 at $235,000 is higher than 2009 and 2010. Again, 2011′s $235,000 is only based on 1 sale while 2010′s $229,700 was based on 5 sales. The Listing-To-Sales-Price-Ratio at 98% is the highest since 2007.

TWO MLS CHARTS OF ALL HOME SALES SINCE 2005

The Chart below shows all home sales since 2005. The median sales price is still down -1.6% since the high in 2007. The median sales price has risen 4% since May 2010. But Again, this chart’s is greatly weighed upward based on this one (1) 2011 sale of $235,000.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2005 to May 8, 2011. This information was extracted on 5/8/2011. 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/

The Collateral Valuation Report (CVR) is a desktop application program that is capable of valuing properties as accurately as a URAR report, and can be delivered to you in about 24 hours. This report is designed to be completed by a certified appraiser who has local area knowledge of the neighborhood.

This appraisal report is ideal for:
* Replacing BPOs
* HELOCS
* Portfolio Analysis
* Reviews
* Litigation

CVR integrates public records, MLS, flood, imagery and other relevant data directly to the report. In addition, the appraiser can define the neighborhood and use the most sophisticated analytics available. Adjustments are supported, comparable sales and listing are ranked and scored and ultimately, all of the data is available for an appraiser to interactively provide the most supportable valuation solution. The CVR is an affordable valuation solution. Better than a BPO, Less than a URAR.

The Summary Page Of A Sample CVR Report Is Below! A COMPLETE SAMPLE CVR REPORT is available to review at this link!

HOW DOES ONE ORDER A GREATER BATON ROUGE CVR REPORT?

Tags: CVR, Collateral Valuation Report, Comp Cruncher, Baton Rouge Home Appraisal, Baton Rouge Home Appraisers, Baton Rouge BPO, Baton Rouge BPOs, Baton Rouge HELOC

In Missouri Acres in 2009-2010, the median sales price for the 5 GBRMLS sales was $238,000 with an average sold price of $119.64/sf. The low to high sales prices were $219,000 to $258,000. However, this market is very slow and the days on the market it takes to sell a home has been increasing over the past two (2) years above the $225,000 price ranges.

West Baton Rouge Real Estate Appraisers is an information source provided by local West Baton Rouge Parish Home Appraiser, Bill Cobb, and Accurate Valuations Group West. Bill has 20 years experience as a residential appraiser and updates his local network of sites weekly with reports, videos and audio reviews of local housing market conditions! Some of the videos on this site are housing market updates provided by Bill himself and others are videos of local homes for sale by area Agents.

http://www.batonrougerealestatebuzz.com/ is also a helpful resource for local West Baton Rouge Real Estate Buzz!

While Baton Rouge Real Estate Trends Dot Net reports on the broad or macro Greater Baton Rouge Housing Markets, Baton Rouge Market Metrics Dot Com reports on the individual subdivisions within the four (4) local Parishes that make up the Greater Baton Rouge Housing Market.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2009 to December 31, 2010. This information was extracted on 02/13/2011.

The Early Learning Center, located on the Rollins Road extension, is the school for the district’s pre-kindergarten students.

Solds In Village St George Subdivision from 1/2010 to 12/31/2010 revealed:

Average Sales Price: $125,857 ($126,909 in 2009)
Average Sold Price Per Sq. Ft.: $89.61/sf ($86.39/sf in 2009)
Median Sold Price: $129,000 ($123,000 in 2009)
Number of Sales: 21 (11 in 2009)
Average Number of Days On Market: 94 (67 in 2009)
Low To High: $79,000 to $160,000
Number of Distressed Sales Noted In MLS: “3″
Current # Listings: 11, 3 Are Distressed Listings
Current Listings Price: $89,900 to $149,900 or $61/sf to $120/sf

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2007 to December 31, 2010. This information was extracted on 1/31/2011. YES, this appraiser does have the permission of GBRMLS to use the chart above Subdivision Price Trends Report!

Tags: Appraisers Baton Rouge, Appraisers in Baton Rouge, Baton Rouge Estate Minute, Baton Rouge Garden District, Baton Rouge Home Appraisers, Baton Rouge Homes, Baton Rouge Housing, Baton Rouge Housing Market, Baton Rouge Real Estate, Baton Rouge Real Estate Trends, Baton Rouge Realtor, Baton Rouge Realtors,

Solds In Monticello Subdivision from 1/2010 to 12/31/2010 Home Ages 16-20 +revealed:

Average Sales Price: $133,350 ($154,573 in 2009)
Average Sold Price Per Sq. Ft.: $75.09/sf ($90.92/sf in 2009)
Median Sold Price: $145,000 ($150,500 in 2009)
Number of Sales: 12 (12 in 2009)
Average Number of Days On Market: 79 (130 in 2009)
Low To High: $82,000 to $168,500
Number of Distressed Sales Noted In MLS: “4″
Current # Listings: 12, 6 Are Distressed Listings
Current Listings Price: $64,900 to $185,000 or $50/sf to $96/sf

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2007 to December 31, 2010. This information was extracted on 1/301/2011. YES, this appraiser does have the permission of GBRMLS to use the chart above Subdivision Price Trends Report!

Tags: Appraisers Baton Rouge, Appraisers in Baton Rouge, Baton Rouge Estate Minute, Baton Rouge Garden District, Baton Rouge Home Appraisers, Baton Rouge Homes, Baton Rouge Housing, Baton Rouge Housing Market, Baton Rouge Real Estate, Baton Rouge Real Estate Trends, Baton Rouge Realtor, Baton Rouge Realtors,

Solds In Park Forest East Subdivision from 1/2010 to 12/31/2010 revealed:

Average Sales Price: $109,878 ($133,242 in 2009)
Average Sold Price Per Sq. Ft.: $72.47/sf ($83.45/sf in 2009)
Median Sold Price: $135,000 ($135,000 in 2009)
Number of Sales: 11 (12 in 2009)
Average Number of Days On Market: 95 (130 in 2009)
Low To High: $39,900 to $145,000 (Yes, A Home Sold For $39,900)
Number of Sold REO/Foreclosures Noted In MLS: “5″
Current # Listings: 8, 3 Are Distressed Listings
Current Listings Price: $89,900 to $147,400 or $59/sf to $98/sf

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2009 to December 31, 2010. This information was extracted on 1/31/2011. YES, this appraiser does have the permission of GBRMLS to use the chart above Subdivision Price Trends Report!

Tags: Appraisers Baton Rouge, Appraisers in Baton Rouge, Baton Rouge Estate Minute, Baton Rouge Garden District, Baton Rouge Home Appraisers, Baton Rouge Homes, Baton Rouge Housing, Baton Rouge Housing Market, Baton Rouge Real Estate, Baton Rouge Real Estate Trends, Baton Rouge Realtor, Baton Rouge Realtors,

As a State Certified Home Appraiser in Louisiana and FHA/HUD approved appraiser since 1996, I can validate that FHA Home Loans have strict requirements of operational mechanical systems placed upon the home appraiser to inspect and verify. While home appraisers aren’t necessarily “home inspectors”, FHA home appraisers are required to verify that mechanical systems are functioning properly and that they would appear to have a reasonable life left.

HUD or FHA Home Appraisers are expected to be well versed on 2 major manual plus keeping up the “Mortgagee Letters” that offer amendments and updates to HUD policy. In fact, the statement many lenders want placed in reports is, “Condition: Overall Condition is: Average. No major repairs or functional inadequacies. MEETS FHA/RD MINIMUM STANDARDS for existing dwellings as outlined in HUD Handbooks 4150.2 and 4905.1 Requirements and all applicable Mortgage Letters). SFR Dwelling was determined to be decent, safe and sanitary. Subject is connected to public or community sewer. Mechanical Systems were on and operational. Attic was inspected and appears to individually meet FHA requirements.” No, the lenders don’t tell us to use “Average” but to state a condition rating. And, FMHA or Rural Development and VA loans also have these same requirements as well.

So, can a inoperable garbage disposal hold up an FHA loan closing until repaired? There are four (4) national HUD HOC’s or Homeownership Centers in the U.S.. For Louisiana, the HUD HOC is located in Denver, CO. I called the Denver HOC Appraiser Tech Support Department at 1-800-543-9378 for a verifiable answer to this question. I spoke with “Gary” and he said that NO, the inoperable garbage disposal WILL NOT HOLD UP A CLOSING because FHA doesn’t require appliances to be installed in homes. Gary said that includes Range/Ovens, Dishwashers or Garbage Disposals. Gary said that this is a “condition” issue and that FHA appraisers should apply deductions to the subject property if the comps used have appliances and superior functioning appliances.

BEFORE YOU BUY THAT HOME, GET A HOME INSPECTION!

In the early 2000′s with FHA’s introduction of the HUD Form “HUD-92564-CN” For Your Protection: Get A Home Inspection, FHA made the distinction between the home appraiser and the home inspector and strongly recommended home buyers obtain a home inspection. This appraiser also recommends you obtain a home inspection as well to know the true condition of mechanical system and a more accurate remaining economic life. Home appraisers are fairly limited on their knowledge of such systems but home inspectors are trained to know these systems and know them very well.

Just remember that if you as a home buyer receive notice that there are FHA mandated repairs on the home being purchased, know that this is for your benefit and that generally the seller will be required to repair these items prior to closing.

Bill Cobb, with Accurate Valuations Group, is a long time FHA Home Appraiser within the Greater Baton Rouge housing market. Bill can be contacted at 225-293-1500 or info@accuratevg.com .

First Garbage Disposal Source Photo: http://www.thehandyblog.com/disposal.php

Second Garbage Disposal Source Photo: http://appliancefactory.com/

Country Club Estates is conveniently located near the center of Baton Rouge, near Bocage Area and generally within the Baton Rouge Garden District!

Solds In Country Club Estates Subdivision from 1/2010 to 12/31/2010 revealed:

Average Sales Price: $155,650 ($154,000 in 2009)
Average Sold Price Per Sq. Ft.: $120.28/sf ($115.78/sf in 2009)
Median Sold Price: $158,500 ($155,000 in 2009)
Number of Sales: 5 (3 in 2009)
Average Number of Days On Market: 80 (48 in 2009)
Low To High: $131,900 to $177,000
Number of Sold REO/Foreclosures Noted In MLS: 0
Current # Listings: 3, 0 Are Foreclosures
Current Listings Price: $134,900 to $299,000 or $118/sf to $132/sf

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2009 to December 31, 2010. This information was extracted on 1/14/2011. YES, this appraiser does have the permission of GBRMLS to use the chart above Subdivision Price Trends Report!

Tags: Appraisers Baton Rouge, Appraisers in Baton Rouge, Baton Rouge Estate Minute, Baton Rouge Garden District, Baton Rouge Home Appraisers, Baton Rouge Homes, Baton Rouge Housing, Baton Rouge Housing Market, Baton Rouge Real Estate, Baton Rouge Real Estate Trends, Baton Rouge Realtor, Baton Rouge Realtors, Country Club Estates, 70809

Overall, there were nine (9) 2010 sales which brought the median sales price higher than 2009′s $304,400 and higher than 2008′s $294,500. In 2010 as compared to 2009, the Average Sales Price has declined 7.8%, Median Sales Price increased 3.5% and Average Sold Price Per Sq. Ft. declined $4.48/sf. There is one (1) foreclosure noted on Lake Stream Drive. And, that unfinished home that sat vacant for about 1 year or more was sold in 2010 for $148,000, an MLS sale, and is being finished. NOTE: If you are considering purchasing a home in Bellingrath Lakes and don’t want to pay too much, I would advise one to order a “Pre-Purchase Appraisal” from Accurate Valuations Group as there are at least two (2) current listings in Bellingrath Lakes well above market support.

Solds In Bellingrath Lakes Subdivision from 1/1/2010 to 12/31/2010 revealed:

Average Sales Price: $293,700 ($318,550 in 2009)
Avg Sold $ Per Sq. Ft.: $119.27/sf ($123.75/sf in 2009)
Median Sold Price: $314,900 ($304,400 in 2009)
Number of “MLS” Sales: 9 (6 in 2009)
Average Number of Days On Market: 102 (188 in 2009)
Low To High: $155,000 to $162,000
Number of Sold REO/Foreclosures Noted In MLS: 1
Current # Listings: 4, 0 Are Foreclosures
Current Listings Prices: $285,000 to $379,000 or $120/sf to $149/sf. NOTE: The $142/sf listing on Bellingrath Lakes Ave, not on the lake, is grossly overpriced for this market based on the numbers or support above.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2009 to December 31, 2010. This information was extracted on 1/10/2011. Yes, this appraiser has obtained permission from GBRAR MLS to use the above pricing chart!

Tags: Baton Rouge Homes, Baton Rouge Housing, Baton Rouge Housing Market, Baton Rouge Real Estate, Baton Rouge Real Estate Housing, Baton Rouge Real Estate Trends, Central City, Central La, Greenwell Springs, Bellingrath Lakes

Overall there really isn’t much to report on in 2010. Per GBRAR MLS, there was only 1 2010 sale (and only 1 MLS sale in 2009) in Fountain Hill Subdivision for $383,000 on 8/31/2010 for 3,625sf. This home sold for $105.66/sf as a foreclosure. The photo of this home is directly below. The bank took this home back for a mortgage balance of $344,000 and still sold it for a substantial profit in this market. This appraiser has performed two (2) foreclosure appraisals in Fountain Hill Subdivision in 2010.

My search of 2010 Legal News for Fountain Hill Subdivision also revealed another foreclosure for $246,666 in March 2010. Also per Legal News, there was a lot sale for $79,000 for Lot 60 in 12/2010.

The trend is looking up for 2011 for Fountain Hill Subdivision with one (1) 2011 sale for $450,000 for only 3,184sf or $141.33/sf. Given the past 2.5 years of lackluster and foreclosure activity within Fountain Hill, this was a very, very high sales price for Fountain Hill specificially and shows strength within the Prairieville market. It’s also note here that this was a “Cash Sale” where an appraisal may or may not have been procured to know the true value. This home was on the market for a total of 668 days in two (2) seperate MLS listings. In any event, this is a positive for Fountain Hill, for Northern Ascension Parish and for the Prairieville market in general.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2009 to December 31, 2010. This information was extracted on 1/11/2011. Yes, this appraiser has obtained permission from GBRAR MLS to use the above pricing chart!

Tags: Ascension Parish Appraisers, Ascension Parish Home Appraisers, Ascension Parish Real Estate, Ascension Parish Real Estate Appraisers, Prairieville LA, Fountain Hill, 70769

Solds In Manchac Place from 1/1/2010 to 12/31/2010 revealed:

Average Sales Price: $292,618 ($290,000 in 2009)

Average Sold Price Per Sq. Ft.: $99.34/sf ($91.14/sf in 2009)

Median Sold Price: $293,900 ($290,000 in 2009)

Number of Sales: 11 (13 in 2009)

Average Days On Market: 125 (147 Days in 2009)

Low To High: $247,000 to $356,900

Number of Sold REO/Foreclosures Noted In MLS: 2 For $263K and $275K

Current # Listings: 7, 1 Foreclosure, 1 Short Sale

Current Listings Prices: $204,900 To $325,000, $85/sf to $122/sf

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2009 to December 31, 2010. This information was extracted on 1/11/2011. YES, this appraiser does have the permission of GBRMLS to use the chart above Subdivision Price Trends Report!

Tags: Ascension Parish Appraisers, Ascension Parish Real Estate, Baton Rouge Real Estate, Ascension Parish Real Estate Appraisers, Ascension Parish Home Appraisers, Prairieville La Home Appraisers, Prairieville La Real Estate Appraisers, Manchac Place

Solds In Greenwood Estates Subdivision from 1/1/2010 to 12/31/2010 revealed:

Average Sales Price: $111,483 ($147,833 in 2009 or -24.59%)
Avg Sold $ Per Sq. Ft.: $64.07/sf ($89.31/sf in 2009 -28.26%)
Median Sold Price: $105,500 ($148,000 in 2009 -28.7%)
Number of “MLS” Sales: 6 (3 in 2009)
Average Number of Days On Market: 136 (218 in 2009)
Low To High: $64,000 to $159,900
Number of Sold REO/Foreclosures Noted In MLS: 3
Current # Listings: 4, 0 Foreclosures, 1 Third Party Listing
Current Listings Prices: $127,900 to $149,000 or $78/sf to $90/sf.

So, in Greenwood Estates in 2010, it safe to state that Foreclosures Are A Part Of The Baton Rouge Housing Market!

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2009 to December 31, 2010. This information was extracted on 1/5/2011. Yes, this appraiser does have the permission of the GBRAR MLS to use the chart above.

Tags: Baton Rouge Appraisers, Baton Rouge FHA Appraisers, Baton Rouge Home Appraisers, Baton Rouge Homes, Baton Rouge Housing, Baton Rouge Housing Market, Baton Rouge Real Estate, Baton Rouge Real Estate Trends,

I recently completed 2 home appraisal assignments in Monticello Subdivision this week, both on Monticello Boulevard, and noticed these observations. There appears to be some decline due to REO or foreclosure activity. The Average Sold Price Per Sq. Ft. is down $6/sf and Median Sales Price is down $5,000 from 2009 versus 2010. AND, 5 of the 12 Current Listings are Foreclosures with more at least 2 more foreclosures that could be on the market later in 2011.

Solds In The Monticello Subdivisions from 1/1/2010 to 12/16/2010 revealed:

Average Sales Price: $138,580 ($154,573 in 2009)
Average Sold Price Per Sq. Ft.: $85/sf ($91/sf in 2009)
Median Sold Price: $145,000 ($150,500 in 2009)
Number of Sales: 15 (20 in 2009)
Average Number of Days On Market: 64 (96 in 2009)
Low To High: $82,000 to $169,000
Number of Sold REO/Foreclosures Noted In MLS: 3 or 20% of All Sales
Current # Listings: 12, 5 Are Foreclosures or 42% of All Listings
Current Listings Prices: $89,900 To $175,000

The 15 sales in in this very large subdivision in 2010 versus the 20 in 2009 reflects the current slowdown of this market post Federal Tax Credit Expiration. Without the tax credit, there doesn’t appear to be as much incentive to purchase a home. This slowdown in homes sales in a trend throughout the Baton Rouge housing market in latter 2010.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2009 to December 16, 2010. This information was extracted on 12/16/2010.

Tags: Appraisers Baton Rouge, Appraisers in Baton Rouge, Baton Rouge Estate Appraisers, Baton Rouge Estate Settlement Appraisers, Baton Rouge Home Appraisers, Baton Rouge Housing, Baton Rouge Housing Market, Baton Rouge Probate Appraisers, Baton Rouge Real Estate, Baton Rouge Real Estate Buzz, Baton Rouge Real Estate Minute, Baton Rouge Real Estate Trends

Entrance Image Source: http://lakepointezachary.com/

Solds In Lake Pointe from 1/2010 to 12/03/2010 revealed:
Average Sales Price: $271,400 ($257,700 in 2009 =’s +$5.3%)
Average Sold Price Sq. Ft.: $121/sf ($117.44/sf in 2009 =’s +3%)
Median Sold Price: $252,000 ($265,000 in 2009 =’s -4.9% Decline)
Number of Sales: 5 (5 in 2009)
Average Number of Days On Market: 158 (129 in 2009)
Low To High: $236,000 to $360,000 ($204,000 to $330,000 in 2009)
Number of Sold REO/Foreclosures Noted In MLS: 0
Current # Listings: 1, 0 Are Foreclosures
Current Listings Prices: $279,900

WHY WE RELY ON MEDIAN SALES PRICE VERSUS AVERAGE SALES PRICE?

Median Sales Price is the barometer by which the National Association of Realtors utilizes to report on national housing markets. Average Sales Price tends to take all of the home sales prices from the lowest, say $50,000, to the highest, say $1,000,000, and state the average of them all, sometimes skewing the numbers because of the extreme highs and lows. Median Sales Price tends to focus more on the middle of where the bulk of home sales prices are taking place. Generally, the Average Sales Price is going to be higher because it includes the extreme high sales prices in a given market. Fannie Mae understands the problem with using Average Sales Price and now demands home appraisers perform the 1004MC or Market Conditions form based on narrower “sub-market” parameters for comp search. This means that on a 2,000sf home, appraisers would be searching for comps with say 200sf below and above 2,000sf, say 1,800sf up to 2,200sf with similar ages and other similar characteristics.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2009 to December 3, 2010. This information was extracted on 12/03/2010.

Tags: Baton Rouge Housing, Baton Rouge Housing Market, Baton Rouge Real Estate, Baton Rouge Real Estate Housing, East Baton Rouge, Greater Baton Rouge, Zachary La, Zachary Louisiana, Lake Pointe, 70791

– Ascension Parish Home Appraisers: Quail Creek Subdivision Numbers Improve in 2010! While the number of home sales is down 54%, the average sales price, median sales price and average sold price per sq. ft. are all up in 2010 based on 6 sales.

I’m currently working on a refinance appraisal on Lakeland Avenue in Quail Creek Subdivision and found the numbers below rather interesting.

Solds In Quail Creek from 1/2010 to 12/1/2010 revealed:
Average Sales Price: $284,383 ($241,281 in 2009)
Average Sold Price Per Sq. Ft.: $117.14/sf ($113.42/sf in 2009)
Median Sold Price: $285,200 ($250,000 in 2009 based on 13 sales)
Number of Sales: 6 (13 in 2009)
Average Number of Days On Market:131
Low To High: $217,900 to $350,000 (Sizes Vary from 1,790sf to 3,292sf)
Number of Sold REO/Foreclosures Noted In MLS: 0
Current # Listings: 4, 0 Are Foreclosures
Current Listings Prices: $225,000 To $309,900

NOTE: The GBRMLS Chart has not been updated and only includes “4″ of the “6″ sales taken place.

NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2009 to December 1, 2010. This information was extracted on 12/01/2010.

Tags: Baton Rouge Estate Appraisers, Baton Rouge FHA Appraisers, Baton Rouge Housing, Baton Rouge Housing Market, Baton Rouge Real Estate Appraisers, Baton Rouge Real Estate Buzz, Greater Baton Rouge Real Estate, Quail Creek, Ascension Parish Real Estate, 70769

Altos Research this morning has an interesting chart: What if the Housing Stimulus Never Existed?

Yes, this argument is counterfactual, economically speaking, but… as Kyle Bass has asked – “How many problems have you solved by kicking the can down the road?”

Yahoo Finance has an interesting video on Robert Shiller feels that the end of the tax credit could mean big trouble for housing.

Accurate Valuation Group has released a 1 year and 3 year study on Greater Baton Rouge Housing – Facts, Prices, Trends! The 1 year study includes 10 charts and 3 year includes 9 charts.

Click here to view the 1 Year Study!

Click here to view the 3 Year Study!

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.

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.

Appraisal 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 Search Parameters

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, 2500sf to 3100sf.

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.

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%.

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.

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!

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

Chart Showing Slowing Home Sales!

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 still 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.

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.”

Data was used with permission of the GBRMLS, search dates 1/1/2007 to 10/07/2010, extracted on 10/7/2010.

Solds In Westdale from 1/2010 to 9/28/2010 revealed:
Average Sales Price: $204,983
Average Sold Price Per Sq. Ft.: $128/sf
Median Sold Price: $194,450
Number of Sales: 6 (18 Total in 2009)
Average Number of Days On Market: 80
Low To High: $138,500 to $282,500
Number of Sold REO/Foreclosures Noted In MLS: 1
Current # Listings: 10, 2 Are Foreclosures
Current Listings Prices: $149,900 To $510,000

NOTE: When I refer to Westdale below, this includes Westdale, Westdale Heights, Westdale Woods and Westdale Terrace. From 1/1/2005 to 9/28/2010, there were 89 total sales from $121,600 to $685,000. The peak of the median sales price took place in September 2007 at $235,000. NOTE: The median sales price has increased by +4.89% since 9/2009.

This data was used with the permission of GBRAR, extracted on 9/28/2010 from 1/1/2005 through 9/28/2010.

Tags: Baton Rouge Estate Minute, Baton Rouge Home Appraisers, Baton Rouge Homes, Baton Rouge Housing, Baton Rouge Housing Market, Baton Rouge Real Estate, Baton Rouge Real Estate Agents, Baton Rouge Real Estate Appraisers, Baton Rouge Realtor, Baton Rouge Realtors

Solds In Plantation Trace 70808 from 1/2010 to 9/28/2010 revealed:
Average Sales Price: $275,500
Average Sold Price Per Sq. Ft.: $116.33/sf
Median Sold Price: $275,000
Number of Sales: 6
Average Number of Days On Market: 36
Low To High: $218,000 to $345,000
Number of Sold REO/Foreclosures Noted In MLS: 0
Current # Listings: 6, 0 Are Listed As Foreclosures
Current Listings Prices: $210,000 To $399,000

Below is the charting of median sold price since 1/1/2005.

NOTE: Data for the Baton Rouge Real Estate Trends Report was used with the permission of the GBRAR. Data search was from 1/1/2005 to 9/28/2010, extracted on 9/28/2010.

Tags: Baton Rouge Home Appraisers, Baton Rouge Homes, Baton Rouge Homes For Sale, Baton Rouge Real Estate, baton rouge real estate agent listings, Baton Rouge Real Estate Agents, Baton Rouge Real Estate Appraisers, Baton Rouge Real Estate Buzz, Baton Rouge Real Estate Housing, Baton Rouge Real Estate Minute, Baton Rouge Real Estate Trends, Baton Rouge Realtor, Baton Rouge Realtors

]]> http://www.batonrougerealestateappraisal.com/2010/09/baton-rouge-real-estate-appraisal-plantation-trace-2010-housing-report/feed/ 0 http://www.batonrougerealestateappraisal.com/2010/09/baton-rouge-real-estate-minute-tara-subdivision-2010-housing-market-update/ http://www.batonrougerealestateappraisal.com/2010/09/baton-rouge-real-estate-minute-tara-subdivision-2010-housing-market-update/#comments Tue, 21 Sep 2010 05:13:53 +0000 Baton Rouge Real Estate Appraisal http://www.batonrougerealestateappraisal.com/baton-rouge-real-estate-appraisal/baton-rouge-real-estate-minute-tara-subdivision-2010-housing-market-update/ http://www.batonrougerealestateminute.com/ – Baton Rouge Real Estate Minute: Tara Subdivision 70806 2010 Housing Market Update

The August 2010 housing numbers are in from the Greater Baton Rouge Association of Realtors from 8/1/2010 to 8/31/2010 and from 8/1/2009 to 8/31/2010, extracted on 9/16/2010.

Livingston Parish August 2010 Market Data
(For MLS Areas 80, 81, 82 & 83)

Total Monthly Sales: 56 (Lowest Number Of Sales In Period)

Average Listing Price: $164,295 ($162,914 in 8/2009)
Average Sold Price: $161,018 ($160,232 in 8/2009)
Median Sold Price: $140,900 ($152,500 in 8/2009)
Average Days On The Market: 92 (85 in 8/2009)
Listing To Sales Price Ratio: 98% (98.3% in 8/2009)
Current Inventory: 811 (703 in 8/2009)
Months of Inventory: 14.5 (Longest In Period, 5.9 in 8/2009)

Annual View From 8/2009 to 8/2010:

Total Monthly Sales: 1210

Average Listing Price: $167,849
Average Sold Price: $164,948
Median Sold Price: $152,147
Average Days On The Market: 90
Listing To Sales Price Ratio: 98.3%
Average Current Inventory: 719
Average Months of Inventory: 7.1

Accurate Valuations Group’s “MARKET WRAP”:

NUMBER OF HOME SALES DECLINES. Based on these numbers, home sales are slowing considerably from 120 in August 2009, 109 in June 2010, 83 in July 2010 to just 56 in August 2010, a decline of -53% since August 2009.

LOCAL HOUSING INVENTORY SWELLS. With the number of home sales declining, this resulted in an increase to over 14 months of inventory. The good news is that in August, it still took an average days on the market of 92 days to sell a home.

MEDIAN SALES PRICE DECLINE. The median sales price declined sharply from $152,500 in August 2009, $149,000 in June 2010, $155,000 in July 2010 to just $140,900 in August 2010, a decline of -7.6% since August 2009. This shows that this market continues to favor the more affordable housing options over that of the higher end homes market. Area home builders have reacted and are building smaller homes to accomodate this market demand.

WHY WE USE MEDIAN SALES PRICE OVER AVERAGE SALES PRICE? NOTE: Why Median Sales Price is a better indicator than Average Sales Price! Median Sales Price is the barometer by which the National Association of Realtors uses to report on national housing markets. Average Sales Price tends to take all of the home sales prices from the lowest, say $50,000, to the highest, say $1,000,000, and state the average of them all, sometimes skewing the numbers because of the extreme highs and lows. Median Sales Price tends to focus more on the middle of where the bulk of home sales prices are taking place. Generally, the Average Sales Price is going to be higher because it includes the extreme high sales prices in a given market.

http://www.batonrougerealestateminute.com/

A 2009 versus 2010 comparison of Bellingrath Lakes shows a slight decline in Average Sold Price per sq. ft., from $123.75/sf down to $123.13/sf. The Median Sales Price has declined from $304,400 to $290,000. The Average Sales Price has declined from $318,550 to $290,500. And, the Average Days On Market have declined from 188 in 2009 to $105 in 2010. There were 6 total MLS sales in 2009 versus 4 so far into 2010.