http://www.westbatonrougeappraiser.com/ – West Baton Rouge New Homes Oversupply and Declining Median Sales Prices
Despite the consecutive rounds of positive economic news for the Greater Baton Rouge Economy, the West Baton Rouge Housing Market, more particularly the Addis Market, is still oversupplied and has been for quite some time now. As the chart clearly shows, the median sales price continues to decline as well. During the late 2005 to 2008 new home construction boom, many new, expensive homes were constructed within the Brusly and Addis areas.
The above charting and report of oversupply was obtained while working on a pre-foreclosure assignment within the Addis Market, on a 3 year old 1,930sf home. The search parameters were 6/1/06 to present, 1750sf to 2200sf, New to 6-10 Year Old homes. The Median Sales Price Percentage Decline Since 12/2008 has been -3.36%. Within my appraisal report, I noted an 18 month supply of competing housing on the market, 10 competing listings and a 99% Listing-To-Sales Price Ratio. However, the Listing-To-Sales Price Ratio appeared to be only that high because seller paid concessions on 2 of the sales used were $10,000 and $5,000. And, of the 2 listing comps I used, one of them has been listed since 1/2007 without selling. Of the 3 solds used as comps, they sold in 140, 7 and 682 days. A slower economy and High pricing is believed to be the reason for this current situation.