Home Market Value by glq14167

VIEWS: 20 PAGES: 17

More Info
									     Key Market Indicators
for Baton Rouge Capital Region
       • Homes continue to appreciate in
         value
       • Home sales have stabilized,
         inventory is up, and forecasts for
         the market are positive
       • Status of national market makes
         now a smart time to invest locally
       • Industrial growth projected
       • Investment in housing industry is
         catalyst to overall economy
                       Research Shows:
    1. Homes in Capital Region
   Continue to Appreciate in Value




1. The average selling price of homes in the Capital Region has
   increased by more than 30 percent between 2004 and 2007, with the
   region’s average selling price of a home increasing from $143,976 to
   $196,329 during that time, according to GBRAR MLS stats.
                    Research Shows:
      1. Homes in Capital Region
     Continue to Appreciate in Value
2.   The Local Market Monitor, LLC, has rated the Baton
     Rouge home market as a “Fair Value” market, with
     homes steadily appreciating over the past five years.
     That report shows average home prices are up nearly 37
     percent from 2003 to 2007.

3.   The Office of Federal Housing Enterprise Oversight
     reports that new homes in Louisiana appreciated by 5.4
     percent between 2006 and 2007, which is well above the
     national average of 1.79 percent appreciation for the
     same time period.
                      Research Shows:
      1. Homes in Capital Region
     Continue to Appreciate in Value
5.   The average cost of a new home in the Capital Region in 2007 is
     $236,680, and the average cost of a resale home in the Capital
     Region in 2007 is $188,751, according to GBRAR MLS Listings
     Information.
                      Research Shows:
      1. Homes in Capital Region
     Continue to Appreciate in Value
6.   60% of the average homeowner’s wealth comes from their
     home’s equity, according to the U.S. Department of Housing and
     Urban Development. During the past three decades, home
     values have increased an average of more than 6 percent per
     year, according to NAR existing home sales historic series.




                                                         Home
                                                         Investment
                                                         Remaining
                                                         Wealth
                                    60% of homeowners’
                                    wealth comes from
                                    home equity
                  Research Shows:
   1. Homes in Capital Region
  Continue to Appreciate in Value
7. On average, the value of a home nearly doubles every
   10 years, according to the National Association of
   Realtors existing home sales historic series.

8. The OFHEO report shows that foreclosure filings
   occurred on less than 1 percent of the households in
   Louisiana, ranking it among the nation’s top states
   between 2006 and 2007.
                    Research Shows:
        2. Home Sales Stabilizing,
      Inventory Up, Outlook Positive
1.   A total value of $1 billion of homes were sold in 2006,
     compared to $986 million in 2007, according to GBRAR
     MLS statistics.

2.   The Capital Region had 1,400 new homes sold in 2006,
     compared to 1,039 in 2007. At the same time, 4,000
     resales occur in 2006 in the Capital Region, compared to
     3,772 resales in 2007. These numbers were gathered
     from the GBRAR MLS Listings.
                   Research Shows:
       2. Home Sales Stabilizing,
     Inventory Up, Outlook Positive

3.   The Baton Rouge Area Chamber’s analysis of the
     GBRAR MLS Listings show the Capital Region’s
     “months inventory” to have increased to 8 months for
     December 2007, signaling a “slow down” in the local
     housing demand. The greater inventory also reflects a
     larger population and anticipated growth and
     development in the near future.
                       Research Shows:
       2. Home Sales Stabilizing,
     Inventory Up, Outlook Positive
4.   Louisiana is one of only
     two states projected to
     experience growth in the
     housing industry between
     2007 and 2008, and it is
     projected to rank among
     the top states for housing
     growth from 2008-2009,
     according to the NAHB
     Regional Outlook Report,
     presented by Director of
     Forecasting Bernard M.
     Markstein on Oct.
     24,2007.
                   Research Shows:
       2. Home Sales Stabilizing,
     Inventory Up, Outlook Positive

5.   Population projections show growth for the nine-parish
     Capital Region increasing from 790,000 in 2007 to
     809,282 by 2010, according to U.S. Census Data
     reported by BRAC.

6.   Local economic development officials report several
     industrial and commercial investments are earmarked
     for the region in the coming months.
              Research Shows:
3. National Conditions Make Now a
        Smart Time to Invest
• Basic supply and demand theory – with
  less demand for materials and labor, more
  are available at a lesser cost and no delay.
• More affordable housing costs help
  homeowners grow equity even faster.
                    Research Shows:
    4. Anticipated Industrial
Expansions for the Capital Region
The Capital Region anticipates receiving billions of dollars of
industrial projects, creating new jobs and pumping new dollars into
the economy. This growth will increase the demand for housing.
                  Research Shows:
     4. Anticipated Industrial
 Expansions for the Capital Region
• Top state economists forecast 15,000 new jobs in the
  Baton Rouge Capital Region in the next few years.
                     Research Shows:
5. Housing Industry Has Significant
Impact on Economic Development
1.   The construction of 1,000 new homes will generate 2,200 jobs,
     $85 million in income and more than $11 million in state and
     local revenue in the first year, according to the National
     Association of Home Builders.

2.   Every dollar spent in the home construction industry is estimated
     to have a multiplier effect of 7, according to economists.

3.   According to economic calculations, the Capital Region received
     a $6 billion benefit from the housing industry in 2007. This 9-
     parish area reported 3,616 permits for new homes in 2007, with
     an average new home cost of $239,500.
     Thus, 3,616 x $239,500 x 7 = $6.06 billion.
                    Research Shows:
5. Housing Industry Has Significant
Impact on Economic Development
 4.   Building and construction
      account for more than 17
      percent of the local
      economy, according to
      BRAC.
         Resources Support
       Information Campaign
•   GBRAR MLS Listing Information
•   NAHB, including Regional Outlook Reports
•   CRBA membership surveys
•   Office of Federal Housing Enterprise
    Oversight
•   National Realtors Association
•   The Local Market Monitor, LLC
•   Baton Rouge Area Chamber
•   Parish Assessor Offices

								
To top