Baton Rouge Real Estate 70805: Beware Of Many Overpriced Listings

SEVERELY OVERPRICED CURRENT LISTINGS IN BATON ROUGE REAL ESTATE 70805 MEAN YOU NEED A BATON ROUGE PRE-PURCHASE HOME APPRAISAL TO MAKE SURE YOU DON’T OVERPAY IN 70805!  

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Baton Rouge Housing Market 70805 – North Baton Rouge
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Baton Rouge Pre-Purchase Home Appraisals

Baton Rouge Real Estate Investors work this market, buying low and trying to sell extra high.  However, with a market so weak, it’s been difficult to sell at high prices and some of these flips have turned into rentals.  Baton Rouge Real Estate Investor are instead hoping for improved prices in order to sell in future years. 

North Baton Rouge 70805 Housing Market Decline Details Market Conditions Have Plummeted Since 2010 in GBRMLS Area 31. A GBRMLS study of MLS Area 31 (70805) since 1/1/2011 shows 379 Total Sales with 307 Being Distressed Sales or 81% of ALL Sales Being Distressed Sales. Of these 379 Sales, the Median Sales Price has plunged down to only $27,000 and Average Sales Price Per Sq. Ft. $27/sf at Baton Rouge Real Estate Closings via a Baton Rouge Real Estate Attorney.

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Severe Home Price Correction From 2010 To 2013
In 2010 in MLS Area 31 based on 142 sales, average sales price was $42,556, median sales price $33,000 and average sold price per sq. ft. $33/sf. In 2012 in MLS Area 31 based on 147 sales, average sales price was $33,510, median sales price $24,225 and average sold price per sq. ft. $26/sf. In 2013 in MLS Area 31 based on 103 sales, average sales price was $34,971, median sales price $28,000 and average sold price per sq. ft. $27/sf. So, from 2010 to 2013, the average sales price declined by $7,585 or -17.8%, median sales price declined by $5,000 or -15% and average sold price per sq. ft declined by $6/sf or -18.2%.

DAYS ON MARKET IS MUCH LONGER NOW
It’s taking much longer to sell a home, especially a high priced renovated home as Sold Comps 1-5 were on the market for 162 days, 303 days, 218 days, 181 days and 329 days.

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Chart from 02/2010 Shows 61% of ALL Sales Were Distressed Sales (REO, 3rd Party and Short Sales).

WEAK LISTING TO SALES PRICE RATIO
The Listing Price To Sales Price Ratio is approximately 91% of listing price, or 9% below asking prices, which shows a weaker market. With So Many REO Sales and Listings, It Was Difficult To Complete Report Without Using Them (None were used). Original 2010 Report was based on “100% completion of construction and interior being totally “renovated”, which WAS NOT fully completed.

SEVERELY OVERPRICED CURRENT LISTINGS IN 70805 MEAN YOU NEED A PRE-LISTING APPRAISAL TO MAKE SURE YOU DON’T OVERPAY IN 70805!

NOTE: We just went over the numbers of this severe market correction and oveall market weakness. This IS NOT a market of strength, but rather extreme weakness. However, a Search of listed homes in 70805 shows some very, very high listing prices and some of these are for homes that are not even renovated. For example, here are some overprice listings in 70805 for which there is absolutely ZERO market support (ie., no comparable sales to support these listing prices) AND REMEMBER THAT SUPPORT NOW IS AT ONLY $27/SF:

1.) Fairwood Subd between 1,250sf to 1,300sf living area 6/3/2 not renovated listed for a whopping $89,000 or $81/SF! $70 DOLLARS PER SQ. FT. IN 70805?

2.) Denham Heights Subd between 1,075sf to 1,125sf 6/3/1.5 renovated listed for a whopping $89,000 and has been listed since 11/2012 without selling! $81 DOLLARS PER SQ. FT. IN 70805?

3.) Victoria Gardens Subd between 1,050sf to 1,100sf 6/3/1.5 renovated listed for a whopping $98,000 and has been listed since 04/2012 without selling! $92 DOLLARS PER SQ. FT. IN 70805?

4.) Bourgeois Subd between 1,200sf to 1,250sf 6/3/1 not renovated listed for a whopping $82,900 and has been listed since 01/2013 without selling! $68 DOLLARS PER SQ. FT. IN 70805?

5.) Prescott Court Subd between 1,075sf to 1,125sf living area 6/3/1 not renovated listed for a whopping $79,900 or $80/SF! $80 DOLLARS PER SQ. FT. IN 70805?

These are ALL GROSSLY INFLATED ASKING PRICES WITH NO COMPARABLE SALES SUPPORT. And, it would be foolish to pay these high prices for these homes in such a weak market.

How Do I Know This?
Because the 1,680SF 4368 Mohican St just sold in July 2013 for $86,500, totally renovated on large lot, with extra large 529sf 2 auto carport, workshop. This was a total remodel with much higher quality materials than average, very impressive home and A LOT OF HOME for the money! Photo from http://www.neighborcity.com

Mohican St

GBRMLS NOTE: Based on information from Greater Baton Rouge Association of REALTORS® \MLS for period 01/01/2010 to 09/26/2013, extracted on 09/26/2013.

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About Bill Cobb, Appraiser

The Baton Rouge Residential Appraisal Blog is an information source provided by local Home Appraiser, Bill Cobb, and Accurate Valuations Group. Bill has 24 years experience as a Baton Rouge Residential Home Appraiser and updates his local network of sites weekly with reports, videos and audio reviews of local housing market conditions! 225-293-1500