http://batonrougefhaappraisers.com/– Prairieville Louisiana Real Estate: Market Direction: Up or Down?
Solds In Manchac Place from 01/01/2007 to 12/31/2007 revealed:
Average Sales Price: $291,795
Average Sold Price Per Sq. Ft. $110.62/sf
Median Sold Price: $300,000
Low Sales Price: $217,900
High Sales Price: $330,000
Average # of Days On Market: 86
# of Sales: 13
Solds In Manchac Place From 01/01/2008 to 12/05/2008 reveals:
The Average Sales Price: $273,083
The Average Sold Price Per Sq. Ft.: $100.48/sf
The Median Sold Price: $271,950
Low Sales Price: $235,000
High Sales Price: $315,000
Average # of Days On Market: 72
# of Sales: 20
Listing Price To Sales Price Ratio Has Been: 98.58%
Therefore, based on the median sale price barometer (the barometer used by the NAR National Association of Realtors) within Manchac Place, the market direction appears to be decreasing.
The average sales price has decreased from $291,795 down to $273,083 or -$18,712 or -6.41%.
The median sales price has also decreased from $300,000 down to $271,950 or -$28,050 or -9.35%.
The average sold price per sq. ft. has declined from $110.62/sf down to $100.48/sf or -$10.14/sf or -9.17%.
From my study of Legal News, part of this decline “appears” to do with a higher than average distressed sale rate. MLS reports that of the 20 2008 Manchac Place sales that took place YTD, 11 of them were REOs. In part this appears to have something to do with the 2006 Flipping Scheme Gone Wild in Manchac Place where 16 homes were purchased for market prices, sold the same day of purchase for much higher prices in the $300,000 to $465,000 range and then these homes subsequently went into foreclosure. These weren’t the emergency Hurricane Katrina purchases. This appraiser has appraised at least 1 of these REOs and knows 2 other appraisers that have also been appraising these REOs.
For Instance: Lot 210, Manchac Place was purchased on 12/12/2006 for $306,000 COB 655883, sold on 12/12/2006 for $450,000 COB 655884, sold at Sheriff’s Sale for $201,667 COB and then after foreclosure, Sold for $267,750 on 5/7/2008.
Another Example: Lot 77, Manchac Place was purchased on 2/6/2006 for $390,000 COB 628508, sold on 2/10/2006 for $450,000 COB 628509, Purchased Back At Sheriff’s Sale 6/17/07 for $347,000 COB 670730 and then after foreclosure, Sold for $324,900 on 10/10/2007 COB 681344.
There appears to have been 16 transactions similar to these above where 3 individuals (per Legal News Public Records) bought at market prices, sold at prices far, far above market support for Manchac Place and then 12 of these 16 homes appear to have since gone into foreclosure or sold at much lower prices. The lot numbers involved were 120, 210, 219, 177, 71, 118, 44, 175, 220, 76, 11, 153, 26, 126, 132 and 77. The lot numbers which have not sold lower or appear to have not gone into foreclosure are: 71, 118, 120 and 177. This flipping scheme gone wild appears to have hurt the home values within Manchac Place. It was recommended by one local real estate industry professional to get the FBI involved in this investigation.
Manchac Place data used with the permission of the Greater Baton Rouge Association of Realtors.
Bill Cobb, CREA, is Greater Baton Rouge’s favorite and most reputable home appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A home appraiser with 16 years experience, Bill Cobb brings a wealth of knowledge to the table as a home appraiser.
Bill’s company, Accurate Valuations Home Appraisal Group, serves Greater Baton Rouge (East Baton Rouge Parish, West Baton Rouge Parish, Western Livingston Parish and Northern Ascension Parish).
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