What’s Really Going On In O’Neal Place After Great Flood of August 2016 and Why?
So far in 2017, sold prices are 30% higher than pre-flood! Will this post-flood recovery create a paradigm shift of improvement for the subdivision? It could take a couple of years to complete and a new direction may be possible within!
Yes, O’Neal Place, being located very near the Amite River flooded severely during the “Great Flood” of August 2016 with flood water levels between 4.4 to 4.8 feet high and leaving dozens of empty homes where either tenants or owners just walked away. For months, it was shell shocked. YET in 2017, that sheer fact isn’t stopping buyers from paying TOP DOLLAR for O’Neal Place remodels. Why? I answer this below.
I’ve been involved in performing Baton Rouge Pre-Listing Appraisals For O’Neal Place post-flood.
A little perspective first. O’Neal Place has languished over the years losing value as it seemed to turn into a rental market with some properties appearing not so well kept up. Distressed sales and distressed activity wasn’t uncommon. Pre-flood and in 2016, the median sales price of homes was only $119,000 and $76 per square foot.
FAST FORWARD into 2017 and all of a sudden buyers appear to be pushing prices to the $140’s to to near $180’s with median sold price per sq. ft near $100. Even the appearance of some properties still in poor condition isn’t stopping buyers who I guess have confidence investors are stepping in to transform the subdivision. Thirty-four (34) flooded homes in O’Neal Place have sold in GBRAR MLS from $45,000 to $70,000 since the flood.
Map showing close proximity to Amite River
This is the flood water level I personally measured on Bonham Ave at 4.8 feet
“Some” Flood Damaged Homes Are Being Turned From These….
To These Rebuilds From The Studs Below…
This home sold in 6 days, listed for $164,900 with 1,473sf.
This home below literally sold within 3 days of being listed, FULL PRICE!
This home below literally sold with 1.5 hours of being listed, FULL PRICE!
So, why are buyers so eager to buy in O’Neal Place despite the challenges?
Sheer lack of inventory of homes to purchase AND because of the extreme lack of rentals to rent. So, when home become available, buyers snap them up! It’s as if 2017 buyers have no context or understanding whatsoever as to what home prices were even in early 2016…and not just in O’Neal Place. This is the story of the 2017 Baton Rouge housing market reaching new highs by the month. When I say, “So far in 2017, sold prices are 30% higher than pre-flood!”, I’m comparing $76/sf vs $99/sf median sales prices.
Here’s a list of the repaired or rebuilt homes listed in GBRAR MLS
ARE THESE DEALS APPRAISING?
Two have so far selling with a median sales price of $99/sf with 7 others under contract. And, this is simiar to what’s happening in other flood damaged subdivisions such as:
Old Jefferson 70817
Pecan Creek 70817
Antioch Villa 70817
Shadow Springs 70726
Brown Heights in Baker
Carmel Acres in Central
GREATER BATON ROUGE REAL ESTATE DATA NOTE:
Based on information from Greater Baton Rouge Association of REALTORS®\MLS for period 01/01/2016 to 03/01/2017, extracted on 03/01/2017.