Greater Baton Rouge Great Flood Repaired or Renovated Sales Study Update, Low Inventory To The Rescue! As of January 24, 2017
Greater Baton Rouge Low Inventory Housing Market
For the last several quarters, buyers have had fewer choices in homes available due to an undersupplied market. The recent rise to 3.7 months supply in Q4-2016 was only due to flood damaged properties being added to local GBRAR MLS. Without flooded homes being added, we’d probably be closer to the lower 3.1 to 3.2 months range of inventory. And, going into the 2017 Spring home buying season, there will be more inventory of flooded-repaired or flooded-renovated homes to choose from.
There’s been forty (40) sales so far!
Flooded Repaired or Renovated Displaying No Discount of Stigma: 72.5%
29 sales or 72.5% indicate no stigma or discount and actually sold on average for $10/sf more than the pre-flood median sales price in each subdivision. However, generally these were homes that had not flooded before, were not located in a flood zone, did not require high cost flood insurance and were professionally repaired and/or renovated. I’m not talking about homes which flooded in 1997, 1980, 1992, repeatedly have a history of flooding.
Flooded Repaired or Renovated Displaying No Discount of Stigma: 27.5%
11 sales or 27.5% indicate stigma or discount from $2/sf to $17/sf and on average sold at $8.40/sf discount
However, in some of the same subdivisions, you have sales with and without a discount. So, it’s difficult to say this or that subdivision home prices has taken a nose dive post-flood. For example, in Baton Rouge’s Sherwood Forest Subdivision, there’s some sales showing no discount or stigma and some selling at discounts.
Bill Cobb Appraiser is currently monitoring approximately seventy (70) active and under contract listings of flooded-repaired or renovated homes.
Note: Seller paid concessions were removed in these sales prices (if home sold for $200,000 yet seller paid $8,000 to help buyer with financing, then I reported $192,000 because that’s what seller left closing table with…)
As of 01/24/2017, based on GBR Association of REALTORS/MLS data from 9/1/2016 to 1/24/2017, extracted 01/24/2017
Stay Tuned For Future Updates. Do you have questions? E mail Bill at ask the appraiser at g mail