In September 2013 for a few weeks, there was sheer pandemonium within Greater Baton Rouge Real Estate when the U.S. Federal Government and FEMA made a move making it much more difficult to buy flood insurance, up to 5 times +/- the cost from just days before. During this time period, I decided to pen an article on just how this move could impact local home prices: Parks of Dutchtown Home Prices To Tumble With New Flood Insurance Rates? It was a question by me, not a statement by me.
On December 22, 2015, I was contacted about my article asking the following, “I am interested in buying a home in the Parks at Dutchtown and I noticed that you had an article written regarding the price of homes tumbling due to new flood insurance rates. I was wondering if I could get your opinion on this. Of course I don’t want to buy a home in this neighborhood without having all of the information that I need to make a smart purchase.”
My Answer Was:
“The Federal Gov decided to step in and ease Flood Insurance regulation basically saving Greater Baton Rougeons from paying very high flood insurance rates. Just understand that the Fed Gov basically put a temporary band-aid on this Flood Insurance situation, which could flare up in coming years leaving those who own homes in zone AE to pay higher premiums overnight. This may or may not happen but as we saw for those few weeks back in 2013, it scared the hell out of homeowners and scared many from buying homes in a flood zone…..and understandably so. See attached pdf showing home sales trends inside subdivision. 2007 was obviously the peak in prices, then a correction and in 2015, it appears home prices are about where they were in 2013. Of the 7 sales in 2015, the average sold price was $103/sf to $105/sf with the highest sales price of $116/sf. Hope this helps! Bill Cobb, Appraiser”
The Parks of Dutchtown Geismar Home Sales Update: 2013 vs 2015
From 01/2012 to 09/09/2013, Average Sold Price was $105/sf and Median Sales Price Was $276,950:
The Average Sold Price Per Sq. Ft. is up 3% from $102/sf to $105/sf. The Number of Closed Sales Down 10%, from 10 to 9 sales. The Median Sold Price is Up 3%, from $268,500 to $276,950. The Average Sold Price is Down 2.5%, $273,465 to $266,761. This is comparison of 01/01/2012 to 08/31/2012 Year To Date versus 01/01/2013 to 08/31/2013 YTD.
From 01/01/2015 to 12/22/2015, Average Sold Price was $103/sf and Median Sales Price Was $270,000:
7 Sales From $209,900 to $346,000
Median Sales Price $270,000
Average Sold Price $275,342
Average Sold Price Per Square Foot $103/sf
LOW Sold Price Per Square Foot $91/sf
HIGH Sold Price Per Square Foot $116/sf
Average Listing To Sales Price Ratio: 99%
Average Days On Market: 86 Days
Average Home Size: 2,676sf
***** So, upon further investigation, 2015 home prices are even lower than in 09/2013. *****
The year 2007 was obviously the peak in prices, then a correction and in 2015, it appears home prices are on the uptrend.
GBRMLS NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®MLS for the period of 01/01/2012 to 08/31/2013. This information was extracted on 09/09/2013. And for the period of 01/01/2015 to 12/22/2015. This information was extracted on 12/22/2015.
Bill Cobb, Greater Baton Rouge’s Home Appraiser, blogs about Northern Ascension Parish Home Price Trends. 225-293-1500.