Key Market Indicators for Baton Rouge Capital Region. Homes continue to appreciate in value Home sales have stabilized, inventory is up, and forecasts for the market are positive Status of national market makes now a smart time to invest locally Industrial growth projected
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2. The Local Market Monitor, LLC, has rated the Baton Rouge home market as a “Fair Value” market, with homes steadily appreciating over the past five years. That report shows average home prices are up nearly 37 percent from 2003 to 2007.
5. The average cost of a new home in the Capital Region in 2007 is $236,680, and the average cost of a resale home in the Capital Region in 2007 is $188,751, according to GBRAR MLS Listings Information.
6. 60% of the average homeowner’s wealth comes from their home’s equity, according to the U.S. Department of Housing and Urban Development. During the past three decades, home values have increased an average of more than 6 percent per year, according to NAR existing home sales historic series.
60% of homeowners’ wealth comes from home equity
7. On average, the value of a home nearly doubles every 10 years, according to the National Association of Realtors existing home sales historic series.
8. The OFHEO report shows that foreclosure filings occurred on less than 1 percent of the households in Louisiana, ranking it among the nation’s top states between 2006 and 2007.
3. The Baton Rouge Area Chamber’s analysis of the GBRAR MLS Listings show the Capital Region’s “months inventory” to have increased to 8 months for December 2007, signaling a “slow down” in the local housing demand. The greater inventory also reflects a larger population and anticipated growth and development in the near future.
4. Louisiana is one of only two states projected to experience growth in the housing industry between 2007 and 2008, and it is projected to rank among the top states for housing growth from 2008-2009, according to the NAHB Regional Outlook Report, presented by Director of Forecasting Bernard M. Markstein on Oct. 24,2007.
The Capital Region anticipates receiving billions of dollars of industrial projects, creating new jobs and pumping new dollars into the economy. This growth will increase the demand for housing.
1. The construction of 1,000 new homes will generate 2,200 jobs, $85 million in income and more than $11 million in state and local revenue in the first year, according to the National Association of Home Builders.
Thus, 3,616 x $239,500 x 7 = $6.06 billion.
4. Building and construction account for more than 17 percent of the local economy, according to BRAC.