Real estate recap: December 18, 2012

A November to remember: Strong November home sales in the eight-parish region tracked by the Greater Baton Rouge Association of Realtors have already placed year-to-date 2012 home sales ahead of total sales in 2011, with another month of sales still to report this year. GBRAR reports 566 homes were sold in November in East Baton Rouge, Ascension, Livingston, West Baton Rouge, East Feliciana, West Feliciana, Iberville and Point Coupee parishes. That's 80 more home sales than were tallied in the region in November 2011, or an increase of about 16%. Daily Report has the full story here.

Planning ahead: Costco Wholesale Corp. has filed a concept plan with the East Baton Rouge Parish Planning Commission to build a 149,000-square-foot warehouse store at the site of the former Coca-Cola bottling plant on Airline Highway. The national warehouse club signed a purchase agreement in April for an undisclosed price to acquire the 28-acre site from Coca-Cola Bottling Company United Gulf Coast. Though the sale has not been finalized, the company is apparently moving forward with plans for its first location in the Baton Rouge market. Read the full story from Daily Report and see renderings of the new store here.

Take out: BD Kitchen Co., one of the city's few locally owned kitchen stores, is closing its Towne Center location at the end of the month, less than two years after opening. Owners Bill Bethea and Ronnie Daley attribute their decision to permanently shutter the store to a lack of marketing support from shopping center management and a lack of foot traffic, the latter being a common complaint of retailers located on the "back," or Jefferson Highway side, of the development. Click here to read the full story from Daily Report.

Read more from Business Report here: http://www.businessreport.com/real-estate-weekly/12182012/recap#ixzz2FhQ023EG

B.R. home sales up 16% in November

Strong November home sales in the eight-parish region tracked by the Greater Baton Rouge Association of Realtors have already placed year-to-date 2012 home sales ahead of total sales in 2011, with another month of sales still to report this year. GBRAR reports 566 homes were sold in November in East Baton Rouge, Ascension, Livingston, West Baton Rouge, East Feliciana, West Feliciana, Iberville and Point Coupee parishes. That's 80 more home sales than were tallied in the region in November 2011, or an increase of about 16%. The average sale price in November, at $206,249, was also considerably higher than that of the same month last year, when the average home sold for $173,096. Through November, 7,064 homes have been sold in the Capital Region this year, which is roughly 15% more than the 6,122 sold through the same 11-month period last year—and exceeds the 6,604 homes sold in all of 2011. The 11-month total this year is also already ahead of annual sales totals in 2010 (6,386) and 2009 (6,899). And unless December sales this year are far below the 482 recorded last December, 2012 should end up being a stronger year than 2008, when 7,284 homes were sold and the area began seeing impacts from the national recession. Total months inventory—or the number of months it would take to sell all homes on the market at the current sales pace—was also down sharply in November compared to last year. Although the months inventory rose to 7.3 in November from 6.5 in October, it is still well below the 10 months inventory recorded in November 2011.

Read more from Business Report here: http://businessreport.com/daily-report/12172012/Baton_Rouge_home_sales_up_16_percent_in_November#ixzz2FKaZsNNe

5216 Lone Pine Lane, Baton Rouge, 225.234.0022

Immaculate 5 year old home situated in Jefferson Retreat conveniently located near I-12. This family home is move in ready and boasts many amenities. Open floor plan begins in the formal living area which could be used as a home office. Large family room features wood floors, gas log fireplace and opens into kitchen. Bright and airy eat-in kitchen includes slab granite countertops, stainless steel appliances, gas stove, breakfast bar, and tile backsplash. Private master suite has vaulted ceilings and a master bath with his and her vanities, garden tub, separate shower, and a walk-in closet. Good sized backyard with large covered patio perfect for barbeques and entertaining guests. Call Tim at 225.301.7467 to schedule a showing or visit buyorsellbatonrougehomes.com for more information!

 

SOLD, 58240 Elm St, Plaquemine, 225.234.0022

This is one of Plaquemine's best homes in the Garden District! Huge 4 bedroom with an office that could possibly be a 5th bedroom. Rooms include huge walk in closets. This home has been updated in and out with amenities that include new paint, wood floors, ceramic tile, and a beautiful new pond in the front yard. Also a workshop in the back perfect for a man's storage. This home is beaufitul and you'll have to see to believe. Home is move in ready and waiting for you! Visit buyorsellbatonrougehomes.com or follow the link for more information.

58240 Elm St

WITHDRAWN, 11031 Major Oak Dr, Baton Rouge, 225.234.0022

Beautiful one story home on an established landscaped lot. New carpet and wood flooring throughout. Stainless steel appliances, buit-ins, and large living area. For more information visit buyorsellbatonrougehomes.com!

11031 Major Oak Dr

Real Estate Investing: Single Family Home vs. Condo

From Fox Business:

If you’re considering getting into the landlord game, you might wonder whether it’s best to buy a single family home or a condominium.

Many people say to stay away from condominiums because of all the issues with homeowners associations, and they have a point. However, single family homes have many issues, too, so don’t make up your mind so quickly.

Here are several things to consider in this “Rumble in the Investment Property Jungle.”

Round 1: Investment returns

When you’re buying an investment property, the first thing you should do is pencil out your real estate deal to see if it has fair cash-on-cash investment returns. As a general rule, you’ll find that single family homes typically have lower cash-on-cash returns than condominium properties. So a fair deal on a single family home might be a cash-on-cash return of 3 to 5 percent, while a condominium might have 4 to 7% returns. The condominium will probably take this round, but every property is different, so you need to pencil out your specific deal to understand the returns.

Round 2: Tenant turnover

Every time your tenants leave, you’ll need to re-rent the property. And it’s a lot of work! You have to advertise, take calls and emails, show the property, draft a lease, do a credit check, move the old tenant out, move the new tenant in, etc. And even if your old tenant left the place in perfect shape, you still need to fix minor issues, probably paint and maybe have the carpets cleaned.
Smart landlords know that you make the most money by keeping your tenants as long as possible. Apartment/condo units typically turn over every other year, while single family homes typically have much longer tenancies of three to five years. Clear winner on this round: single family homes.

Round 3: HOA vs. non-HOA

The biggest complaint about condominiums is dealing with HOAs and HOA fees. And while there are many HOAs that are in terrible financial, legal and operational shape, there are also many that are well-managed and in very good shape. HOAs can have strict rules, and if you or your tenant breaks them, you have to deal with the fallout. But those rules also keep harmony in the neighborhood and stops tenants from parking inoperable vehicles, appliances, etc., in their yards as might happen with a single family neighborhood. No clear winner here.

Round 4: Ongoing maintenance and repairs

As a single family residence owner, you would need to schedule and handle all the exterior issues — roofing, painting, landscaping — which is going to take up a lot of your time and energy. These are all tasks the HOA would handle in a condo community. Overall, it’s much less work owning a property in an HOA — and that’s why owners pay HOA fees. It’s a condo “KO” on this issue!
Round 5: Value increase

Many people believe that single family homes go up in value more than condos, but there really isn’t any conclusive proof of that. Most real estate, in a general vicinity, is going to appreciate about the same 2 to 3% per year over the long term. So you should exclude this one as a consideration. For building wealth, forget the appreciation and instead go for the better cash flow as noted above in Round 1.
Summary

So those are some of the items to consider. Either one can be a great investment, or a terrible investment, depending on what you purchase, how much due diligence you do before your purchase and how well you manage the property. Do a lot more research and talk to property owners, and then you can figure out how you will win the heavy weight championship of real estate investing!


Read more: http://www.foxbusiness.com/personal-finance/2012/11/26/real-estate-investing-single-family-home-vs-condo/#ixzz2DMUn4CT6

SOLD IN 15 DAYS, 752 Franklin St., Baton Rouge, 225.234.0022

Incredible curb appeal on this charming cottage in Capital Heights. Shaded front yard with mature oak trees lead up to a covered front porch with swing and a recently painted exterior. Upon opening the front door, the wall to wall windows allow an abundance of natural lighting in the living/dining area and showcase the amazing wood floors. The kitchen includes slab granite counter tops, stainless steel appliances, a gas stove, and opens into the dining area. There are three spacious bedrooms perfect for kids or guests. The master bedroom has updated on-suite bath with tiled shower and large walk in closet. Dream backyard with custom deck ideal for weekend barbeques and entertaining guests. Walking distance to mid city merchants, a walking/bike path, and proximity to Towne Centre are just added bonuses to this wonderful home. Call Tim at 225.301.7467 or visit buyorsellbatonrougehomes.combuyorsellbatonrougehomes.com for more information!

752 Franklin St. 752 Franklin St.

SOLD, 3347 Nicholson Dr, Baton Rouge, 225.234.0022

Walking distance to LSU campus, tailgating, and much more is what you will find in this New Orleans style condo minutes from Tiger Stadium. Two bedroom two bath condo features granite countertops, stainless steel appliances, wood floors, and a balcony with great views of Tiger Stadium. Condo amenties include fitness center, private parking, and secure entrances. This would be perfect for a first time LSU student looking to be involved in all the fun festivities LSU has to offer. Motivated seller...Hurry and hear MIKE roar from YOUR backdoor!! Call Tim at 225-301-7467 or visit buyorsellbatonrougehomes.com to learn more!

3347 Nicholson

Capital Region 2012 home sales on pace to match '08 figures

From the Baton Rouge Business Report, Real Estate Weekly:

Three-quarters of the way through the year, homes sales in the eight-parish region tracked by the Greater Baton Rouge Association of Realtors are far outpacing sales in 2011, 2010 and 2009—and are only 1.5% off the year-to-date tally from the pre-recession 2008 sales figures. A total of 5,833 homes have sold in the region through September. That's a nearly 13% increase over the 5,174 sales recorded in the first three quarters of 2011, a 15% increase over the 5,069 sold in 2010, and a roughly 11% increase over the 5,241 sold in 2009. This year's tally through the third quarter indicates just 86 fewer sales than in 2008. GBRAR President-Elect Pat Wattam says she expects 2012 sales to match or exceed 2008 levels when the year is over. "I saw the market turn the corner last November, and what we've seen since is a steady continuation of that," she says. While sales figures are paramount, Wattam says she's also keeping an eye on another figure: the months of inventory for the eight-parish region. In September, it dropped to 6.24 months. A year ago, that figure was at 7.69, and it actually reached as high as 10 months around the start of 2012. Wattam says declining months' inventory is a clear sign of an improving market and that she expects it will continue to fall. She says a healthy market is generally one with about five to eight months of inventory. "With East Baton Rouge dropping below the eight months supply point, that means we're in a very, very steady market. It's not a buyer's market, but it's not a seller's market either," she says. "And in Ascension Parish, that number just dropped to below six months. That tells me it's flipping to a seller's market." —Steve Sanoski

This week's poll question: Do you believe the Capital Region housing market has fully recovered from the recession?

Read more from Business Report here: http://www.businessreport.com/section/businessreport0113?utm_source=contactology&utm_medium=email&utm_campaign=RealEstateWeekly#ixzz2CDYfjKYt

SOLD, 15646 Green Trails Blvd, Baton Rouge, 225.234..0022

This New Orleans style home overlooking the lake has everything and more. Beautiful wood floors throughout the large living room with fireplace along with the seperate dining room overlooking the amazing backyard. Completely covered Gazebo with a flat screen tv, swing, and a firepit for chilly Baton Rouge nights. Master suite downstairs is made for a queen with a large walk in closet, custom framed mirrors, tiled shower and much more.Kitchen features a breakfast area off to the side plus granite countertops and a large granite topped island. This home has everything you are looking for and much more so hurry and schedule your showing! Call Tim at 225-301-7467 or visit buyorsellbatonrougehomes.com for more information!

SOLD, 8922 Rue Felicity Ct, Baton Rouge, 225.234.0022

Traditional Southern home located in a quiet cul-de-sac off Old Bluebonnet! This 3 story residence features 5 large bedrooms and 3.5 bathrooms. The lushly landscaped home sits on .6 acres with a custom pool and floor cleaning system, oversized hot tub, and koi pond. Along with the pool and 2 waterfalls, the backyard includes Satsuma, fig, sweet kumquat, and orange trees. There is also a covered work station behind the boat port. Large open chef?s kitchen with granite countertops, two ovens, and brick flooring throughout. Adjacent breakfast area and game room, perfect for after school and recreational activities. His and her offices on separate ends of the house allow great privacy. Floor to ceiling windows allow tons of natural light into the formal living room along with wood-burning fireplace that is perfect for chilly Baton Rouge nights. Sunroom off the living room overlooking the peaceful oasis in the backyard. Two bedrooms upstairs with built-in desks open to the grand 350 square foot balcony. The third story loft would make a perfect media or sixth bedroom. Master displays beautiful dark wood floors with 2 separate his or her closets. The master bathroom features a new standup shower and separate Jacuzzi tub with gorgeous views of the backyard. Entire home is wired with Intercom system that plays music or can be used to monitor individual rooms. Hurry and schedule your showing today because this one won?t last long! Call Tim at 225-301-7467 or visit buyorsellbatonrougehomes.com to learn more about this one of a kind beauty.

8922 Rue Felicity Court

SOLD, 36440 Reinninger Road, Denham Springs,225.234.0022

Only one owner of this beautiful 3 bedroom 2 bath house in Denham Springs. Huge lot with a fenced in yard perfect for entertaining. Wood floors throughout the living and carpet in bedrooms. Gas fireplace and vaulted ceilings in living area. Separate his and her vanities with separate tub and shower in master bath. Large washer and dryer area. Call Tim at 225-301-7467 or visi buyorsellbatonrougehomes.com for more information!

 

 

21102 Turkey Creek - Mallard Lakes - Baton Rouge

Country living in city limits! Located in a gated community, it is truly one of a kind. Over 33 pristine acres ready for you to build your dream home. This lot offer MANY different views of the lake and more. SUBDIVISION RESTRICTIONS PERMIT A BARN, LIVESTOCK, TENNIS COURT AND GOLF PUTTING/PRACTICE AREA. Call Tim at 225-301-7467 or visit buyorsellbatonrougehomes.com to learn more!

21102 Mallard Lakes

Two more subdivisions proposed for Hoo Shoo Too Road area

From the Baton Rouge Business Report, Real Estate Weekly:

 

When the 90-home gated community of Mallard Park was proposed north of Hoo Shoo Too Road in May, the city-parish Planning Commission denied the development because the developer refused to connect it to outside streets. The Metro Council gave Mallard Park final approval anyway, overriding the Planning Commission. Now come proposals for 239 more homes in the same area. Oak Ridge Estates would be a 149-lot development south of Elliott Road, a little more than half a mile northwest of the intersection of Elliott and Hoo Shoo Too; Mallard Trails would be a 90-lot development in the 22250 block of Hoo Shoo Too, east of Wood Duck Drive. Both developments appear to have extra connectivity rather than one entrance and exit, says Planning Commission spokesman Ryan Holcomb. "I think we'll be able to get the approval," says Mallard Trails developer George Robinson, declining to give details about the 56-acre subdivision. Applicant Brandon Dodson could not be reached for comment on the proposed 66-acre Oak Ridge Estates. Holcomb says details about both developments could be on the Planning Commission's website by Nov. 2. The commission could hear the proposals Nov. 13. —Adam Pearson

SOLD, 10660 Dunmark Road, Denham Springs, 225.234.0022

This large 3 bedroom 2 bath home sits on over 4.25 acres of land on a secluded road in Denham Springs. Home has an RV port and is across from a stocked pond. Along with three bedrooms, there is a separate area for a storage/craft room or could be used as a bonus room. Covered patio in the back would be great for chilly nights and cookouts with family. Call Tim at 225-301-7467 or visit buyorsellbatonrougehomes.com for more information!

SOLD, 38105 Springwood Avenue, Prairieville, 225.234.0022

Beautiful 4 bedroom home in one of Prairieville's most desirable subdivisions. Jefferson Crossing is located conveniently off Hwy 73 which makes it close to schools, shopping, and much more. This two story home has plenty of room for a growing family. Large master suite down stairs and two bedrooms plus bonus room which could be used as the fourth bedroom upstairs. Large kitchen with granite counter tops, wet bar, and a large keeping room off to the side which overlooks the beautiful backyard. Wonderful subdivision for the family with the community pool with cabanas and a 3 acre common ground. Hurry and show this one before it sells. Call Tim at 225-301-7467 or visit buyorsellbatonrougehomes.com for more information!

38105 Springwood Avenue

13067 Cypress Swamp - $325,000 - Moss Pointe - Geismar, LA/SOLD

One of a kind in desirable Moss Point Subdivision. The builder spared no expenses on this one.Open floor plan with 9,10,and 11' ceilings throughout with two 3 ton a/c units with overlapping air-flow. 10' island in kitchen and a rear porch with separate patio. All stainless steel appliance in the kitchen with 36' gas cook top. Other amenities include enlarged bedrooms with crown molding, his and her reading lights in master, double vanity with picture framed mirrors and separate make-up cabinets, huge walk in closets, and all slab granite counter tops. Kitchen features cypress cabinets and wood floors throughout the whole home make it a breeze to clean. In addition to three large bedrooms there is an office with 8' built in desk and upper cabinets. No other home is the subdivision will compare to this one so hurry and see this one. Call Tim at 225-301-7467 or visit buyorsellbatonrougehomes.com for more information!

13067 Cypress Swamp

WITHDRAWN, 39341 Lakeland Avenue, Prairieville, 225.234.0022

Huge family home located in the heart of Prairieville in the desirable Quail Creek subdivision. Four large bedrooms upstairs with a family room, living, kitchen and formal dining downstairs. Wood floors throughout living/ kitchen area and carpet in bedrooms which make it easy for cleaning. Large 3 car garage would be perfect for parking plus plenty of room for storage. The back patio and view of the lake are the best parts of the house though. Stoned patio plus fireplace and covered gazebo make this home great for entertaining your friends and family. Call today because this one won't last long. Call Tim at 225-301-7467 or visit buyorsellbatonrougehomes.com for more information!

39341 Lakeland Avenue

SOLD, 6011 Glenwood, Baton Rouge, 225.234.0022

This immaculate conditioned home sits on a large lot in a highly desirable area. Inside the home boasts very open spaces. Original 9" oak tile hardwood floors, custom kitchen cabinets, fresh paint, gas range in kitchen, new fixtures throughout, and LOTS of windows looking out into the lushly landscaped yard. Sit outside on the LARGE front porch (55x11) and view magnolia trees, japanese blueberry tree, crepe myrtles to name a few. New fencing and landscaping that is irrigated and looks magnificent year round. Seller has AHS warranty in place. This one will not be around long! Call Tim at 225-301-7467 or visit buyorsellbatonrougehomes.com for more information!

6011 Glenwood Drive

New or upgraded real estate apps opening more doors

From the Baton Rouge Business Report, Real Estate Weekly:

 

For a while, it seemed as if the real estate industry was rolling out an app a day, each and every one promising to "revolutionize the way homes are bought and sold," as their news releases routinely and breathlessly promised. As The Los Angeles Times reports, the hyperbole has abated a bit, and the pace of introductions seems to have slowed proportionately, but there's still plenty of app activity because consumers have come to expect information on demand about homes on the market. These days, house hunters routinely hit the streets armed with their smartphones, expecting to be able to stand in front of a house on Elm Street and learn everything from the listing price to the property taxes to the square footage in the powder room and more. So the apps are still coming. Click here for a complete overview of a half dozen new or updated apps—including Zillow Rentals, RentCafe, Revestor, House Hunter, HomeSnap and HomeFinder—that are gaining popularity.

This week's poll question: Have you used a real estate–related app when searching for or selling a home?

Real Estate Recap: October 3, 2012

From the Baton Rouge Business Report, Real Estate Weekly:

Hungry for more: While Galatoire's new restaurant in the Acadian Village Shopping Center on Perkins Road is on target to open before the end of the year as planned, owner John Georges is looking seriously at expanding the venerable New Orleans institution into the Houston market. Georges tells Daily Report he has identified two potential sites in Houston's posh River Oaks neighborhood and that he could open what would be Galatoire's first out-of-state restaurant as soon as next year. Read the full story here.

Industrial giants: LED is working with five industrial prospects that are looking to build projects in Louisiana that are bigger than the Nucor Steel project in St. James Parish, which could be worth as much as $3.4 billion when all is said and done, according to LED Secretary Stephen Moret. Of the five, Moret says, "one, maybe two" could be built in the Capital Region. Those projects could be part of a sustained industrial building boom that might lead to 40,000 new industrial construction jobs in three to five years, he says. Daily Report has the full story here.

On the bright side of the road: Fremin Construction has preliminary plans for luxury townhomes at 3757 Brightside Lane that will be modeled on the company's recent development, Chatsworth Court Condominiums, on South Kenilworth Parkway. The new development is planned for a vacant 2.5-acre tract of land on the south side of Brightside Lane, between the Riverbend subdivision and River Road, but closer to the levee than the adjacent neighborhood. Get more details in the full story here.

Tiger denizen: The 287-unit Tiger Manor apartment complex at State and July streets, not far from LSU's North Gates, has been purchased by a group of investors led by Covington-based Stirling Properties. A sales price was not disclosed. The purchase brings the number of Baton Rouge apartment complexes owned by Stirling Communities I LLC to two, consisting of 367 apartments total. The firm also owns three Lafayette apartment complexes. Stirling Properties will serve as asset manager of Tiger Manor, while Des Moines, Iowa-based BH Management will serve as the primary property manager on-site.

BR port finalizes land deal

From The Adovcate:

The Port of Greater Baton Rouge got the final signature Thursday from a family selling the port a 135-acre piece of property on the Gulf Intracoastal Waterway.

The port agreed to pay $3.1 million for the land, which bundled with previously purchased parcels will be used for future development, ending a long-running dispute over how much the parcel purchased Thursday was worth.

The purchase price of $23,000 per acre for the so-called Mahaffey property roughly split the difference between the $14,000-per-acre port appraisal for the property and the $30,000-per-acre price of the Mahaffey family’s appraisal.

In a letter to the port commission, Executive Director Jay Hardman said both appraisals were fair but used different criteria in valuing the land.

Previous reports on the dispute noted that the higher value was taking into account the surrounding land, which had been accumulated by the port during the last decade.

The port’s contention was that the Mahaffey tract needed to be valued according to what any other purchaser would pay for a piece of landlocked property.

The deal gives the port about 400 acres of developable land between its Inland Rivers Marine Terminal and the Gulf Intracoastal Waterway.

The total amount for all parcels together comes to about $6.4 million, or just under $16,000 per acre.

Hardman noted that’s a fair price for that much land, noting in the letter that its lease rates for undeveloped land is between $4,500 and $6,500 per acre.

In other business, the port’s board of commissioners approved $2.1 million in work to rehabilitate the rail spur at the marine terminal, $1 million of which would come from the U.S. Economic Development Administration.

The board also approved 4 percent raises for the 26 port employees, five of them unclassified.

Hardman, who was included in the raises, said staff hadn’t gotten a raise since 2009, though some got raises in 2010.

Real Estate Recap: September 25, 2012

From the Baton Rouge Business Report, Real Estate Weekly:

 

Landmark deal: Columbus, Ohio-based hotel investment firm RockBridge Capital today announced Monday its acquisition of the 290-room Hilton Baton Rouge Capitol Center downtown, and says the property will undergo a $7.1 million renovation. Prism Hotels & Resorts, which took over management of the downtown property earlier this year, will continue to run the hotel in partnership with the new owner. It was acquired from Commercial Properties Realty Trust, the for-profit arm of the Baton Rouge Area Foundation, for an undisclosed price. Daily Report has the full story here.

Estate sale: Paula Pennington de la Bretonne's estate at 11001 Highland Road will likely set a new benchmark for residential real estate sales in Baton Rouge when it officially goes on the market next week. According to local real estate sources, the asking price for the property, which includes a main house and multiple other structures, will exceed $20 million. De la Bretonne's daughter, Shannon Smith, is handling the listing but would not confirm the asking price or discuss the specifics of the home, which was built at de la Bretonne's behest in the early 2000s. Read the full story from Daily Report here.

Queuing up: Smokin Aces BBQ, which is planning an Oct. 1 opening at 2504 Government St., next to Garden District Nursery, will not be Memphis-style, or Kansas City-style, or Carolina-style, or Tennessee-style. Owner Brian Medlin says it will be a little bit of everything, with some home-style flavors thrown in. "Hopefully it will be called Louisiana-style barbecue," says Medlin, who also owns All Star Catering and recently bought the former Sweets BBQ—and its old seasoned smoker with rotisserie ("the backbone of the place," he says)—which will become Smokin Aces. Daily Report has all the details here.

Real Estate Recap: September 18, 2012

From the Baton Rouge Business Report, Real Estate Weekly:

The sound of silence: Metro Councilman Rodney "Smokie" Bourgeois says he'll recuse himself from voting on a restaurant that is looking to open next to his Perkins Road overpass area restaurant, Georges. City Pork Deli and Charcuterie will likely be before the Metro Council next month for final approval. Bourgeois doesn't appear to have much choice. Section 2.10 of the city-parish plan of government includes a clause prohibiting Metro Council members from voting on items in which they have a "personal or pecuniary interest." Daily Report has the full story here.

Au revoir: Privé Lingerie Boutique is closing its doors at Towne Center today for the final time. "It's been five years, and it's time to move on," owner Heather Savoy says, noting her niche boutique stumbled with the stagnant economy a few years ago and hadn't fully recovered. "It just doesn't make a lot of sense to keep doing it." Savoy says she's going back to work in residential real estate full-time—which she did for 12 years prior to opening Privé in 2007. Towne Center spokeswoman Rebecca Rainer says the shopping center is currently in the final stages of negotiations with two new undisclosed tenants. If both potential tenants do move in, Rainer says, Towne Center will be 100% occupied.

8 years in the making: Since 2004, the Port of Greater Baton Rouge has been piecing together a large tract of land along the Gulf Intracoastal Waterway. As of today, port director Jay Hardman says, they're just one signature shy of obtaining the last piece of an almost 405-acre puzzle. More than a dozen heirs owned various pieces of the tract. "It'll be a good fit for the port today, as well as for future growth in years to come," says Hardman, who adds that the port commission approved the expansion unanimously. "We're pretty well filled up [currently]. We don't have a lot of green space here at all." The total cost of the tract was nearly $6.5 million in self-generated funds; the port does not receive a tax-based revenue stream.

Capital Region included in amended insurance emergency rule

From the Baton Rouge Business Report, Real Estate Weekly:

 

The Louisiana Department of Insurance has amended its Emergency Rule 26 to address concerns of insured homeowners in 23 Louisiana parishes—including East Baton Rouge and surrounding parishes—who were recently displaced by Hurricane Isaac. The emergency rule is aimed to assist displaced policyholders by granting extensions on insurance payments, allowing out-of-network medical care without penalties and forbidding the cancellation of a policy due to a storm-related claim. The amended rule clarifies the parishes in which it applies, and also extends the amount of time insured homeowners have to provide the required written notice about their displacement to their insurance companies. That date is now Sept. 25. That's also the deadline for policyholders to pay for insurance premiums due on or after Aug. 26 without penalty, under the emergency rule. The amendment also includes the suspension of other statutes and regulations in regards to policy cancellations, non-renewals, reinstatements, premium payments, claim filings and related provisions. Get all the details by reading the complete amended rule here. The parishes in which the emergency rule applies are: Ascension, Assumption, East Baton Rouge, East Feliciana, Iberville, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. Bernard, St. Charles, St. Helena, St. James, St. John, St. Mary, St. Tammany, Tangipahoa, Terrebone, Washington, West Baton Rouge and West Feliciana.

U.S. housing market on mend, but full recovery is still far off

From the Baton Rouge Business Report, Real Estate Weekly:

Home prices across the country during the first half of 2012 posted their strongest gains in six years, the clearest sign that more U.S. housing markets have hit bottom. But The Wall Street Journal reports the housing market remains far from normal and that hitting a bottom shouldn't be confused with a full-on recovery, which looks a ways off. Today's rising prices have less to do with surging demand—though hard-hit markets in Arizona, California, and Florida have seen significant investor appetite for distressed homes—than with declines in the number of properties for sale. Inventories of "existing" homes—that is, ones that haven't just been built—are at eight-year lows. New-home inventories are lower than at any time since the U.S. census began tracking them in 1963. In some cities, there are one-third fewer homes listed for sale than a year ago. Here's why prices are rising: There are more buyers chasing fewer homes, and—critically—fewer distressed homes, such as foreclosures. Low inventory is one sign that housing markets may have reached a turning point because many want to buy at the bottom but few want to sell. There are several factors behind the low inventory. Banks have slowed their pace of foreclosures. Investors have snapped up discounted properties that they can convert into rentals. Home builders, struggling for several years to compete on price with foreclosed properties, have added little in the way of new supply. Read the complete story for more details and analysis here.

B.R. home prices fall in July as U.S. posts biggest rise in 6 years

From the Baton Rouge Business Report, Real Estate Weekly:

 

U.S. home prices jumped 3.8% in the 12 months ending in July, according to a new report out this morning by private real estate data provider CoreLogic. The year-over-year increase was the biggest in six years, further evidence that the American housing market is steadily recovering. CoreLogic says home prices also rose 1.3% in July from June. That's the fifth straight increase in both the monthly and year-over-year price indexes. In Baton Rouge, however, CoreLogic reports home prices declined by 0.9% on the year through July. On a month-over-month basis, the numbers appear to show a more positive trend: Baton Rouge home prices increased by 1.8% from June to July. CoreLogic's price index is the third national index to show steady increases. The Standard & Poor's/Case-Shiller index posted its first annual increase in nearly two years last week. And a federal government housing agency has also reported annual increases. Still, the national housing market's recovery is just beginning. U.S. prices are still 27% below their peak in April 2006, CoreLogic notes.

Louisiana home sales up nearly 13% in 2Q

From the Baton Rouge Business Report, Real Estate Weekly:

Boosted by a better than 20% increase in the Capital Region, home sales across Louisiana were up 12.7% in the three-month period ending June 30, compared to the same quarter in 2011, according to a new report from the state's largest association of realtors. Louisiana Realtors reports the Baton Rouge metro region posted a 20.5% increase in residential sales during the second quarter, and that year-to-date sales six months through the year were up 19.4%. Home prices, however, were down 1.9% in the Capital Region during the second quarter; with the average home going for $203,336. Baton Rouge was among seven of the state's eight metro areas to see an increase in sales during the quarter. Leading the way was Lafayette, which saw a 27% spike in sales. That's the same increase by percentage that the area has had through the first half of 2012. Quarterly sales were up 12.1% in the New Orleans metro area, with year-to-date sales 13.6% better than 2011 figures. The lone metro to see a sales decline was Monroe: down 8.5% for the quarter and generally flat year-to-date, off 0.4%. Year-to-date sales across the state are up 14.7% compared to last year. "In general, the Louisiana housing market has shown significant growth in 2012, and is expected to continue the upward trend through the summer," Louisiana Realtors says in its second-quarter report. You can access the complete report here.

Capital Region home sales up again in July

From the Baton Rouge Business Report, Real Estate Weekly:

Home sales in the eight-parish region tracked by the Greater Baton Rouge Association of Realtors have been significantly higher each month this year compared to 2011 figures, and July was no exception. The 731 sales recorded across the Capital Region as of this morning represent a 15.5% increase over the 633 sold in July 2011. Among the largest parishes in the region, Ascension led the increase. The 158 sales there represented a 32% increase over the 120 sold on the month a year ago. In East Baton Rouge Parish, 408 sales were recorded—an increase of 14% over the 357 sales last July. Livingston Parish posted a rare, yet slight, decrease in sales: just the second month this year that has occurred. Ninety-five homes were sold in Livingston in July, compared to 106 in July last year. Sales in the five other parishes lumped into GBRAR's "other" statistical category—West Baton Rouge, Iberville, East Feliciana, West Feliciana and Pointe Coupee parishes—were up to 70 this July, from 50 last year. Seven months through the year, sales across the entire region are up 18.7%—at 4,482. That's 707 more homes sold thus far this year, compared to the 3,775 sold during the seven-month span last year. It's also 9% better than the 4,112 homes sold through July in 2010. Check out the complete July sales figures for yourself here.

Free Ways to Get Your Home Ready to Sell

From Fox Business: 

Getting your home ready to be put on the market is stressful—but it doesn’t have to be expensive. The longer your house stays on the market, the more likely you are going to have to drop your asking price, but experts say there are a slew of free and low-cost cosmetic fixes you can attract more buyers and sign a deal.

Improving a home’s curb appeal is a must to get buyers’ attention. Experts suggest cleaning up any brush, flower beds and gardens, trimming back trees and throwing a fresh coat of paint on the front door.

“First impressions are everything, and that's no different for our homes,” says Angie Hicks, founder of the peer-review website Angie’s List. “Your home’s interior is important when selling a home, but it’s the exterior that helps get potential buyers in the door – or keeps them from trying to get in it.”

Hicks suggests walking across the street to get a potential buyer’s view of the house—look for anything that is offputing or distracting like broken gutters, overgrown hedges or cracks. You want everything to look clean and simple.

Replacing old mulch, adding bright exterior lighting, power washing the house,   painting the front door and making sure the house number is visible are all do-it-yourself projects that will boost the curb appeal without busting the budget.

Once the outside of your house is enticing, it’s time to make the interior look just as good. Before spending any money on repairs, Dan Fritschen, author of Remodel or Move? www.remodelormove.com, advises removing any extra clutter, knick knacks and photos.

“Empty out the closets, empty the shelves and take away all the personal items.” Buyers want to see themselves in the home so the less personal items and clutter the better.

Another cost-free way to spruce up your home is getting rid of any unappealing or taste-specific window treatments. “It’s better to have no window covering then an ugly window covering,” says Fritschen. Window treatments can also distract from a good view—which is often a major selling point. If you are worried about nosey neighbors, throw sheets over the windows,  just don’t forget to take them down when showing the home.

Painting is another cheap way to make a home look new. A fresh coat of paint covers up any smells and marks on the walls and gives a room more appeal. If you are on a budget, consider just painting the trim or molds, it can give an added pop for very little time and money. At the very least, Fritschen says to paint the front door and entry hall.

Make sure all the bathrooms are mildew free with clean and smudge-free mirrors. Mirrors and bright lights can make a space seem larger.

When it comes to carpeting, Fritschen suggests fixing any holes, tears and stains. “If it’s really ugly carpeting then it’s worth it to change it.”

At the end of the day how much you spend to get your home buyer ready comes down to how much of a return on your investment you want. Be careful and research the cost and return on investment on any upgrades, fixes and repairs

"A really astute homeowner will work with a real estate agent to figure out what the comparables are and what they need to do to the home to bring the value higher,” says Fritschen.

Read more: http://www.foxbusiness.com/personal-finance/2012/08/08/free-ways-to-get-your-home-ready-to-sell/#ixzz22y7em0oL

Real Estate Recap: July 31, 2012

From the Baton Rouge Business Report, Real Estate Weekly:

By the numbers: The percentage of Baton Rouge homes in foreclosure fell to 2.36% in May, according to a report from CoreLogic, down from 2.39% from the month previous and 2.47% in May 2011. The local mortgage delinquency rate—that is, the percentage of home loans three months past due or more—also fell in May to 5.39%. That's down from 5.54% in April, and 5.59% a year ago. Daily Report has the full story here.

Game on: Pinnacle Entertainment plans to officially open the doors of its $368 million L'Auberge Casino & Hotel in Baton Rouge at 7 p.m. on Wednesday, Aug. 29. Pinnacle says the grand opening will "feature memorable entertainment, dining experiences and an unveiling ceremony capped off with a stunning fireworks display." Details on entertainment specifics were not released but are expected as the opening date nears.

No finer place for sure: U.S.-based IT services firm Ameritas Technologies plans to open an "information technology center" in the Chase Tower South downtown. Ameritas says it will begin hiring in September, plans to open by October, and hopes to have 300 employees by 2016, with the jobs paying an average of $63,000 annually, plus benefits. The company was lured to Baton Rouge with an incentives package, the full details of which you can get from Daily Report here.

This week's poll question: If you built a new house, would you include energy-efficient and maintenance-free amenities?

B.R. ranked in the middle for affordable housing

From the Baton Rouge Business Report, Real Estate Weekly:

Of the roughly 200 U.S. metropolitan areas surveyed for the new "Paycheck to Paycheck" report on first quarter housing affordability from the National Housing Conference and the Center for Housing Police, Baton Rouge ranks No. 83 on the list of most expensive metros to buy a home. On the same report for the first quarter of 2011, Baton Rouge was ranked No. 81. The report says the average home sale price dropped to $157,900 in the first quarter, down from $160,600 in the opening three months of 2011. New Orleans is ranked No. 91 on the list, up from No. 95 last year, with an average sale price of $147,500 in the first quarter of 2012. The Capital Region appears to be more affordable for renters, according to the report, which ranks Baton Rouge No. 128 on the list of the most expensive metros for renters. The average rent for a two-bedroom unit in Baton Rouge is pegged at $752 in the report, much lower than the national average of $949 among the largest 200 metros. New Orleans is ranked at No. 58 on the rental list, with a $948 average. You can get more details and access the complete report here.

Help keep Baton Rouge beautiful

Help keep Baton Rouge beautiful! Clean up day downtown this coming Saturday, July 21st from 8:00-10:00 a.m.

June home sales jump 13.5% in Capital Region

From the Baton Rouge Business Report:

Halfway through 2012, home sales in the eight-parish region tracked by the Greater Baton Rouge Association of Realtors were up 19% over sales recorded six months into 2011. Year-to-date figures were aided by another strong sales month in June, during which 776 homes were sold, a 13.5% increase over the month last year, according to the GBRAR's latest tally. Sales numbers have been up every month this year, with a total of 3,739 through last month, compared to 3,142 through June 2011. East Baton Rouge Parish has led the sales increases in 2012, up 19.9% with 2,059, compared to 1,717 last year. Ascension Parish's rate of increase isn't far behind, up 19.1% with 710 sales, compared to 596 last year. Livingston Parish sales this year are up 15% to 638, from 555 through June 2011. Sales in the five other parishes lumped into GBRAR's "other" statistical category—West Baton Rouge, Iberville, East Feliciana, West Feliciana and Pointe Coupee parishes—are up 22.2% at 332, from 274. Total year-to-date volume of homes sold in the entire eight-parish region was $706.5 million through June, up 17% over the $603.4 million sold in the same period last year. See the GBRAR's complete sales report here.

Tips for buying a house

From CNN Money

The top 10 things you need to know when buying a home.

1. Don't buy if you can't stay put.

If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner - even in a rising market. When prices are falling, it's an even worse proposition.

2. Start by shoring up your credit.

Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Aim for a home you can really afford.

The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you'll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.

4. If you can't put down the usual 20 percent, you may still qualify for a loan.

There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a down payment as small as 3 percent of the purchase price.

5. Buy in a district with good schools.

In most areas, this advice applies even if you don't have school-age children. Reason: When it comes time to sell, you'll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.

6. Get professional help.

Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

7. Choose carefully between points and rate.

When picking a mortgage, you usually have the option of paying additional points -- a portion of the interest that you pay at closing -- in exchange for a lower interest rate. If you stay in the house for a long time -- say three to five years or more -- it's usually a better deal to take the points. The lower interest rate will save you more in the long run.

8. Before house hunting, get pre-approved.

Getting pre-approved will you save yourself the grief of looking at houses you can't afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.

9. Do your homework before bidding.

Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you should make a bid that's about eight to 10 percent lower than what the seller is asking.

10. Hire a home inspector.

Sure, your lender will require a home appraisal anyway. But that's just the bank's way of determining whether the house is worth the price you've agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.

10 Summer Moving Tips

From REALTOR.com

 

How to prepare for a seamless transition

If you're moving this summer, the busiest season for moving, you know how daunting it can be. But if you create a blueprint for your move, the transition from house to house will go more smoothly.

Here are 10 things you can do to prepare for a seamless transition.

1. Full serve, partial serve or a do-it-yourself move. Can you do it alone or should you hire a licensed moving company for a full-service or partial-service move? This is one of the first and often most difficult questions soon-to-be moving households face. The answer depends on your lifestyle, household size, budget and amount of time you have to get everything accomplished. Get written quotes from at least three licensed moving companies so you know you’re getting the best deal based on your specific moving needs. Moving yourself or doing a partial-service move? Packing calculators can make it easier to estimate the amount of boxes and packing materials needed.

2. Plan to unpack BEFORE you pack. Take photos of each room in the new home before you arrive with furniture, plants, appliances and family in tow. Write down on a clip board where each item should go in your next home before packing, and carry it with you on moving day. List out the major items that need to be assembled first. As you place each item in its new room, cross it off the list and you will be one step closer to enjoying your new home.

3. Be strategic about packing. If you have more than a month to ‘pick up and move’, start early. Complete a free change of address and schedule utilities ahead of time at Moving.com. Start packing early. Whether it’s one room, one cabinet or a drawer at a time, weed through what may be years of accumulation. As you’re going through your belongings, divide everything into these helpful categories: donate to charity, give to a friend, recycle, trash, pack now, or keep handy until moving day. You’ll be surprised at how much you can donate, recycle or give to friends. And, you’ll not be overwhelmed with the task at hand three days before you move.

4. Moving is NOT child’s play. Plan ahead. Consider daycare on moving day, or get help from a friend or family member. Provide lunch or some other appropriate thank you gesture if you do call in a favor. If that’s not an option, prioritize setting up safe places for your children to play in the new home on moving day so they’re not underfoot. This will help everyone remain happy and calm on moving day.

5. Don’t fight with Fido. Sometimes we forget that all the packing and constant in-and-out of visitors is stressful for animals. Consider checking your pet into a daycare facility, or setting up a time for a friend to take them or check them into petday care. Don’t let your four-legged best friends get lost in the shuffle and remember to make day-of moving arrangements.

6. Keep track of small parts. Some items need to be broken down into pieces when moving, but do you know what to do with the small screws and washers that you end up with? Rather than tape them to the furniture, which can result in losing them, put everything in a baggie that is clearly marked and sealed. Keep all of the separate baggies together in one box on moving day and personally take it with you to your new home.

7. Take pictures of electronic hook-ups. Hooking up TVs, DVRs, home theater systems and computers can be challenging. Before unplugging any wires for the move, take a photo of the connections, print them out and label them in detail. This will create fewer headaches when setting up technology in the new home. Keep track of all loose wires using baggies or boxes that are clearly labeled, and personally carry these easy-to-lose items on moving day.

8. Packing cleaning products and toxins. Products such as detergents, pesticides and paint are heavy and unwieldy to pack. Dispose of as many as possible before the move in an eco-friendly way. Call your city’s waste disposal department for guidance on proper disposal. For items that must be transported, pack them in a small box within a larger box for protection against leaks. Don’t overstuff boxes with these items! Consider marking these boxes in a different color, and seal them extra tight. Keep them separate from the rest of the boxes, particularly if you have kids and pets.

9. Consider getting full value insurance protection. If using a professional mover, it may cost a few dollars extra, but it provides peace of mind and eliminates later annoyances. Investing in full value protection means any lost or damaged articles will be repaired or replaced, or a cash settlement will be made at current market value, regardless of age. It's important to note that the required minimum coverage of 60 cents per pound would not cover the replacement cost of more expensive items such as a flat screen TV if damaged in transit.

10. Know your rights. If using a professional mover, research your rights as a consumer with either the Federal Motor Carrier Safety Administration (FMCSA) for interstate moves or contact the state agency within the state in which you reside for moves within state. Also, enlist the help of the Better Business Bureau (BBB) or local law enforcement if the moving company fails to live up to its promises or threatens to hold your belongings hostage. FMCSA requires interstate movers to offer arbitration to help settle disputed claims.

8718 Old Hammond Highway Home For Sale. 3583 sq ft - $489,900

This 4 bedroom 4.5 Bath home is simply a buyers dream. Open floor plan with a beautiful spacious kitchen with stainless steel appliances, brick floor pavers, tons of cabinet space, and a 47 ft granite counter top. The spacious living room has a wall of windows which allows a lot of natural lighting. Also has an office downtstairs. The master suite opens into a large master bath with a garden tub, separate shower, separate vanities and large walk in closets. Each additional bedroom is large with lots of closet space. There is also a bonus room upstairs perfect for children to play. New Orleans style back patio also makes this home great for entertaining. There is so much space and luxury in this home you won't want to miss this opportunity. Call Tim at 225-301-7467 to schedule a private showing.

How to Determine How Much Home Can You Afford

From Fox Business:

Interest rates are low and home prices have plummeted from their 2008 highs, making it an ideal market for homebuyers. But before even starting the hunt, every buyer needs to determine exactly what they can afford and how much they will need for a down payment.

While a down payment is sure to be in the thousands, 90% of new mortgages are government-backed FHA loans, according to Bob Walters, chief economist at Quicken Loans, that only require 3.5%-9% upfront, compared to the standard 20%. Veteran Home loans or VA loans sometimes finance the entire home purchase and don’t require a down payment.

“Most clients that apply for an FHA loan put down the lowest available down payment of 3.5% to 5%. This is the major advantage of an FHA loan,” say Noah Brown, a mortgage loan originator at American Mortgage Group. Keep in mind that if you don’t put down 20%, you’ll likely have to pay for private mortgage insurance on top of your mortgage payment until you have enough equity in the home.

Calculating How Much Home You Can Afford

When you get pre-approved for a loan, the lender will tell you the maximum you can borrow based on your debt to income. Most banks set the debt to income ratio at 45% to 50%, which means you’re debt can’t exceed 50% of your income. Once your debt to income ratio is determined, the bank will tell you how much of a home you can afford.

Experts warn buyers that just because they are approved to borrow a certain amount, it could be more practical to borrow less to have more flexibility with other lifestyle spending. If you like to eat out every night, enjoy weekly shopping trips or have an expensive lifestyle buying the maximum house you can afford could leave you strapped for cash. “Some clients may not feel comfortable with a debt-to-income ratio of 50% and thus look for a lesser value home, with the knowledge of what they can afford / qualify for,” says Brown.

Once you know what you can afford, next you need to figure out the down payment amount and how to come up with it. According to Brown, you should never use the majority of your assets to for your down payment—putting 20% down instead of 25% will leave some emergency funds in the bank.
Collecting funds for the down payment also varies by financial situation. According to Walters of Quicken Loans, the majority of people use money from their savings account or from the sale of a previous home as the down payment.

If you don’t have adequate savings for the payment, you can tap your 401(k) or IRA, although experts warn you could be hit with significant penalties for withdrawing early. Most lenders allow a portion of the down payment to come from a gift as long as it’s a gift with no strings attached. “Lenders want to make sure it’s a gift and not a loan,” says Walters. “They don’t want an over leveraged client.”

You can not charge your down payment or otherwise borrow money through an unsecured loan because they will increase your debt-to-income ratio.

There are non-profit companies that offer eligible buyers assistance in buying a home. For instance AmeriDream, a non-profit focused on helping people find affordable housing, helps people with low and moderate incomes buy homes by offering down-payment assistance. Buyers who are approved for an FHA loan, but don't have the money for the down payment can apply for the AmeriDream down payment assistance.

The Nehemiah Program, which is a down payment assistance program that offers help to buyers who qualify for an FHA loan. With this program there are no limits on income or assets. For a list of down payment assistance programs click here.

Read more: http://www.foxbusiness.com/personal-finance/2012/07/11/how-to-determine-how-much-home-can-afford/#ixzz20KO10ggQ

Real Estate Recap: Zachary named among 10 best towns for families in America

From the Baton Rouge Business Report, Real Estate Weekly:

Plan on it: While recently breaking up and approving items within Mayor Kip Holden's $11.1 million budget supplement, the Metro Council voted to approve $200,000 for the planning of Smiley Heights, marking some of the first dollars appropriated for implementing the FuturEBR master plan for land use and development. The city-parish envisions that Smiley Heights—a mixed-use development including education, retail, residential and commercial components in the Melrose East community, where Greenwell Springs Road and Ardenwood Drive intersect—will encompass 3,500 new households and create 20,000 new jobs by 2030. Read the full story from Daily Report here.

Certifiable: A 204-acre "development ready" site in Port Allen is slated for certification under LED's Certified Sites Program. LED officials say the site—known simply as "All Star" for its ownership affiliated with the All Star Automotive Group—is located north of Interstate 10 on Court Street, about midway between La. 415 and La. 1. The site is one of three LED-certified sites in the Capital Region, including a 60-acre site at the Donaldsonville Industrial Park and a 44-acre site at the Pointe Coupee Port and Industrial Park. Daily Report has the full story here.

Like a good neighbor: Family Circle has included Zachary on its new list of the 10 best towns for families in the United States, noting the city's relatively high median income ($65,749), low average home price ($180,000), low student/teacher ratio (21:1) and high overall schools rating (it gives it a 9 of 10). "The [school] district has been rated the best in Louisiana for the last seven years and was the only one to receive an 'A' rating from the state in 2011," the magazine notes. Check out the complete list here.

Real Estate Recap: June 3, 2012

From the Baton Rouge Business Report, Real Estate Weekly:

Hammering away: With a 13% construction employment increase in May—an addition of 4,900 jobs since May of last year—the Capital Region was the 11th-best performing city among 337 U.S. metro areas tracked by the Associated General Contractors of America. Baton Rouge had a total of 43,600 people working in the construction industry as of May 31, according to the AGCA's latest jobs report. Read the full story from Daily Report and access the complete metro rankings here.

Inch by inch: Baton Rouge's foreclosure rate edged down 0.18 percentage points in April to 2.39%, compared to the rate in April 2011, according to a new report from CoreLogic. That's a scant 0.02 percentage points down from the March rate. Still, Baton Rouge's foreclosure rate remains well below the 3.41% national average and is also lower than Louisiana's rate of 2.49% in April, which represents a decrease of 0.11 percentage points from a year ago. Get the full story from Daily Report and access a map of foreclosures by ZIP code in the Capital Region here.

Second chance: Even if you weren't able to make the Center for Community Progress' 2012 Reclaiming Vacant Properties Conference: Remaking America for the 21st Century, which recently wrapped up in New Orleans, you can check out most of the training seminars and presentations online. Topics range from urban blight to vacant and abandoned property and productive reuse. Check out available presentations here (click on the speaker's name below the presentation for a PDF download).

This week's poll question: When purchasing new appliances, lights and other electrical items for your home, do you generally choose a more energy-efficient product even if it means a higher price?

Your Victory on the NFIP Reauthorization

A message from NAR President Moe Veissi:
YOU DID IT! Late last week Congress finally acted on one of your key legislative priorities, a five-year reauthorization of the National Flood Insurance Program (NFIP). Even better news, we just received word that the president is expected to sign it into law tomorrow, Friday, July 6, 2012.

All the D.C. pundits said nothing would be accomplished in an election year! You just proved them wrong because you didn’t give up, and now you have the victory to confirm it!

The reason I’m writing this today is to reinforce the commitment of your National Association to you and every other member who expects us to persevere on issues of importance to our members and your clients – the consumers, homeowners, and potential home owners of the future.
NAR, with your help and influence, stayed the course to give lenders and home owners more certainty in the mortgage and real estate market place with available flood insurance for existing home owners and those buying and selling.

This has been a long, arduous battle. The National Flood Insurance Program suffered through over 18 short-term extensions and hobbled along for the last four years without a long-term reauthorization forthcoming from D.C.

It was your charge to us not to give up, not to accept anything less than a long-term reauthorization of the Flood Insurance Program. So, we battled to get every inch along those short-term extensions until now when a full five-year reauthorization has been approved.

This fight traveled over several administrations and more than a few presidents of NAR. I’m proud to represent them and the management team in this victory for you.

But, while I’m proud of my predecessors in leadership, and equally as proud of the most effective management team both in Chicago and D.C., I am especially proud of you!

When called upon to respond to our Calls to Action, you did. When asked to invest in your business, you have. And, when asked to step up and participate you resoundingly did that, too.

New battles lay ahead. There will be no easy victories. Now more than ever, it is our responsibility to be steadfast protectors of the American Dream of home ownership. If not us who? If not now when? So, when we call on you like we did to rally, when we call on you like we do to respond to the calls for action, please; continue to show your commitment.

God bless you all. You are what this country is all about! Rally on REALTOR® Party!

You truly are the heart of the deal… many thanks.

Moe Veissi2012 NAR President

Home builders say student loan debt crisis linked to lower home values

From the Baton Rouge Business Report:

A new analysis of government data by the National Association of Home Builders says there's a connection between rising student loan debt and the onset of the housing slump. The analysis says home-owning parents who, in a healthy economy, would have used a home equity loan to help finance their kids' tuition weren't able to do so when the housing crisis led to a decline in loan availability. As a result, it says, students have increasingly taken out loans on their own behalf. "The data thus do not necessarily reveal a sharp increase in borrowing for college education, but rather a shifting in the form of borrowing," the analysis says. "And this is yet another consequence of the harm inflicted on the middle class as home prices fell, leading to a nearly 40% decline in median household net worth." The NAHB cites the 2010 edition of the Federal Reserve's survey of household balance sheets, the Survey of Consumer Finances, for the statistic on average net worth. The analysis also says any impact on housing demand caused by a forecast bursting of the student loan debt bubble will not be catastrophic as some in the industry are predicting. You can check out the NAHB's complete analysis here.

Real Estate Recap: June 26, 2012

From the Baton Rouge Business Report, Real Estate Weekly

More headroom: Tiger Mania's three brick-and-mortar stores in Baton Rouge and its e-commerce website at TigerMania.net have been acquired by Indianapolis-based hat and sports merchandise retailer LIDS Sports Group. Terms of the deal were not disclosed in a news release about the acquisition, which was also vague about the future of the three Tiger Mania stores. Read the full story from Daily Report here.

On the market: A new restaurant has opened downtown, owned and operated by the team behind The Office bar, and with a menu conceptualized by Chris Wadsworth, former executive chef at Nottoway Plantation. Restaurant IPO's menu focuses on tapas with Louisiana ingredients—nearly everything comes from within 150 miles of Baton Rouge—but with some worldly flair thrown in. Read the full story from 225 Dine here.

Florida farewell: BRAF's real estate development arm, Commercial Properties Realty Trust, has sold a 130,000-square-foot shopping mall in West Palm Beach, Fla. The Polo Grounds Mall—which is anchored by a Publix grocery store and is 92% leased—reportedly closed for $14.4 million, or $110 per square foot. The mall shows up on Commercial Properties' 2009 financial report, valued at just a shade over $9 million. Read the full story from Daily Report here.

Rising new home sales point to a strengthening U.S. housing market

From the Baton Rouge Business Report:

Real estate has historically helped bring the United States out of recessions: As interest rates dropped, home sales increased and construction jobs jumped. But as The Los Angeles Times reports, perhaps one of the most significant repercussions of the industry's collapse during the most recent recession has been that housing hasn't been available to play its traditional role in the recovery. That appears to be changing, some analysts say. Sales of new single-family houses in May rose 7.6% compared with April and 19.8% from May 2011, the Commerce Department reported Monday. The seasonally adjusted annual rate of sales was 369,000 last month, the highest level since April 2010, when a federal tax incentive for buyers that had been juicing the market expired, sending sales and prices into a renewed decline. "This is the first time I have heard any kind of pulse in the home building business in the last five years, and I think it is legitimate," says Stuart Hoffman, chief economist for PNC Financial Services Group. "The housing market will be a source of strength to the economy for the first time in years." Last year, new home sales were so weak, they set a record for the most dismal performance on the books. Nationwide, sales have now rebounded 35% since hitting a low in February 2011. The widely read economics blog Calculated Risk has argued for months that a recovery in housing is under way. Nonetheless, new home sales statistics are historically unreliable, and many economists caution against placing too much weight on one month's report. Read the full story here.

Still a Buyer's Market

From the Baton Rouge Business Report:

Real estate pros have been saying for years that the market isn't as weak as we've been hearing, that the bad stuff was only happening in other places, and that the recovery from the non-slump was right around the corner. ? So when Don Stern of Realty Executives South Louisiana, who helped compile the Greater Baton Rouge Association of Realtors' yearly report on Baton Rouge-area real estate trends, says, “The bleeding has stopped,” it's easy to be cynical and note that we've heard that before.

But in fact, people who sell homes for a living can point to a few encouraging factors. According to the annual Trends report, the number of home sales in the Capital Region increased in 2011, although the uptick was small enough that the report's authors still say the market is in a “plateau.”

And in April 2012, sales were up 21% over the same month last year, although much of the action consisted of sales of homes sold for less than $250,000.

Stern says when there's less than 5½ months' worth of inventory available, it's considered a seller's market. Between 5½ and 6½ is a neutral market; more than 6½ is a buyer's market.
“Overall, we're in a buyer's market right now,” he says. “But [inventory] has dropped over the past few months.”

In fact, he says Ascension and Livingston parishes are trending toward a neutral or even a seller's market. East Baton Rouge Parish still has an oversupply of housing, he says, although the average number of days on market is beginning to decrease. (The vast majority of home sales in the Baton Rouge area are concentrated in Ascension, Livingston and East Baton Rouge parishes.)

Even though the total number of sales was up last year, the average sale price was down slightly. The apparent culprit was the higher-than-average percentage of real estate-owned or REO sales, which typically are lender-owned foreclosures. In East Baton Rouge, for example, about one in four home resales was an REO.

Still, the number of foreclosures does not appear to be skyrocketing and certainly is not approaching the levels seen in Florida, Nevada and other hard-hit states. Unless there's a large hidden inventory of homes destined for foreclosure, Stern says, the number of REO sales isn't a major concern.

“We're working through the foreclosure inventory,” Stern says. “If one just looks at average [price], foreclosures have a chilling effect. But if you take the foreclosures out, people [on average] haven't lost value in their homes.”

Sales of attached single-family homes­—that is, condos and townhouses—continue to decrease, as do sales of homes worth more than $400,000. In general, resales are up, while new construction is down.

U.S. home sales report for May a mixed bag

From the Baton Rouge Business Report:

The National Association of Realtors released its monthly sales report this morning for May, and it contains a mix of good and bad news. The good news: Sales in May were up 9.6% compared to May 2011, evidence that the industry is making long-term progress. The bad news: Sales in May—which is typically a strong month in the spring buying season—fell 1.5% compared to April, suggesting the housing recovery remains choppy at best. May sales were at a seasonally adjusted annual rate of 4.55 million units, which is far below the 6 million mark that economists consider a healthy pace. Another bit of good news came in the average home sales price, which in May was $182,600—up 7.9% from a year ago; it was also the highest average price since June 2010, when sales were temporarily boosted by buyers rushing to take advantage of an expiring tax break. Compared to the national numbers, Baton Rouge home sales looked especially healthy in May. The 732 home sales recorded in May by the Greater Baton Rouge Association of Realtors represents a 25% increase over the 585 sold in May 2011. And at $197,713, the average home sale was about 1% better than the $195,885 average sales price in May 2011—and 5% better than the average sales price in April. Read more about the local sales report in a Daily Report story here.

Mortgage rates sink to new record low

From CNN Money:

Mortgage rates have fallen to a new record low, according to Freddie Mac, and the stagnant economy is to blame.

The 30-year fixed-rate mortgage dropped to an average of 3.67% in the week ended June 7, Freddie Mac said Thursday.

This is the sixth consecutive week of declines. The 30-year rate is down from 3.75% in the prior week, and well below from the year-ago rate of 4.49%.

"Interest rates have been on a one-way elevator trip to the cellar," said Mike Larson, housing market analyst for Weiss Research. "We have never seen rates this cheap."

Freddie Mac, one of the nation's largest backers of mortgage securities along with Fannie Mae, also said the average rate for 15-year mortgage -- which is popular for refinancing -- dropped to 2.94%. That's compared to 2.97% in the prior week, and the year-ago average rate of 3.68%.

Rates have continued to slump in tandem with the U.S. economy. Freddie Mac attributed the rock-bottom rates to two recent economic reports: the anemic payroll growth of 69,000 jobs in May, which pushed the unemployment rate up to 8.2%, and the weaker-than-expected gross domestic product growth of a 1.9% annual rate in the first quarter.

 

Despite the low rates, Larson doesn't see any reason to believe that the housing market will pick up, given the state of the economy.

"Housing in some markets has stabilized, but it's not booming, by any stretch of the imagination," he said. "People aren't knocking down doors to buy houses."

The low mortgage rates are happening as home prices hit new post-bubble lows, according to the S&P/Case-Shiller home price index of 20 major markets. Home prices have not been this low since mid-2002.

Livingston, Ascension housing stock among fastest growing in U.S.

From the Baton Rouge Business Report:
In what appears to be further evidence of Livingston and Ascension parishes' continued population increases, each has landed on a top 100 list of U.S. counties and parishes with the greatest housing gains between April 2010 and July 2011. Among parishes or counties with at least 5,000 housing units, Livingston Parish has the 37th fastest-growing housing stock in the United States, and Ascension Parish the 69th fastest-growing, according to new data released by the U.S. Census Bureau. Two other Louisiana parishes also made the top 100 list for housing growth, as measured between April 2010 and July 2011: Orleans Parish at 77th and Bossier Parish at 91st. Livingston's housing stock grew by 2.8% over the 16-month span in the Census Bureau report, from roughly 50,195 units to 51,607. Ascension's stock grew by 2.3%, from 40,757 to 41,702. The county with the fastest-growing housing stock is Long County, Ga., located about 60 miles southwest of Savannah. Though Long County added just 382 units, it represents a 6.3% increase as the county had just 6,030 units in April 2010. Across Louisiana, the Census Bureau reports, the number of housing units grew by 0.6% between April 2010 and July 2011, to just shy of 2 million. You can access the complete top 100 list and more details from the report here.

Real Estate Recap: June 19, 2012

From the Real Estate Weekly:

On file: The number of construction projects permitted in East Baton Rouge Parish in May rose by 3.24% compared to the same month last year, the city-parish Department of Public Works reports. A total of 2,041 permits were issued in May, up from 1,977 in May 2011. However, total commercial projects permitted were down on the month: 57 this year, compared to 91 in May 2011. Total residential projects were also down to 127, from 160 a year earlier. Read the full story from Daily Report here.

Ciao: Enoteca Marcello's Wine Bar & Café at 4205 Perkins Road has been sold to the owners of Lafayette eatery Romacelli and was closed late last week for renovations, owner Gene Todaro says. "Romacelli will come in and make some changes and will be open by the end of July," Todaro says. The nearby Marcello's Wine Market at 4201 Perkins Road is not included in the sale, Todaro says, nor is the Marcello's Wine Market Café in Lafayette. Todaro says the sale "was just a good opportunity for both of us. They were looking to expand into the market." The sale price was not disclosed. To learn more about Romacelli, visit its website here.

Brand-new start: After nearly six years of sitting dormant, construction has resumed on the Bluebonnet Palms Office Park on Bluebonnet Boulevard at Jefferson Highway. Earlier this month, work crews began framing the 4,000-square-foot building that, when completed later this year, will become home to a downtown law firm. Groundbreaking is also expected in the next two weeks on a second 4,000-square-foot building that is currently under contract and will eventually house a physician's office. Read the full story from Daily Report here.

This week's poll question: Under current economic conditions, do you think it makes more financial sense to own a home or rent one?