Gayle's Blog

This article was in The News Star today. Real estate pros know this already, but it's nice to see experts telling the story!
Gayle Causey, 318-614-5615
Keller Williams Realty, Monroe, LA
http://GayleCausey.com
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Louisiana housing prices up from last year

By Mike Hasten • mhasten@gannett.com • July 12, 2009

BATON ROUGE - Add the price of housing to the list of ways Louisiana is bucking the national economic trend.
The Local Market Monitor, a national real estate market assessment firm, says Louisiana is one of only five states to show an increase in home prices in the past year. With a 3.1 percent gain, only New York (3.88 percent) and West Virginia (5.27 percent) outpaced Louisiana's housing market gains.

The report ranks four Louisiana cities - Shreveport, Monroe, Alexandria and Lake Charles - among the top 10 housing markets with a population of 600,000 or less. Lafayette, however, experienced the worst housing price drop in the state.

The report shows that while the Housing Price Index nationally fell 10.2 percent, Louisiana's overall HPI rose 3.1 percent.

The Lake Charles Metropolitan Statistical Area led the state with a 2.09 percent gain in its HPI for the 12-month period leading up to April 2009, while the Shreveport-Bossier City MSA showed a 2.06 percent increase. Monroe's HPI was 1.82 percent, followed closely by Alexandria with 1.81 percent.

New Orleans did not make the Top 10 ranks among larger housing markets, but it did report a 1.67 percent gain. Baton Rouge recorded a slight drop (-0.54 percent).
Phil Hoffman, president of the Louisiana Home Builders Association, said in an interview that this is another example of how Louisiana is bucking the national economic trend.

"Louisiana's homes have not lost value," he said. "We here in Louisiana are faring so much better than most states. It's not that we're totally isolated. Have we got challenges? Surely, we're facing them every day. But there are good signs for homebuilders."

The combination of a federal stimulus of an $8,000 break for first-time homebuyers and people who haven't owned a home in three years and low interest rates is spurring the comeback, he said.

The federal break is available to single persons who make less than $75,000 and couples making less than $150,000.

"When is the federal government ever going to give you money before they take it?" Hoffman laughs.

One of the things that strengthens the Louisiana market, he said, is "Louisiana never had a high rate of foreclosure."

In his monthly column, the LHBA president said the price comparisons "can fluctuate from month to month, but overall Louisiana continues to be among the nation's more stable housing markets. That's good news for homeowners who have made their homes their biggest investment.

"It's also good news for persons wishing to invest in a new home - you can do so without the fear of losing value on your investment," he said.