Old Jefferson Subdivision Baton Rouge LA 70817 is recovering nicely after the Great Flood of August 2016. Homeowners have repaired their homes and investors have moved in to buy low and sell EXREMELY HIGH. Pre-Flood, there were no sales in Old Jefferson in the $214,000 range. There’s been 38 MLS sales sold for a median sales price of $166,900 and $106/sf after deducting an average seller paid concessions of $3,055. Commentary continued below. In this subdivision, seller paid concessions overinflated reported sales prices by $1/sf to $2/sf. When buyers need $5,000, $6,000 to $8,000 in seller assistance to buy a home, that’s not necessarily “healthy” for a housing market.
November 1, 2016 to September 30 2017 Old Jefferson Trends As Reported In MLS Before Seller Paid Concessions were deducted by me in this report
38 Sales $153,000 to $214,000
Median Sales Price $170,000
Median Sold Price Per Sq. Ft.: $108/sf
Median SP/LP% 99 percent
Average Sold Price: $172,067
Average Sold Price Per Sq. Ft.: $107/sf
Average SP/LP% 98 percent
Homes Sold From $88/sf to $123/sf
Average Days On Market: 21 Days
Median Days On Market: 15 Days
Average Home Sold Was 3 Bedrooms, 2 Baths and 1,578sf
The “Average SP/LP% 98%” or Listing To Sales Price Ratio means the average home sold for 2 percent less than listing prices.
HOW SELLER PAID CONCESSIONS OVERINFLATE HOUSING MARKETS
In this subdivision, seller paid concessions overinflate reported sales prices by $1/sf to $2/sf.
Of the 38 sales, 29 of them or 76%, had paid buyer’s closing cost. Only in 9 sales were there no concessions. Sellers paid buyers to buy these homes in the form of paying buyers closing cost from $0 up to $8,670. When a sales price is reported as $172,900 yet the seller had to pay $6,000 in buyer’s closing cost at the closing table, the home actually sold for $166,900 and is over inflated in by $6,000. This is why the average seller paid concession is deducted here because at the closing table, 76% of the time, seller left on average with $3055 less than reported sales prices. AND, APPRAISERS GENERALLY DEDUCT SELLER PAID CONCESSIONS, ERASING THE OVER INFLATION, see below example.
Source: Greater Baton Rouge Association of REALTORS/MLS from 11/01/2016 to 09/30/2017, extracted on 09/30/2017.
