Wednesday, September 26, 2007

 

Redefining Retirment and Housing Options

As many boomers, such as my husband, are approaching retirement, so many choices need to be made! How many of us really prepare for retirement? How many husbands and wives have had the discussion about what they expect in retirement? I think you would find that husbands and wives, (or life partners) have totally different expectations of what they want retirment to look like! I know that my husband and I haven't talked a lot about it. I think guys just don't talk a lot to start with because it is their nature to do something where it's a woman's nature to talk about it, a lot, make plans, etc!

A few things we have discovered over the past two years, in preparing for this day: 1. You really need to have your financial plan in order. We have worked very hard to put as much in our retirement funds as possible, have sought professional advice on the decision to take early retirement and what we will do to make up for the loss of income. 2. We have a plan, although pretty sketchy, on what his new role will be (yes, he is very brave as he is joining my team!) 3. We have bought two retirement properties that are also income producing - so we have fun places to go that aren't too far away and yet because we are both still working, they are in areas that rent well.

As a REALTOR, I know that listening to my client as they approach home buying and retirement at the same time is crucial. Helping guide them on buying the home of their dreams, or downsizing here in our area so that they have adequate funds to buy a retirement property in a different area.

AND speaking of buying in a different area - if you are thinking of buying retirement property in a different area here are some more suggestions: 1. Rent a property there during the worst time of the year - how about Florida in July and August, or Canada in January and February!!! 2. If you are considering purchasing real estate in a foreign country, you need to truly understand the laws on home ownership and your money. In some countries the only way to purchase is to give your money to an attorney who then purchases the property for you....and you had better know this person VERY well and have total TRUST!! 3. Is the community an open one who will welcome newcomers - or is it a place where people have lived all their lives and you will be an outsider 4. Will your friends and family want to visit you in this new location or will you have to travel to see them. 5. Will this new property appreciate in value so that when it's time for a move to a retirement facility you will have the money you need.

Retirement can be exciting! As much as I first rejected the idea of my husband taking early retirement, now I can see the benefits! Life is too short! If we like to go hiking and traveling, then we need to do that now while we are physically able to do so! If you like spending time with the grandchildren as an active adult and bond with them while they are small, then now is the time!

Make your plans and live your dreams today!

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Wednesday, January 17, 2007

 

Great Real Estate Market? Time to Buy a Vacation Home!!

While the rest of the country is confused about where the real estate market is headed, here in Louisiana we are still forging ahead. It's interesting that historically when the rest of the country was experiencing unprecedented appreciation, our market would be just the opposite. It's nice to be the opposite of rest of the country now as our average sales price continues to increase. Of course, with that we are also experiencing a shortage of inventory in different segments of our market. Gone are the days when you can find a $100,000 home in many areas of Baton Rouge.

With interest rates continuing to remain around 6%, it is still such an excellent time to purchase. With that in mind, maybe it's time to think about buying that vacation home! We were fortunate enough to purchase a condo on the Diversion Canal two years ago and although it's only 40 minutes from our home, it feels like we have really gone on vacation - and yet it is close enough that we can run down anytime.

A vacation home doesn't have to be an expensive condo in Gulf Shores (although that is a GREAT idea!) but someplace you can get away and relax. St Francisville, any waterfront area from the Tickfaw to False River to the Diversion Canal - we have plenty of choices. Think about how you would enjoy a lazy weekend and seek out those places. You know you can always count on us to help you shop!

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Wednesday, April 05, 2006

 

Updated Market Statistics

It is so interesting to keep up with the market changes in the Greater Baton Rouge Area. We are still feeling the effects of Hurricane Katrina but in a good way! Our market has shown some fluctuation over the past 4 months but it is easy to spot the trend that is happening. I want to share some numbers with you.

Number of Closed Properties Average Sold Price Average Days on Market %SP/LP

Dec: 808 $162,312 71 98.08%

Jan: 734 $175,366 78 97.69%

Feb: 726 $169,438 77 97.84%

Mar: 922 $178,078 79 97.70%


You can see that our spring market has kicked in. I can personally tell you that homes priced under $200,000 that are NOT overpriced, and in good condition, sell very quickly. Homes that are not in top shape, and over priced (think Katrina pricing!) are still sitting there.

The jump in homes sold I feel is due to our regular buyers, not the people displaced from the hurricane, getting back into our market. Interest rates are creeping up but are still just a little over 6% on a 30 fixed, conventional loan.

Monday, March 27, 2006

 

Homeowners Insurance Concerns

It has been noted by serveral insurance agents in the Greater Baton Rouge area that our homeowner insurance rates will go up in many instances to 40% more than we are currently paying. Part of this will be a tax to help pay for hurricane Katrina rebuilding and part of it will be rate increases for the individual insurance companies to recover some of the costs from this event. I have also been advised that wind damage may not be covered by our homeowners insurance and that coverage would have to come from the FAIR plan - which is pretty expensive. When questioned about what we can do about these rates, I was told the best thing is to raise your deductibe. I personally told my homeowner insurance agent several years ago to flag my file anytime a rate increase occurs. That way I can see how much I have to raise my deductible to keep my premiums reasonable. I suggest that everyone contact their insurance agents to check this out and to stay on top of this so you are not blind sided with a huge new premium.

Thursday, March 09, 2006

 

Spring Market is Here for Housing!

Yes, we can tell spring is here due to the number of calls we are receiving. People are enjoying the beautiful weather and looking for homes. We have had some great financing news for our area. Since the Greater Baton Rouge Area is in the hurricane disaster area, the Bond Authority is waiving the rule that you must be a first time home buyer to qualify for bond money. That means, if you fit the other criteria of income, credit score, etc., then you may be able to get bond money with a rate between 4.8-5.6%.

A quick update on new construction. We had 183 new homes come on the market in February in the SE Baton Rouge, Ascension, and Livingston areas - bringing to a total of 509 new construction homes on the market. During that same period, 169 new homes went under contract. The average sales price for new construction for the past 4 months was $215,000 for those areas. However, with the cost of materials due to the hurricanes, the new homes are averaging an asking price of $236,000.

A snapshot of the past 4 months home sales, including all ages, all of East Baton Rouge Parish, Livingston, and Ascension shows an average list price of $184,000 with an average sales price of $180,000. We are seeing the average sale price steadily increase, probably due to the number of new construction homes that are finally closing that were sold during Katrina.

We expect the housing market to remain strong with good inventory to choose from.

Thursday, March 02, 2006

 

Market Statistics Shows Market Stable

In researching the continuing concern the public has with the effect hurricane Katrina had on our real estate market I found some interesting numbers. We currently have a 4.26 month supply of homes on the market for Ascension Parish, E Baton Rouge Parish, and Livingston Parish. That is almost the same as March of 2005 as well as July 2005.

I also checked the average sales price, which is $168, 153 for the month of February 2006. That compares with $168,864 for August 2005, prior to Katrina. Now, it is difficult to just look at a one month average, and if you compare that to last January, we are $15,000 ahead. If we do a 6 month snapshot, then the average sales price is $176, 403 with an average days on market of 70. So it appears that our market is holding on to the gains it experienced after hurricane Katrina sales settled down.

Interest rates are still hovering around 6% and with the bond money no longer being tied to first time home buyers, this will be another great year for buying and selling in the Greater Baton Rouge market!

Monday, February 13, 2006

 

Greater Baton Rouge Real Estate Update January 06

As expected, the Greater Baton Rouge real estate market remains strong. Plenty of homes for sale, good new construction starts, and interest rates remaining low continue to fuel this market.

Here is a comparison of homes for sale in January and how many of those were new construction:

E Baton Rouge Parish 1727 on Market of which 397 were new construction
Ascension Parish 520 on Market of which 177 were new construction
Livingston Parish 434 on Market of which 90 were new construction

Comparing January 2005 to January 2006:
Number of homes put on market in January 2006: 1047 January 2005: 1149
Number of homes closed in January 2006: 716 January 2005: 491

Breakdown of sold properties in January 2006 by area:
E Baton Rouge Parish: 413
Ascension Parish: 149
Livingston Parish: 147
Additional sales were balance of MLS area

Average sales price in EBR, Ascension, and Livingston Parishes combined:
January 2005: $152,718
January 2006: $176,948

Number of homes currently on the market: 2696 in these 3 Parishes

It's time to buy a house!

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