Willie Stean Jefferson
January 29, 2014
Nonprofit offers Laf. residents’ tax preparation help
January 29, 2014
If all you want in the New Year is new digs, you’re in luck.
The Tri-parish area is still “somewhat” on the cusp of a buyer’s market, according to Bill Boyd, past president of the Bayou Board of Realtors and a broker with Town & Country Real Estate in Houma.
“2013, overall, was much more promising than 2012, and 2012 was not a bad year,” Boyd said.
Housing sales in the Tri-parishes – Lafourche, St. Mary and Terrebonne – exceeded $418 million in sales last year, up from more than $327 million in 2012. Last year, keys to 2,497 homes were turned over to homebuyers, BBR records indicate.
Boyd said 2,360 homes were sold in 2012.
Likewise, the average listing price was a bit higher in 2013. New listings averaged $210,054 versus $182,00 the previous year, he said.
Traditionally, Louisiana housing sales have fared better than the rest of the country, and 2013 proved that more than any other state, according to Norman Morris, senior vice president of governmental affairs for the Louisiana Realtors Association.
“We’ve weathered the housing recession and government downturn better than other areas of the country,” he said. “Certainly, we have had foreclosures, but we didn’t have that devastating market that you’ve seen in other places.”
The big issues for the coastal region: the Biggert-Waters Act.
The measure bouncing around Congress seeks to reform the nation’s flood insurance program, calling on the Federal Emergency Management Agency to raise rates to reflect “true” flood risks. Area Realtors have joined the fight to delay the proposed change, reasoning that the projected insurance hikes would be cost prohibitive for anyone living along the coast.
“That’s what’s hurting the market now,” Morris said.
Congressional leaders agreed last week to postpone Biggert-Waters for eight months, during which time Louisiana legislators are seeking support for a measure that would further delay implementation of the act in hopes that a better solution can be found. Until then, potential homebuyers are left guessing as to whether a new house will fall into a flood zone, thus making flood insurance exorbitantly priced.
“It’s not just a Louisiana problem; it’s a national problem,” Morris continued. “This will potentially affect any state, particularly where you have river systems … in Colorado, even up to Missouri and into Tennessee.
“With these astronomical premiums people are seeing to renew, it’s a national problem.”
Despite the National Flood Insurance Program’s uncertainty, however, Morris said Louisiana continues to defy the odds, especially along the Gulf Coast.
“There’s a lot of stuff that’s coming online in terms of economic development,” he said. “Businesses that are here are expanding and new ones are coming in. We’re seeing that in all parts of the state and that is going to continue to drive the market in a positive direction.”
Boyd said the confidence factor among homebuyers locally is keeping the market strong.
With plenty of homes to choose from, Tri-parish area buyers stand to benefit.
“This market has something for everybody some place,” Boyd said. “I don’t see any shortage of product.
“There may be a few little niches here and there. Say, if someone is looking for a cute two bedroom, gingerbread-style home at or under $150,000, we may have a limited number of those.”
The majority of buyers in 2013, Boyd said, were first-timers willing to invest sweat equity into houses that require a little fixing up.
“These are people who are moving out of mom and dad’s dream house, where they had the large rooms and high ceilings,” Boyd said. “They are realizing that to be on their own, they may have to make some sacrifices.”
For a lower sticker price, they’re foregoing the niceties they enjoyed at their parents’ home, rolling up their sleeves and going to work making repairs. “They don’t mind doing that,” he said.
Because of flood insurance questions, buyers have more recently been migrating to Houma’s west side, Boyd said.
Were the Biggert-Waters Act to be favorably amended, Boyd predicts a whole bailiwick of issues would be solved. Until then, he remains optimistic.
“I’m driving off of Dr. Loren Scott’s last economic report, which predicts the next 24 months along the energy corridor are going to be booming. He expects a lot of jobs to be created here, which means our immediate future is secure.”
That is good news considering the local real estate market hit a real slump in 2010 following the Deepwater Horizon oil spill.
“That incident brought housing prices down much more than people might have thought,” Boyd said. “But the market has since stabilized and we are actually seeing prices start to come back.
“Like I said, we’re very optimistic right now.”
This French/Cajun-style, four bedroom, two bath home at 238 Windsong Way in Westgate subdivision is listed with Town & Country at $279,900. Realtors are optimistic about 2014 housing sales, given the improvement experienced last year. At the close of 2013, the Bayou Board of Realtors’ figures indicate sales exceeded $418 million, with an average listing price at $210,054. “This market has something for everybody some place,” BBR past president Bill Boyd said.
