Local housing market still climbing

The local housing market continues to ascend, while the national trend is on the decline, a pair of reports released last Tuesday show.

The Houma-Bayou Cane-Thibodaux Metropolitan Statistical Area (MSA) ranked fourth in highest home price appreciation between the third quarters of 2007 and 2008 at 5.18 percent, according to the Office of Federal Housing Enterprise Oversight.

Nationally, home prices were down by four percent in that time period, the OFHEO report said.

According to a home price index report issued by First American, home prices in the Houma-Bayou Cane-Thibodaux area have increased 5.7 percent in September 2008 compared to last year.

Home prices nationwide fell 11.2 percent from September 2007 to September 2008, and early data for October anticipates a 10.5 percent drop, the HPI report suggested.

“These reports confirm what we (realtors) have been saying: Real estate is local,” said Pamela Testroet, president of the Bayou Board of Realtors. “Our market continues to thrive despite the poor economic issues elsewhere.”

The news was not all positive for local housing.

While the area’s year-to-year appreciation was the best in the nation for the first half of 2008, between the second and third quarters, home prices fell 1.64 percent, according to the OFHEO report.

“A variety of things are waiting on the housing market,” said senior OFHEO economist Andrew Levientis. “Inventory is above average levels. Foreclosures in many areas are putting pressures on prices. Credit constraint is preventing some borrowers from getting funding that they would have received previously. Generally, consumer confidence is down relative to where it was three months ago.”

However, Testroet disputed the quarter-to-quarter finding. She noted that none of the factors Levientis mentioned have crept into the local housing market.

“I meet with brokers all the time. I’m not hearing that, and they’re not seeing that,” she said. “What we are seeing are homes staying on the market slightly longer, but the prices have not dropped. I’d be interested to know where that data came from.”

The OFHEO analyzed the combined mortgage records of Fannie Mae and Freddie Mac, which form the nation’s largest database of conventional, conforming mortgage transactions.

The First American HPI collected national, state and local data on home prices, foreclosure activity, real estate sales volume and mortgage loan activity.

The reports suggest that the statewide home price trends parallel the local market.

Yearly home appreciation rates in Louisiana were up slightly, 0.44 percent, but the quarterly rates were down 1.09 percent, according to the OFEHO report.

The First American report revealed home prices are down 1.45 percent statewide from September 2007 to September 2008.

Testroet is concerned that the national consumer confidence crisis may finally have started to get to potential homebuyers here.

“I think their fear is the lenders and putting their confidence in these banks and mortgage companies. With everything that’s been happening, they’re afraid,” she said. “We just need to educate everyone that we are doing OK, and buying a home is still the best investment you can make.”

Contrary to the national trend, the Tri-parish housing market continues to show signs of growth, according to the Office of Federal Housing Enterprise Oversight. * Photo by KEYON K. JEFF