November home sales up 38% locally

There was a 38% increase in the number of homes sold in the Capital Region during November, compared with the year before. There were 576 houses sold in November, according to the Greater Baton Rouge Association of Realtors Multiple Listing Service, compared with 417 in November 2008. Average sale prices were down 3.4%, from $185,622 in November 2008, to $179,272. Livingston Parish saw the biggest improvement in sales, with 145 homes sold in November at an average price of $157,954. That's nearly double the 76 sales that happened last year, at an average price of $144,558. East Baton Rouge also saw a jump in home sales, from 232 in November 2008, to 307. The average sale price was down slightly, from $190,527 to $185,036. Ascension Parish saw the smallest increase in home sales, up from 76 in November 2008, to 90 last month. In the other category, which includes MLS transactions in parishes such as West Baton Rouge, Iberville and the Felicianas, there were 34 homes sold at an average price of $202,970, compared with 25 sales at an average price of $186,950 in November 2008. Through the first 11 months of the year, Capital Region home sales are down 7%, from 6,879 in 2008 to 6,385. The average sale price is down 5.4%, from $202,627 in 2008, to $191,586.

Building permit filed for LSU area shopping center

Permits have been filed with the city-parish for a new shopping center on Highland Road, at the site of the old University Shopping Center. The Northgate Retail Center would have 17,778 square feet for retail and restaurants and the value of construction is estimated at $2.9 million. Campus Apartments, a Philadelphia-based company, bought the site in 2007 for $4.1 million. The company announced plans to build a mixed-use development that would include student housing and retail. Those plans have been slowed by the recession, but in recent months, two New Orleans-based commercial Realtors put up signs on the property.

Foreclosures, delinquencies up in Baton Rouge

The rate of foreclosures in metro Baton Rouge increased by half a percentage point in October, when compared with the year before. According to First American CoreLogic, which tracks real estate data, the rate of outstanding mortgage loans that were foreclosed upon in October was 1.71%, compared with 1.21% in October 2008. Despite the increase, that’s lower than the national average of 3.02%. The number of homeowners who were behind on their mortgage payments was also up. First Americans says 3.58% of Capital Region mortgages in October 2008 were 90 days or more delinquent, compared with 5.31% this year. That's also better than the national average, where 7.7% of mortgages are three months or more past due. In October 2008, 4.54% of U.S. mortgages were delinquent.

Poll: Many readers to participate in comprehensive growth plan

Forty-one percent of people who participated in a Real Estate Weekly poll say they will participate in the meetings next year to help develop a new comprehensive growth plan for East Baton Rouge Parish. Forty-eight percent of people who took the survey say they won't participate in planning and 11% are undecided. Nearly 100 people participated in the survey. The kickoff meeting for the master plan will be held at 5:30 p.m. Jan 26 at the Louisiana State Museum.

This week's question: Do you expect the number of foreclosures and delinquencies to drop locally in 2010?

Tom Cook: Neighbors Federal Credit Union purchases site for new branch

Several local credit unions have been expanding in the Baton Rouge market. Neighbors Federal Credit Union has joined that number with the purchase of a site on Coursey Boulevard at Hickory Ridge. The sale took place for $722,660 or about $10.50 per square foot for the 1.58-acre site and closed Thusday. The seller was SVNA Investment. Mike Falgoust and Justin Langlois with Sealy & Falgoust Real Estate represented the credit union and Ben Skillman with Skill Real Estate represented the seller. According to Langlois, the site was zoned C-2 and was located outside of the flood zone. The property made up the hard corner of Coursey and Hickory Ridge. The site was protected by a traffic light and had approximately 225 feet of frontage on Coursey. “This is an exceptional buy for a site on Coursey with signalized access. Where can you find a hard corner on Coursey for $10.50 per square foot?” says Langlois. Neighbors intends to build a new branch on the site next year.

(Appraiser Tom Cook owns Cook Moore and Associates. Reach him at 293-7006 or TCook@cookmoore.com.)

Brian Andrews: Pushing on a rope

The relationship between borrowers and bankers is heading into dark territory as we end the year. It appears that the financial fortunes of the largest banks are turning positive again while the plight of small businesses and individuals continues. So it might seem logical that those still in the doldrums of the recession would get angry at those who are emerging.

But is getting mad at the banks going to do any good? Can you argue your way into a lending relationship with a bank at a time when credit quality is still tenuous? Some would say that to do so is like pushing on a rope -- no matter how hard you push, you cannot get the person on the other end to move.

And now we have the power of the executive branch of the federal government pushing on the rope right along with us. President Barack Obama called the heads of major banks on the carpet Monday to fuss about the lack of lending. Of course, not many of them showed up due to bad weather and conflicting schedules, but the message to those who attended was clear: You guys caused this problem, the people bailed you out and now it is your obligation to return the favor by making loans to the people. The creditworthy ones. The ones who can pay you back. But don't make any bad loans. 'Cause we aren't going to bail you out again. Please?

In my career as a banker and as a mortgage broker I have never witnessed a situation when someone successfully argued a banker into making a loan or guilted them into extending credit. The credit decision is not emotional, or it shouldn't be, but is based on solid underwriting, or it should be. Until the bankers feel better about the economy and the ability of borrowers to repay loans, don't expect them open their vaults even if those vaults are full of cash.

Getting mad will not get you the loan. Making a solid proposal that anticipates and mitigates risk is the only way.

(Brian Andrews is a certified mortgage banker specializing in the financing of commercial real estate. His business is Andrews Commercial Mortgage and he can be reached at brian.andrews@acmla.com.)

Real estate recap: Zehnder buys Bluebonnet office building ... Baton Rouge housing market still one of nation's best ... Baton Rouge landmark hotel sold

Growing company gets more room: Zehnder Communications, a fast-growing advertising and marketing firm, has purchased an office building on Bluebonnet Boulevard and plans to move its local operations there next month. Zehnder bought the 4,020-square-foot building in the Bluebonnet Parc at Claycut for $630,000, says Troy Daigle of Donnie Jarreau Real Estate, who brokered the sale. The building, which had been occupied by a home health company, was vacant. New Orleans-based Zehnder had been in the LUBA building since Hurricane Katrina.

Continuing to hold on: Baton Rouge is expected to be the best large market for home prices, according to a quarterly forecast released today. The Local Market Monitor looked at home price performances for more than 300 metro areas. Officials note that even the top markets aren't expected to see home prices increasing, rather values should remain steady. New Orleans was ranked sixth, while Lake Charles was ranked as the fifth-best small market. Other large markets expected to do well include Columbia, S.C.; Fort Worth, Texas; and Houston.

History has a price: The Bellemont Hotel on Airline Highway between Greenwell Springs Road and Winbourne Avenue, sold Friday for $525,000, according to representatives of Stirling Properties and Coldwell Banker One. The hotel had 305 guest rooms, while the Great Hall conference center comprised 32,000 square feet, according to a sales listing. The site is about 18 acres, says Pam Coxe, the selling agent along with Debbie Accardo of Coldwell.