When Jane St. Amant bought her house in Springlake, there were only two other homes in the entire development.
The year was 1994, and the south Baton Rouge subdivision was just beginning to get off the ground. But St. Amant, an experienced Realtor with a feel for the local market, knew it wouldn’t be long until she had plenty of neighbors.
“As a Realtor, I knew it had enormous potential,” she says. “And I knew Baton Rouge could only grow one way—south.”
Fifteen years later, St. Amant’s prescience has paid off. The popular subdivision and sister development Fairhill—on Bluebonnet Boulevard between Burbank and Nicholson drives—have more than 600 homes.
And they’ve held their value. The home that St. Amant bought for roughly $124 per square foot would now sell for an estimated $130 per square foot, she says, and would have fetched even more a little more than a year ago.
Activity in the area also is very brisk. Since the beginning of the year, 26 properties have sold in Springlake and 11 more are under contract. An additional 17 houses are currently on the market.
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“It’s always a very active neighborhood,” says Realtor Linda Fredericks with RE/MAX First. “It’s all newer homes, lots of amenities and very affordable.”
In Fairhill, which is located across Bluebonnet from the older and more popular Springhill, activity has been a bit slower. Only one-third as many homes have sold since January as in Springlake. Two others are under contract, and 20 others are for sale.
Still, both areas have done well over the past few years, and sale prices continue to increase, even during the current economic downturn. Springlake homes are selling for an average of $229,000 this year, compared to $208,000 in 2006—an increase of 10%. What’s more, sellers are receiving their full asking price.
Sales volume also remains strong. Though activity has slowed from its peak of 82 sales in 2006—a year that was still in post-Katrina flux—the first six months of 2009 are better than the first half of the year before and could even surpass 2007.
In Fairhill, values also are moving in the right direction. The average sale so far this year is $282,000, compared to $254,000 in 2006, an increase of 11%. As in Springlake, sellers are receiving 99% of their asking price. That’s obviously not bad, considering the beating other neighborhoods have taken. But volume is slower this year, and homes in Fairhill are spending a lot longer on the market—97 days on average this year, 66 last year but just 32 in 2006.
The popularity of Springlake over Fairhill appears to stem from the former’s desirable mix of affordable homes with amenities in a convenient, safe location. Springlake’s homes have been built on smaller lots—50 feet on average—and don’t exceed three bedrooms. Fairhill, on the other hand, is a little pricier, with 60-foot lots and four-bedroom homes.
“Fairhill runs a little more hot and cold,” says Bonnie Ferrell, who has built many of the homes in the subdivisions. “It’s a little more expensive, so the activity is going to be a little slower.”
In both neighborhoods, buyers are looking for deals.
Ferrell has noticed that demand for resales is a lot stronger than for new homes. One reason, she believes, is because the slightly older homes are more affordable yet still have the higher ceilings and gourmet kitchens most buyers today are looking for. Another reason buyers may be turning away from new construction is because of the uncertainty in the economy.
“People are a little wary of buying a home with a vacant lot next to it,” says St. Amant, who also has noticed the trend. “I think people are a little afraid that some of those vacant lots will be sitting vacant for a little longer, and they don’t want to live next to an overgrown lot.”
Once the economy picks up, experts don’t think those lots in Springlake or Fairhill will be vacant for long.
Springlake is on its last filing, and the area has grown in popularity as the city has grown and spread over the past 15 years. Consider that when Springlake was first developed, there was no Mall of Louisiana—which opened in 1997—or Perkins Rowe, which held its grand opening last year.
Today, the subdivisions are within minutes of the shopping centers and fast-food restaurants at Bluebonnet and Burbank. A Wal-Mart Supercenter at the same intersection was delayed in mid-2008; it won’t welcome shoppers until 2010 at the earliest.
The subdivisions are close to Interstate 10 and, thanks to the Bluebonnet extension and the four-laning of Burbank Drive—also are just minutes from LSU. The area could serve as a gateway to Pinnacle’s casino resort planned for River Road near Gardere Lane.
There are other advantages, too.
“Seldom can you find a subdivision in Baton Rouge that has a pool, clubhouse, and tennis courts that are extremely well kept,” St. Amant says. “I’m always amazed when I go into my neighborhood and consider how nice it really is.”
Click here to see previous stories in this series.
Fairhill[1]
Total sales
2006 - 30
2007 - 26
2008 - 24
2009 - 10
Average sale price
2006 - $254,000
2007 - $266,000
2008 - $261,000
2009 - $282,000
% sold/list
2006 - 99%
2007 - 99%
2008 - 98%
2009 - 99%
Average days on market
2006 - 32
2007 - 44
2008 - 69
2009 - 97
Springlake[1]
Total sales
2006 - 82
2007 - 54
2008 - 49
2009 - 26
Average sale price
2006 - $208,000
2007 - $222,000
2008 - $221,000
2009 - $229,000
% sold/list
2006 - 99%
2007 - 99%
2008 - 99%
2009 - 99%
Average days on market
2006 - 32
2007 - 40
2008 - 41
2009 - 60
[1] 2009 sales from January-June
SOURCE: Greater Baton Rouge Association of Realtors/Prepared by Sandy Daly, of C.J. Brown Realtors
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