In 2015, residential real estate experienced its strongest year since the recession, and high-end home sales echoed that success.
And as Business Report details in its new cover story highlighting the top 10 home sales of 2015, the new year is already off to a promising start. Since the beginning of the year, the inventory of homes newly listed at greater than $1.25 million in the real estate multiple listing service totaled 41, and there were six new listings to market in December alone.
Bolstered by the record sale of the year—the $6 million Pennington de la Bretonne estate—the value of the top 10 homes sold in 2015 increased 23% over 2014’s 10 highest sales prices. The floor of the list was $1.35 million, just lower than 2014’s final top 10 home at $1.43 million. The record for the highest-priced home had stood at $4.3 million since 2007.
In East Baton Rouge Parish, four home sales exceeded $2 million, and four others were in excess of $1.5 million. Four of the top 10 properties were in Country Club of Louisiana; the others were scattered about the parish as far as Zachary. All of the homes on the list were existing properties, as East Baton Rouge is seeing a shortage of new construction in the high-end range. But across the board, real estate professionals have been most concerned with the lack of inventory in the market.
“The inventory for luxury homes is much lower than it has been in the past,” says Lisa Landers, a broker/owner with RE/MAX Professional. “This is a good time to sell, provided the home has been updated and well maintained. That price range last year sold for about 90% of list on average.”
Quita Cutrer of Burns and Company, a seasoned agent involved in four of the 10 largest deals of 2015, says the lack of available land in established areas on which to build is also a challenge.
“Normally, those people who can afford high-end properties want to custom build,” she says. “The problem is we don’t have any land or lots to custom build on. In the Country Club of Louisiana, the big estate lots are being depleted.”
The alternative to building is remodeling, and many homeowners are going that route. Cutrer notes that several of the top homes that sold were recently renovated.
The economy and business climate in the metro area also have an effect on the real estate market. When industry layoffs dominate the news—as they have with oil and gas—buyer confidence is affected. The ripple effect of the phenomenon begins at the $300,000 property value. Conversely, as the economy improves, people buy, according to Rick Haase, president of Latter & Blum Inc., the largest real estate operation in the Gulf South and which operates as C.J. Brown in the Baton Rouge area.
“Almost 35% of new jobs created were in the metro Baton Rouge area, and the economy has been healthy,” Haase says. “As a result there is a strong demand, and it’s a good market.”
Read the full cover story, and check out the full listing of the top 10 most expensive home sales of 2015. Also, as part of the new Business Report cover package, read about the top 10 commercial deals and top business deals of 2015.
