Is now the good timing to buy condo/townhouse in BR (near to LSU)? (Baton Rouge: real estate)

[April123]

Hi, hope this question doesn't bore you too much as you may have responded to it many times before.;-)

I relocated here in August and started to work at LSU, and am thinking to buy my first home, possibly a condo or townhouse near to LSU as I am still single. The condos I have looked into are usually within 5 miles away from LSU and are kinda pricey, ~200K - 240K. For someone having a job for not long, this is a BIG investment. So I am wondering whether the condo or townhouse has a stable market value and whether it is easy to resell after a few years. Also, is it better to buy new ones than old ones? I noticed that for similar living area and location, the cost of a new condo could be more expensive than an old family house...

Thanks for your time and your suggestions are highly appreciated!
April

[Rosinante]

I'd recommend that you NOT buy now. Wait a year to see how the economy fares. Chances are good that there may be a major economic recession nationwide or even a depression within the next year.

[BRMan]

Originally Posted by Rosinante

I'd recommend that you NOT buy now. Wait a year to see how the economy fares. Chances are good that there may be a major economic recession nationwide or even a depression within the next year.

And, thanks to GO-Zone bonds issued after Katrina, contractors went on a speculative binge building houses and (especially) apartments for several years. I think there is a glut of both, and when the Louisiana economy slows down thanks to currently plunging oil prices, you may get a deal on real estate.

[darylwi]

Agree with you both. With oil prices plummeting, the state is already having to revisit it's budget for next fiscal year. Louisiana isn't hurting much yet, but we'll be a part of this recession yet, and real quick. I'd hold off the major purchases for a while unless I found something already in foreclosure and for a deal. Within Baton Rouge, prices really don't have much more room to go up right now. That means they'll probably drop a little in the near future and then level out again. Too many places in this city are already overpriced.

[BRMan]

Originally Posted by darylwi

Agree with you both. With oil prices plummeting, the state is already having to revisit it's budget for next fiscal year. Louisiana isn't hurting much yet, but we'll be a part of this recession yet, and real quick. I'd hold off the major purchases for a while unless I found something already in foreclosure and for a deal. Within Baton Rouge, prices really don't have much more room to go up right now. That means they'll probably drop a little in the near future and then level out again. Too many places in this city are already overpriced.

By the way prices have fallen, I wonder if the economic calamity of the mid 80s will return. Probably the answer is "no" because we're not as dependent on oil and gas as before, but they still play a major role in the economies of Lafayette, Houma, and Morgan City.

[Rosinante]

Originally Posted by BRMan

By the way prices have fallen, I wonder if the economic calamity of the mid 80s will return. Probably the answer is "no" because we're not as dependent on oil and gas as before, but they still play a major role in the economies of Lafayette, Houma, and Morgan City.

We won't be out of the woods for at least 4 years, I'll predict.

[darylwi]

You would think we wouldn't be so heavily dependent on oil revenue now, but from the sounds of things, we still must be. They're already talking about reworking the budget, hiring freezes, etc.
I don't think 2009 is going to be a good year.

[Rosinante]

If you saw the front page of this past Sunday's Advocate, then you know that the revenue base from state income taxes is in decline.

This will certainly have some effect on housing prices, and, likewise, a decrease in housing starts as time goes by.

The article stated that about 90,000 jobs have gone begging over the past year or two.

[BetaBeta]

Originally Posted by darylwi

Agree with you both. With oil prices plummeting, the state is already having to revisit it's budget for next fiscal year. Louisiana isn't hurting much yet, but we'll be a part of this recession yet, and real quick. I'd hold off the major purchases for a while unless I found something already in foreclosure and for a deal. Within Baton Rouge, prices really don't have much more room to go up right now. That means they'll probably drop a little in the near future and then level out again. Too many places in this city are already overpriced.

How true! And I agree, if you can, hold off, but watch closely. Continue to check the prices in the paper every Sunday for the areas you are interested in. Usually Condos / townhouses drop the earliest and the fastest. In fact that has already happened in some areas (i.e. Jefferson Hwy / Bocage) however with the LSU area its a little different because of the people that buy for college students and then rent them out as extra income once their kids graduate.