Louisiana has a backdoor shot to the mainstream with the Duck Dynasty reality TV show on A&E. Even for those who would never be caught dead rocking a beard and can’t hit a barn door with a shotgun, some people are picking up on the recent Louisiana property market trends and statistics that reveal some interesting trends and opportunities.
Trending Now: Louisiana Real Estate
There’s a lot more to the Louisiana property market than most realize, and many advantages of investing here that continue to float under the radar of U.S. and global investors.
However, between low taxes, high revenues, “back-to-the-earth” mentality, and a desire for more space and less competition, there are many reasons Louisiana real estate could be a hot pick for investors in 2014.
The big question is: where are the deals, bargains, and low hanging fruit for distressed property and debt investors?
Let’s take a look at what the analysts are saying, what the latest digits look like, and who’s holding the deals.
On the Hunt for Louisiana Real Estate and Mortgage Data
One factor that has certainly helped local investors reap such big profits and has assisted them in keeping state property secrets to themselves is the lag in data and lack of access to current data online.
This is even true of LSU’s (Louisiana State University) Real Estate Research Institute which is still a year or more behind on reporting online according to this link, as well as the Louisiana Realtors Association which is still publishing Q2 data in Q4.
Fortunately BankProspector’s feed from Louisiana banks provides the most up-to-date numbers on local foreclosure activity, REOs and non-performing mortgage loans for assisting out-of-area investors.
LA Realtors Market Statistics:
- Average sales price rose $30k to $190k from Q1 to Q2 2013
- Bank equity capital of 146 FDIC institutions up 63.8% (triple the national average)
- LA ranked #1 exporter in the U.S.
- Natchitoches ranked top for average sales price at $245,252, followed by Baton Rouge at $214,976
REO Commander: Q3 2013 LA Distressed Bank Asset Figures
Q3 data highlights:
- Louisiana bank REOs on hand top $303M
- Little change in figures was experienced between June to September 2013
- LA has one of the highest percentages of multifamily REOs at almost 6%
- Construction REOs made up the bulk of LA REOs at $115M
- There are 4x more residential non-performing loan notes than REO at $400M
- 1-4F first-position non-accrual loans outnumbered all other non-performing residential loans
Top 5 Louisiana Banks with Foreclosed Multifamily REO:
Top 10 Louisiana Banks with Foreclosed Construction REO:
- Iberia Bank
- Whitney Bank
- First Bank and Trust
- First National Bank
- The Union Bank
- First American Bank and Trust
- First NBC
- Fidelity Homestead Savings Bank
- Sabine State Bank and Trust
Top 10 Louisiana Banks with Residential First Position Loans 90+ Days Late:
- Iberia Bank
- Abbeville Building & Loan
- Saint Landry Homestead
- The Evangeline Bank and Trust
- First National Bank
- Whitney Bank
- Bank of Louisiana
- Rayne Building and Loan Association
- Fifth District Savings Bank
- Caldwell Bank and Trust
Trend Watch: What’s Moving the LA Market Now?
1. Property Taxes
A new interactive property tax heat map from CNN Money shows that Louisiana boasts among the lowest property taxes in the country – especially in terms of percentage of property value, which makes it a high-value acquisition state with plenty of room for price growth and broader profit margins for those flipping properties.
Areas with more affordable property are increasingly becoming in demand as the U.S. market rebounds. This pegs Louisiana as one of the best choices for locking in big spreads and possibly equity windfalls over the next few years.
2. The Best Time of Year for Buyers
Zillow says the end of year holiday season is the best time of year for buying homes. This doesn’t just apply to retail home buyers or residential either. Less competition, lower home prices, more serious sellers, and faster loan approvals are all reasons that Zillow gives to support this being a buyers’ market season. So whether buying properties to hold for personal use or making acquisitions for flipping or long term hold, this is a great time.
3. DebtX Stalls
A new Bloomberg report reveals recent efforts to shed distressed mortgage debt by HUD failed, with low ball offers not deemed high enough to be accepted. Around $5 billion in non-performing FHA loans are expected to be auctioned off after December 10 by DebtX, but those looking for smaller portfolios and individual properties may be better off looking direct to banks.
4. LA Destination Tourism
The Duck Dynasty Christmas special on TV is just the tip of the iceberg of the Robertson clan’s monopoly on the holiday. The Montgomery family’s empire now encompasses many commercial endeavors, including the controversial new vineyard. What most don’t know is that the famous family has become a huge holiday draw with pilgrims coming from all over the country to visit.
Not into the beard bonanza? Louisiana has some other upscale and more refined destination options including Louisiana Castle, which can be booked for private weddings. Perhaps, a well-timed commercial property purchase could position you as both the ruler of your own Louisiana dynasty and in receipt of great rents and royalties.