[StBernard] Home sales tell tale of two markets

[Westley Annis]

While I agree, in general, on much of what was stated in the article I am of
the opinion that property values are much lower in St. Bernard than
anticpated - for both renovated homes and those still distressed.

For instance, I know of a couple of renovated homes that recently sold on
Judy Drive that I have used in my appraisal of other renovated properties.
In my opinion both of the homes sold for about 15% below what they would
have sold for in August 2005.  Even though I am not selling, I was contacted
with offers in the low to mid $30K by spring of 2006 for my own residence on
Veronica Drive - which was cleanly gutted and deconaminated.  Today, we'd be
lucky to get an offer of $20K - and it would probably be less.

Believe me when I tell you the real estate gurus thought values of renovated
homes would be higher by now - and so did a lot of banks and mortgage
companies.  I hear it all the time from the lenders I work with how they are
disappointed with appraisal values.  Granted, there are exceptions, but
there doesn't seem to be any logic or pattern to where renovated homes are
meeting or exceeding antipated values - and the same can be said of
distressed property values.

At this time I have no suggestions as to what folks can do to improve their
property values.  For the moment everyone is hostage to what the market will
bare.  We are in a buyer's market where supply greatly outweighs demand.  I
believe once the LRA money finally starts making its way into peoples hands
we'll start seeing a more active market and that will help values increase.

John Scurich