As we look back on 2024, it’s no secret that the real estate market in Greater Baton Rouge faced its share of challenges. However, by year’s end, market volume managed to stabilize compared to the previous year, providing a silver lining to an otherwise turbulent period.
Interest Rates and Their Impact
Mortgage rates were a significant hurdle throughout the year, fluctuating between 6.5% and 8%, with much of the time spent closer to the higher end of that range. These elevated rates kept many potential buyers on the sidelines, as their purchasing power fell short of securing the homes they desired. For those who remained in the market, the struggle was real—low inventory left them with fewer options, a direct result of homeowners clinging to the historically low interest rates of 2% and 3% on their existing mortgages. Understandably, few were willing to trade those favorable terms for a move.
The Perfect Storm: Low Inventory and a Softening Economy
Compounding the challenge was a softening economy, which created a perfect storm for the housing market. While there was a glimmer of hope when rates began to trend downward at the end of Q3, they quickly reversed course, leaving both buyers and sellers in a state of uncertainty. Optimism remains that after the upcoming inauguration, some stability may return to the market.
Signs of Resilience
Despite the hurdles, there was a surprising uptick in sales during Q4, signaling a potential shift in momentum. This late-year activity serves as a strong indicator that we may be heading into a busy spring market. Median sales prices also saw a modest increase, rising 1.6% to $265,375, further demonstrating the resilience of the Baton Rouge market.
Looking Ahead to 2025
For buyers, those who are financially prepared will find opportunities to negotiate favorable terms while rates remain elevated. However, as rates begin to fall, the competition will intensify as more buyers re-enter the market. The key for buyers will be to act decisively and secure financing early.
For sellers, preparation will be crucial. Buyers at these higher rates are often stretched thin and will prioritize move-in-ready homes. Investing in updates and presenting your home in its best light will not only attract more interest but also maximize your return. Additionally, offering closing cost assistance can make a significant difference in appealing to buyers navigating higher borrowing costs.
Final Thoughts
The Greater Baton Rouge real estate market has proven time and again to be resilient, even in the face of challenging conditions. As we move into 2025, we anticipate a dynamic market filled with opportunities for those who are ready to seize them. Whether you’re buying or selling, preparation and strategy will be the keys to success in the year ahead.
Now, let’s take a trip down memory lane and revisit 2023.
Ascension Parish
2024 in Ascension Parish saw an increase of 7.8% in median price of $327,950 for detached single-family homes. With 1281 homes closing, the volume rose a slight 2.1%. Out of those homes closed, they were on the market for a median of nineteen days, and the list price-to-sales price ratio held steady at 98.8%.
There are currently 363 homes on the market, with a median list price of $375,000. This equals a 3.3-month supply of homes on the market in Ascension Parish.
East Baton Rouge Parish
In 2024, East Baton Rouge Parish saw a median price of $265,545 for detached single-family homes. Out of the 4,738 homes closed in 2024, they were on the market for a median of twenty-eight days, and the list price-to-sales price ratio held steady at 97.6%. Volume was up 1.3% from 2023.
There are currently 1287 homes on the market, with a median list price of $313,999. This equals a 4.1-month supply of homes in the East Baton Rouge Parish market.
Livingston Parish
In 2024, Livingston Parish saw a median sales price of $246,140 for detached single-family homes. Out of the 1533 homes closed in 2024, they were on the market for a median of thirty days, and the list-to-sales price ratio was 98.0%! Volume actually rose 4.2%.
There are currently 504 detached single-family homes on the market, with a median list price of $275,000. This equals a 3.9-month supply of homes in the Livingston Parish market.
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* All data gathered using ROAM MLS as of
January 5, 2025
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