The Baton Rouge housing market is currently experiencing a slight cooling in buyer demand, resulting in a more balanced market. In August 2023, the median sale price of a home in Baton Rouge was $239,000 (Redfin), showing an 11.2% increase from the previous year. However, the number of homes sold in August was down 16.1% year-over-year.
There are a few factors contributing to the cooling in buyer demand:
- Mortgage rates: Mortgage rates have risen significantly in recent months, making it more expensive to buy a home.
- Inflation: Inflation is putting a strain on household budgets, making it more difficult for some people to afford a down payment or monthly mortgage payments.
- Supply of homes: The supply of homes for sale is increasing, giving buyers more options and less competition.
Despite the cooling in buyer demand, the Baton Rouge housing market remains relatively strong. The unemployment rate is low, and the economy is growing. Baton Rouge is a desirable place to live, offering a variety of amenities and job opportunities.
Here are some of the key Baton Rouge housing market trends to watch in the coming months:
- Median home sale prices: Home prices are still expected to rise in Baton Rouge, but at a slower pace than in previous years. This is due to the factors mentioned above, such as rising mortgage rates and inflation.
- Days on market: The average number of days a home is on the market is expected to increase slightly as buyer demand cools. However, homes are still selling relatively quickly in Baton Rouge, with most homes selling within a month.
- Inventory: The inventory of homes for sale is expected to continue to increase, giving buyers more options and less competition. This is good news for buyers, as it will put less upward pressure on home prices.
Baton Rouge Housing Market: Home Prices and Trends
According to Realtor.com, in August 2023, the housing market in Baton Rouge, LA witnessed several key metrics:
- Median Listing Home Price: The median listing home price in Baton Rouge, LA was $299,000, remaining flat year-over-year.
- Median Listing Home Price per Square Foot: The median listing home price per square foot was $160.
- Median Home Sold Price: Homes in Baton Rouge, LA were sold at a median price of $280,000.
Sale-to-List Price Ratio: The sale-to-list price ratio was 100%, indicating that homes in Baton Rouge, LA sold for approximately the asking price on average in August 2023.
The housing market in Baton Rouge, LA for August 2023 can be characterized as follows:
- Market Dynamics: Baton Rouge, LA is currently a buyer's market, signifying that the supply of homes exceeds the demand for homes.
- Median Days on Market: The median days on market for homes in Baton Rouge, LA is 53 days.
On average, homes in Baton Rouge, LA are selling after 53 days on the market. The trend for median days on market has seen an increase since last month and a slight increase since last year.
Baton Rouge consists of 36 neighborhoods, each with its own housing market dynamics:
- Most Expensive Neighborhood: Southside is the most expensive neighborhood in Baton Rouge, with a median listing home price of $520,000.
- Most Affordable Neighborhood: Eden Park stands as the most affordable neighborhood, featuring a median listing home price of $40,000.
Baton Rouge Housing Market Forecast 2023-2024
Current Market Data (Data through August 31, 2023):
- Average Home Value: The average home value in Baton Rouge is $215,816, reflecting a 0.8% increase over the past year. Homes typically go pending in approximately 14 days.
- Median Sale to List Ratio (July 31, 2023): The median sale to list ratio as of July 31, 2023, was 0.990.
- Percent of Sales Over List Price (July 31, 2023): Approximately 15.5% of sales were over the list price as of July 31, 2023.
- Percent of Sales Under List Price (July 31, 2023): About 57.3% of sales were under the list price as of July 31, 2023.
- Median Days to Pending (August 31, 2023): The median days to pending a sale in Baton Rouge was 14 days as of August 31, 2023.
Baton Rouge MSA Housing Market Forecast
Forecast for Baton Rouge, LA (as of August 31, 2023):
The Zillow housing market forecast for Baton Rouge, LA as of August 31, 2023, indicates the following trends:
- 30-09-2023: A predicted decrease of 0.1 in housing market index.
- 30-11-2023: A further anticipated decrease of 0.2 in the housing market index.
- 31-08-2024: An expected improvement with an increase of 0.6 in the housing market index.
Overall, the Baton Rouge housing market is expected to remain relatively strong in the coming months. However, buyers should be prepared for a more balanced market, with slower price growth and more homes for sale.
If you are considering buying or selling a home in Baton Rouge, it is important to work with a qualified real estate agent who can help you navigate the market and achieve your goals.
Is Baton Rouge a Good Place to Invest in Real Estate?
Investing in real estate in Baton Rouge, Louisiana is a strategic decision with several compelling reasons:
1. Economic Growth and Stability
Baton Rouge has shown consistent economic growth over the years, supported by a diverse economy including industries like petrochemicals, manufacturing, healthcare, and education. The stability of its economic base is attractive for real estate investors, ensuring a steady demand for housing and properties.
2. Affordability and Favorable Price Trends
The average home value in Baton Rouge is relatively affordable compared to many other U.S. cities, making it accessible for investors with varying budgets. Additionally, the housing market has seen a positive trend in prices, indicating potential appreciation and good returns on investment.
3. Growing Population and Demand
Baton Rouge is experiencing a growth in population, driven by a mix of factors such as job opportunities, education institutions, and a desirable quality of life. A growing population translates to increased demand for housing, both in the rental and buying market, providing excellent prospects for real estate investment.
4. Educational Institutions and Student Housing
With multiple universities and colleges, including Louisiana State University (LSU), Baton Rouge is a hub for students. Investing in student housing can be a lucrative venture, especially in areas close to educational institutions, offering a steady stream of tenants and potential for high rental yields.
5. Infrastructure Development
Ongoing and planned infrastructure projects, like improvements in transportation and public facilities, enhance the overall desirability of Baton Rouge. Investing in areas benefiting from such developments can yield substantial returns as property values tend to rise in response to enhanced infrastructure.
Baton Rouge presents a favorable landscape for real estate investment due to its economic stability, affordability, population growth, educational prominence, and ongoing infrastructure enhancements. These factors combined create a promising environment for potential investors seeking a profitable and sustainable real estate market.