The Baton Rouge residential real estate market is showing signs of stabilization, and 2025 will likely resemble last year, according to Tom Cook of Cook, Moore, Davenport and Associates, who spoke Thursday at the annual Trends seminar hosted by the Greater Baton Rouge Association of Realtors.
Total dollar volume for 2024 rose by 2.29% to $2.65 billion, after peaking near $3.8 billion in 2021.
Dollar volume dropped by 24.35% from 2022 to 2023, while median home prices experienced a slight 2.28% uptick and inventory levels surged by more than 30%.
Livingston Parish saw a 15% increase in dollar volume, surpassing East Baton Rouge (5%) and Ascension Parish (12%). New home prices in Ascension jumped by 10.45% while median sale price rose 2.28%.
“The price of new homes fell because I think builders are trying to offer a less expensive product because interest rates are higher,” Cook said.
He noted that Jackson, Mississippi, experienced a 28.7% increase in median sale price, while Chattanooga, Tennessee, posted an 18% increase.
Meanwhile, the inventory of homes in Baton Rouge increased by over 30% and the median days on market rose from 19 to 28, a 47.37% increase from 2023. However, Cook says the 28-day timeframe is not alarming.
Residential permits in Ascension Parish reached 579 in 2024, marking the lowest number since tracking began in 2015. On the other hand, East Baton Rouge parish saw a 58.49% increase in permits for new single-family homes. The jump pulled the Baton Rouge MSA up to a 14.73 increase over 2023.
Looking ahead to the rest of the year, Cook expects interest rates to drop slightly, but not enough to have a significant impact on the market. Uncertainty surrounding tariffs, though, could impact the market.
“I talked to builders who were saying they are stockpiling lumber and sheetrock,” Cook said. “They have the lumber from Canada and the sheetrock from Mexico. If the tariffs come into effect and are not modified, I think you will see some of those prices increase. In short, 2025 will be more of the same. I don’t see any dramatic changes taking place.”
