The Baton Rouge Residential Market: A Snapshot of 2024 and Beyond
The residential real estate landscape in **Baton Rouge** is gradually stabilizing, positioning 2025 to resemble the dynamics we witnessed in 2024. This insight emerged from Tom Cook, a representative of **Cook, Moore, Davenport and Associates**, during the anticipated Trends seminar hosted by the **Greater Baton Rouge Association of Realtors**.
Market Trends: Gains and Losses
In 2024, the total dollar volume experienced a modest **2.29% increase**, reaching an impressive **$2.65 billion**. This rebound comes after a significant drop from the peak of **$3.8 billion** in 2023. The previous year witnessed a **24.35% decline** in dollar volume; however, median home prices reaped a minor boost, showcasing a **2.28% rise** amidst market volatility.
Shifts in Demand and Pricing
One standout trend is in **Livingston Parish**, where dollar volume surged by **15%**, outperforming neighboring areas: **East Baton Rouge** at **5%** and **Ascension Parish** at **12%**. In Ascension, new home prices escalated by **10.45%**, contributing to a robust median sale price increase of **2.28%**.
Cook noted, “The price of new homes fell because builders are striving to provide more affordable options in the face of **higher interest rates**.” This sentiment mirrors broader trends observed in neighboring cities—**Jackson, Mississippi** saw a notable **28.7%** increase in median sale prices, while **Chattanooga, Tennessee** reported an **18%** uptick.
Inventory Levels and Market Dynamics
The inventory of homes in Baton Rouge has risen drastically, by more than **30%**, with median days on the market rising from **19 to 28**, marking a significant **47.37% increase** from the previous year. Despite this shift, Cook reassures that the current **28-day timeframe** should not cause alarm for prospective buyers or sellers.
Permits and Future Construction
Interestingly, residential permits in **Ascension Parish** recorded their lowest levels since monitoring began—only **579 permits** in 2024. Conversely, **East Baton Rouge Parish** reported a remarkable **58.49% increase** in permits for new single-family homes, elevating the Baton Rouge MSA to a **14.73%** rise over 2023.
Looking Ahead: Market Predictions
As we traverse the remainder of 2024, Cook anticipates a slight **drop in interest rates**. However, he cautions that such changes may not substantially influence the housing market. Ongoing uncertainties regarding tariffs pose a potential threat.
“Builders are stockpiling crucial materials like **lumber and sheetrock**,” Cook explained. “If tariffs on lumber from Canada and sheetrock from Mexico come into effect without modification, we could witness a surge in prices.” In summary, 2025 is expected to resemble **2024** closely, with no dramatic changes on the horizon.
For more insights into market trends, consider visiting the Realtor.com Research Center for up-to-date data and analysis.
