Is Baton Rouge Still a Strong Real Estate Market?

Note--Due to technical problems, I've been unable to update my site since the original posting. Sorry for the delay in getting back to you all.


If you're like me, you've heard so MANY opinions about the current strength of the Baton Rouge real estate market. Or perhaps you're considering real estate investing but wonder if this is a good time to do that in our area. Most make the mistake of using national news sources about national statistics to come to a local conclusion.

So, the Baton Rouge Busisness Report recently offered a poll of its "Real Estate Weekly" readers to see what the concensus was on that issue. I thought you'd like to read what your local real estate "watchers" thought:

Poll: Most see housing market remaining strong
Most Real Estate Weekly readers say the Capital Area housing market will remain strong past the end of this decade. Thirty-nine percent of the people who responded to an online survey think the market will remain strong for another three years or more. Twenty-four percent think the market is slipping now, while 20% say home sales will stay on track for another year. Seventeen percent give the market another two years before it starts to dip. More than 250 people participated in the survey.

And here's another tidbit of news along those same lines. This indicates a "still strong" housing market for the Capital Area:

B.R. posts big jump in home prices: Home prices in metro Baton Rouge increased by 9.7% in the first quarter, according to figures released last week by the National Association of Realtors. The median existing single-family home in the Capital Region was $169,400, below the Southern average of $177,800. The only Southern cities to show bigger price increases during the first quarter were Cumberland, Md. (17.1%), Beaumont-Port Arthur, Texas (16.5%), Gulfport-Biloxi, Miss. (15.7%), Oklahoma City (12.1%) and San Antonio (11.2%).

This should serve as clear evidence that regardless what you may hear on national media concerning real estate nationwide, Baton Rouge is certainly its own market!

Well, the numbers are in from the Greater Baton Rouge Association of Realtors’ Multiple Listing Service (MLS) service, as reported in the 1/19/07 issue of the Baton Rouge Business Report.

2006 was the second best year for the eight-parish area, but down 3% from 2005 home sales. Home sales that year were fueled, of course, by Hurricane Katrina. Last year saw a total of 11,007 homes sold in the Capital Region compared to 11,346 sold in 2005. However total home value for 2006 topped $2 billion, nearly 10% more than the $1.8 billion value of homes in 2005.

The Business Report goes on to say that Baton Rouge home values will increase in 2007 by an estimated 4.1%. New Orleans home values will increase by 8.4% in response to the limited housing options there, while Monroe expects to see a gain of 5.9%. Monroe…hmm, go figure.

But check this out…remodeling existing properties. Remodeling fell to 2,496 in 2006 from 2,803 in 2005…BUT last year’s work cost more…a LOT more! While 2005’s improvements cost $196 million, the cost of 2006’s renovations mushroomed 61% to $316 million!! A clear testimonial to the rising cost of labor and building materials.