What’s the State of the Market in the Great State of Louisiana?

 

 

If you’re like most local buyers and sellers in Louisiana today, you need to carry a fire extinguisher during your real estate transactions. Even though interest rates continue to make their way up, the market continues (for now!) to stay hot.

 

How hot is it?

The median home value in Louisiana as of this spring is $201,414. Since the housing crash during The Great Recession of 2012, home values in our state have increased 37.3%. We’re on a 10 year roll! In the last 24 months alone, the median home value in Louisiana increased 16.1%, 

But how does that compare to the rest of the country?

Not as impressively if we’re being honest. While the average home price pushes new highs each month, we’re trailing the rest of the country, something we’ve also seen over the past decade. 

 

A 37% increase is nothing to sniff at, but if you take the other 49 states into account, the median home value across the country has increased a whopping 99.8%! And in the past two years, the median home value across America increased 29.7%—nearly twice as much as the Louisiana real estate market.

Is this a bad thing?

Not necessarily. Buyers in so many markets in hundreds of towns across the country are getting left out in the cold. Since the Louisiana housing market isn’t keeping pace with national appreciation trends, our lack of skyrocketing price increases makes it relatively affordable. We might be at a historic high, but we’re still at a manageable level, which is attractive to investors, first-time homebuyers, and people from states with more expensive markets.

 

What about rent? 

Even though we’re comparatively affordable on home costs, there’s still a lack of listings. That means a significant number of people are still getting priced out of the market and more renters than usual have to compete over fewer properties. Supply and demand in this case create a “landlord’s market” in which those offering rentals can ask for higher rental fees. 

 

According to Apartment List, the median rent in Louisiana has increased 13.9% in the last year to an average of $1,003. But you’d rather pay too much for rent in Louisiana than in a lot of areas of the U.S.! The national average rent price is around $1,312, or 30.8% more than the average renter pays in Louisiana.

 

However, with mortgage rates continuing to increase, renting v. owning won’t likely feel like such an expensive option in the coming year.

 

And foreclosures?

Across the nation, foreclosures are up 68% from where they were a year ago. Unfortunately, our state isn’t immune. In the past two years, foreclosures in Louisiana have increased a few percentage points and look as if they will continue to do so. This could also be an opportunity for investors and first-time buyers, so financing pre-approval could help you get that literal foot in the door.

 

With the economy in flux, the one sure thing is that the market is sure to continue rapidly changing in the year to come. Good luck out there!

 

Since a title company is your last line of defense when you buy a home, you’ll need one with a solid reputation and proven track record. You want a full-service firm that can handle titles, abstracts, insurance, and more. You want only the best.

Clean Title, LLC, is researching the past to protect your future!

We’re proud of our track record and the recommendations our clients have shared. (Check out some of our reviews on our Facebook page). Check out our home buyers’ Clean Title FAQs and reach out at 985-277-5095 anytime with questions!

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