Louisiana Housing Market: Home Prices & Trends

Overview

Supply

Louisiana Housing Market Overview

LA housing prices show a 8.4% YoY rise as of January 2025. This consistent increase in home prices indicates the strength of the housing market. Currently, the median home price in Louisiana is $252,500. The number of homes sold has decreased by 5.8% YoY.

You can further check the market competitiveness through median days on the market. Homes in Louisiana now spend as long as 74 days on the market before going under contract. These aspects collectively give an overview of the pace and affordability of the LA real estate market.

What Does it Mean for Home Buyers and Sellers?

If You're a Buyer: While mortgage rates of 7.06% are relatively high, LA real estate trends show that the market still favors buyers. You now have more negotiation power due to the extended median days on the market. Fewer homes being sold means less competition for you. Don’t hesitate to buy that affordable condo in Baton Rouge, or that stylish single-family home in New Orleans.
If You're a Seller: Despite the increasing median home sale price, the LA housing market is currently not ideal for you. Turning a profit is difficult as homes are spending more days on the market. The number of homes sold is also falling year-over-year. If you still want to sell your home in the Louisiana market, you may have to consider a price drop.

Louisiana Housing Supply

The Louisiana housing market will see a growth in housing supply as new construction expands. Right now, however, the number of houses for sale in Louisiana has witnessed a 5.4% dip YoY. As of January 2025, there are 14,073 Louisiana homes for sale. New listings have also dropped by 5.8% YoY. Presently, the Louisiana housing market is a buyer’s market, despite having 5 months of supply. Fewer months than 6 indicate a seller’s market, while more months indicate a buyer’s market.

What Does it Mean for Home Buyers and Sellers?

If You're a Buyer: You have the upper hand! The market is slow and you have time to negotiate. Nevertheless, you must act soon since inventory is on the decline. This may limit your options, create competition, and eventually increase LA home prices. In such a situation, the relatively high mortgage rates might get even higher.
If You're a Seller: You might earn less profits by selling your house in Louisiana now. You could wait until the market situation changes. The decreasing number of homes sold can deter homes from entering the market. If you wait long enough, the market might turn into a balanced market. Furthermore, limited options may increase demand and fetch you a few offers.

Louisiana Housing Demand

The percentage of homes selling above the list price is a key indicator of housing demand. When more homes sell for more than the list price, it shows strong buyer competition and high demand. A decline suggests more supply.

Only 10.6% of houses in Louisiana sold above the list price in January 2025. Meanwhile, 28.7% of homes needed price drops to get sold. The 96.8% sale-to-list price ratio suggests fewer bidding wars and more price flexibility for buyers.

What Does it Mean for Home Buyers and Sellers?

If You're a Buyer: The LA real estate market is currently in your favor. More homes (28.7%) are being sold with a price decrease than those selling above their listing price (10.6%). This indicates that buying a house in Louisiana now would be a lucrative investment for you.
If You're a Seller: You'll need patience to get the right price for your property in Louisiana. You can wait until spring and summer when the housing demand is expected to rise seasonally. Right now, the Louisiana housing market is tilted towards buyers. In most cases, this means that your home can only sell if you undervalue it.

Is it a Buyer’s or Seller’s Market?

Strong
Buyer

Buyer

Balanced

Seller

Strong
Seller

Buyer’s Market

Seller’s Market

Balanced: Neither buyers nor sellers dominate the market. Supply meets demand, prices stay stable, and both parties negotiate on an equal footing.

Is it a Buyer’s or Seller’s Market?

As of January 2025, the Louisiana housing market is balanced, with a few metrics leaning toward home buyers. Moreover, homes in Louisiana spend an extended amount of time on the market. Thus, sellers have to offer concessions to sell their homes, while buyers have more leverage. But the decrease in the number of new listings could soon start hampering buyers’ interests. The 30-year fixed mortgage rate of 7.06 % may further reduce buying power.

A decrease in home inventory and the dropping number of newly listed homes can create more demand. This can benefit sellers as they can get better deals in high demand. Nevertheless, more homes are currently being sold with price drops, despite the increasing median home sale price in LA. If sellers make potential improvements and upgrade the kitchens or curb appeal, that may bring a good return on investment. Bottom line: It’s the right time for home buyers to make their purchase in Louisiana.

Louisiana Housing Market Insights

The housing market in Louisiana has seen steady shifts in recent years. Louisiana real estate’s rising prices are a result of natural appreciation due to inflation. Otherwise, the LA housing market is experiencing low demand and reduced home inventory. The demand for new construction seems to have reduced due to the dip in the number of homes sold YoY.

The high mortgage rates of 7.06% could make housing in Louisiana less desirable to buyers. Housing markets like Lake Charles and Baton Rouge have cooled due to extremely low competition. Homes in Lake Charles spend an average of 140 days on the market. So, as a buyer, the market is in your favor. Simply check for moving expenses and HOA fees when buying a house in Louisiana. The Louisiana housing market forecast for 2025 suggests a steady growth. The market is expected to stabilize and then tilt towards sellers as a response to economic conditions.

Nationwide Migration Trends

The state of Louisiana had the most outbound migration in 2024. Instability of the job market, natural disasters, and poor infrastructure are the top reasons for this migration.

On the other hand, the current cost of living index of Louisiana is 92, which is lower than the national average. Cities like Monroe and Shreveport are among the most affordable cities in the state.

Frequently Asked Questions

Will the housing market crash in Louisiana in 2025?

Ans. According to Louisiana housing market forecasts, it’s very unlikely that the market will crash. Prices are projected to experience natural appreciation in 2025.

Is the average home price in Louisiana dropping?

No, the average house price in Louisiana isn’t dropping. In fact, the median home sale price has increased by 8.4% YoY as of January 2025. Homes in markets like Baton Rouge and Lake Charles experienced a YoY growth of 32.6% and 31% YoY respectively. However, the current market is slow and homes for sale in Louisiana are seeing price drops.

Which are the best places in Louisiana to buy property?

New Orleans, Baton Rouge and Alexandria are some of the best places to live in Louisiana. This is because of the job and education opportunities that these cities provide, as well as the availability of convenient transportation.

Should I wait for some time before buying a house in Louisiana?

No, now is probably the best time to buy a house in Louisiana. The season between December to February brings fewer buyers, allowing you to negotiate better. The median home price in Louisiana is currently $252,500. If you plan on buying a house in Louisiana, you should first get a mortgage pre-approval.

How can I list my home for sale in Louisiana?

You can list your home for sale on the Louisiana MLS using flat fee services. Find the best Flat Fee MLS listing company in Louisiana to save on traditional Realtor fees. Houzeo can help you save at least 3% on listing agent commission.

What is the average mortgage rate for buyers in Louisiana?

The average mortgage rate for buyers in the Louisiana housing market fluctuates between 6.3% and 7.1%. When you apply for a mortgage, always check your credit score and the current interest rates with lenders.

How does Louisiana’s housing market compare to the national market?

The LA housing market is slower than the national market, with higher price growth yet lower demand, due to increased relocation to other states. The cost of living in Louisiana is 92, 8% lower than the US average.

Is now a good time for selling or buying a house in Louisiana?

Now is the best time to buy a house in Louisiana. Buyers can benefit from low demand and the extended number of days on the market. Nevertheless, a mortgage rate of 7.06% could restrict your buying power. Check your city’s current trends in housing prices to make an informed decision.

How have home prices changed in Louisiana over the past years?

The median home prices in Louisiana have risen over the past years as a result of inflation. This natural appreciation is contrasted against the slow market and increased price drops. Although markets in LA have now cooled, some cities like Baton Rouge and Lake Charles have seen a double digit YoY price growth as of January 2025. Check your home’s fair market value with our free home value estimator to know where you stand.

What is the Louisiana housing market forecast for 2025?

The housing market in Louisiana is expected to balance in 2025. Decreasing inventory brings hope for an increased urgency and more competition among buyers. This could result in a further price rise and a tilt towards sellers.

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