According to the Census Bureau, the population of East Baton Rouge was roughly 450,000 as of last year, while the population of Baton Rouge proper was roughly 200,000. This is where things get confusing because while some consider them the same city, others don’t.
Being a realtor in Baton Rouge changes depending on how you think of the city. If you consider the city separate from the Parish, things don’t look good, but they look a lot better if you lump them together. This is because Baton Rouge is decreasing in population while East Baton Rouge Parish is increasing.
We’ll discuss some of Baton Rouge’s predicted 2023 real estate trends in this article. For the sake of clarity, we’ll be classifying it as one big market.
Seller’s Market
Baton Rouge is currently in a seller’s market, which means that the price of property is increasing each year. This is great news if you’re planning on owning the property in question for a year or more, but that doesn’t mean the risk is gone.
You take on a risk anytime you make an investment. While flipping a rehab house or investing in a rental unit seems like a good idea right now, there’s always a chance that things can change, and change quickly.
If you’re planning on selling a property, this is a great time to do it. Keep in mind that the seller typically has to pay the real estate agents in most cases. So keep that in mind as you calculate your profit.
Runaway Inflation
One of the more troubling real-estate predictions is that rapid inflation will soon cause the real estate bubble to pop and properties to plummet in value. Most experts claim that this is a few years away.
There are a lot of potential reasons for this rapid rise in inflation, but most of it seems to trace back to the pandemic in one way or another. Some blame the direct results of the Pandemic, while others claim that the responses of business owners to the pandemic played the biggest role.
The emptying of stores by people preparing for a long lockdown and supply chain issues has created increased prices in many sectors including grocery, retail, building supplies, and more. This is a fairly standard response in business that follows supply-and-demand principles. The problem is that the pandemic was unpredictable, unlike labor strikes or new product launches where you can realistically assume things will normalize again within the next few months or so.
What to Know as a Realtor in Baton Rouge
Being a realtor in Baton Rouge is still a good profession, but there’s no guarantee it will stay that way. As prices climb ever higher, it’s only a matter of time before demand outstrips supply and buyers can’t afford the homes that are available and values plummet.
The real estate market is susceptible to change. If you want to strike while the iron is hot, look around our site. Please contact me if you’re in need of a realtor.
