Baton Rouge’s million dollar real estate market has been influenced by the same market forces that have influenced the real estate market overall. The difference is that the swings tend to be a little more dramatic.
In Baton Rouge, the supply of million dollar homes reached a 5 year peak in July 2019. At the time there was a 25 month supply of homes, meaning that it could have taken a minimum of two years to get your $1,000,000+ home sold! Fast forward to December 2021 and we were down to a 5 month supply. During the same time period the median $/sq. ft. of million dollars homes went from $218/sq. ft. in October 2019 to $304/sq. ft. in October 2022. And, the cost of new construction is even higher.
What changed? Just about everything. In a “pandemic” and “post pandemic” world the cost of new construction has driven up the value of most existing homes. We can see that in every price range. And, across the country, American’s appetite for bigger homes with more amenities and more space has grown. We live at home, work at home, and teach our kids from home. The availability of low interest rate mortgages during the pandemic also made these homes more affordable. So, it should come as no surprise that the “high end” of our market saw a remarkable shift.
What can you expect to find in these homes? That hasn’t changed. You’ll find quality construction, meticulous attention to detail, and professionally designed interiors. And as beautiful as the interiors are, the front elevations and outdoor spaces are what really impresses me. Just take a look at some of these porches, patios, outdoor kitchens, pools, and landscaping. Whether it’s contemporary or traditional, these homes are impressive inside and out.
These days what I’m asked most often is, “What’s going to happen now that the interest rates are rising?” The supply of million dollar homes has risen from a 5 month supply in December 2021 to an 8 month supply in October 2022. What’s most interesting to me is that the median $/sq. ft. just keeps rising. A sign of the inflationary pressure we all feel? Most likely, “Yes.” And, the Federal Reserve Board is telling us is that they will keep raising the interest rates until inflation levels off at 2%/year.
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Homes for Sale/Recently Sold