January 2026 Baton Rouge Housing Market Trends for Buyers and Sellers

By Darren James

Darren James is a highly accomplished real estate professional and the founder of one of Baton Rouge’s premier real estate firms. With over 20 years of experience in selling and marketing real estate.

The Baton Rouge real estate market has been through some ups and downs lately, and many are wondering where it stands right now. If you’re thinking about buying or selling, it’s important to understand what’s happening in the market and what you can do to make the best decisions.

Let’s dive into the key trends shaping the market today and how you can make them work for you.

Market trend and current update. The real estate market is currently thriving, and there’s a lot of activity. One of the big factors influencing the market is interest rates. A few years ago, interest rates dropped to incredibly low levels, around 2% to 3%, which made it easier for people to buy homes.

As a result, inventory was at an all-time low, and homes were selling quickly with multiple offers. However, interest rates then rose to 8%, which slowed things for a while as many people waited to see if rates would drop again.

But in late 2024 and into 2025, interest rates began to drop again, and demand for homes surged. This created what’s called “pent-up demand,” meaning many buyers who had been holding off on buying now wanted to take action. These changes, combined with fewer homes available for sale, have led to a red-hot real estate market with rising demand.

How rate changes are affecting buyers and sellers. Interest rates play a big role in shaping the real estate market. When rates go down, it’s easier for buyers to afford homes, and more people are interested in buying. But when rates go up, fewer people can buy, which slows things down. We’ve recently seen these ups and downs in interest rates, and they’ve affected how people are buying and selling homes.

Right now, with rates stabilizing after a few drops, buyers are jumping back in. Sellers, on the other hand, are seeing more interested buyers and sometimes receiving multiple offers, which gives them a strong advantage in today’s market.

The power of pent-up demand and low inventory. The market is currently strong due to pent-up demand. A recent drop in interest rates has encouraged many waiting buyers to enter a market that has limited inventory. This competitive environment allows sellers to potentially sell their homes faster and at a higher price.

The market outlook for the future. The real estate market remains strong. Although interest rates are expected to fluctuate and won’t return to previous lows, opportunities exist for both buyers and sellers due to pent-up demand, low inventory, and a recovering market. It’s an opportune time to buy or sell.

Understanding the current trends is crucial for making the right decision. Reach out to me today for personalized guidance and expert advice! Call (225) 335-7666 or email me at darren@agent225.com, and let’s make your real estate goals a reality today!