Baton Rouge housing market was hot this summer, but will it cool down? – Greater Baton Rouge Business Report

December 17, 2021 by No Comments

It’s widely agreed that low interest rates largely drove the hot market at the beginning of summer.

Rates were lowered at the beginning of the pandemic and more people bought houses because they could afford them, says local real estate appraiser Margaret Musso. This, in turn, caused inventory to fall.

As a result of less inventory, every time a home was put on the market it was listed a little higher than the one before, Musso says. In many cases, buyers got into bidding wars, which has continued.

While demand for all levels of homes, from starters to the million-dollar variety, is strong, Tom Cook, real estate appraiser at Cook, Moore, Davenport and Associates, says it can’t continue.  

So when rates and prices rise and the market eventually slows, will local builders still be as busy, and will the labor and supply shortage still be as big of a deal? 

Read the full story from the latest edition of Business Report. Send comments to [email protected]

Source: https://www.businessreport.com/newsletters/baton-rouge-housing-market-was-hot-this-summer-but-will-it-cool-down

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