SWLA’s 2025 Real Estate Outlook

by Kerri Cooke

Is now a good time to buy a home?

There are many factors to consider, but you don’t have to peer into a Magic 8 Ball to make that decision. Pamela Bell and Phyllis Godfrey, aka The Property Sisters, Realtors with Latter & Blum/Compass, say “the ideal time to buy will depend on the local market and your personal financial situation, so it’s important to consult with a Realtor to help determine the best time to buy,” but they note “buyers are becoming more confident in the economy and sellers are deciding now may be the time to sell their homes.”

While it was recently reported that Lake Charles is expected to have the weakest housing market in the country this year, The Property Sisters say that statement is not a good determinant of the state of things. “The housing market is complex and varies greatly based on multiple factors. We need to look at supply and demand, interest rates and regional economic conditions. Looking at data from trusted sources, such as local real estate experts, will help give a full picture of what’s happening in your community.” Despite potential concerns from consumers, “the sale of homes has remained pretty steady over the last few years.”

It’s no secret that the real estate market in SWLA has undergone an extensive transformation over the last five years with availability and affordability being the top concerns. Pre-Hurricanes Laura and Delta, SWLA was booming with plenty of housing for locals and out-of-town workers. After the hurricanes, there wasn’t even enough housing for locals. The Property Sisters say, “The market is stabilizing. However, there are still challenges with inventory shortages of desirable properties and difficulties in the pace of full recovery in some price ranges.” New developments are continuing to be built in SWLA, which will lead to more supply and choice for buyers and potentially a small decrease in pricing in some areas.

Another concern among home hunters has been rising inflation costs and interest rate increases. Now that the Federal Reserve is beginning to cut rates, the effect on the real estate market is yet to be determined. “The impact of interest rate cuts on home prices isn’t always predictable,” The Property Sisters say. “Although interest rate cuts could boost home sales, it is likely to be tempered by affordability and supply and demand. Waiting for interest rates to drop could end up costing the buyer more in the long run. When interest rates drop, more interested buyers flood the market, which could cause an increase in the price of homes.”

Real estate prices largely hinge on the size, design and location of a home, so if you’re a property owner, you needn’t be concerned about major shifts in value. “Real estate is all about location, and much of our area continues to show promising potential for property value growth,” The Property Sisters say. If you’re considering selling your home, make sure to complete repairs, plan potential improvements and price accordingly.