What Can Home Buyers and Sellers Expect in 2019?
Louisiana Realtors • January 30, 2019
As quickly as 2018 ended, 2019 has arrived. And as with each new year, especially in the world of residential real estate, a lot more than just the calendar is expected to change. These expectations can mean a lot if you are planning to buy or sell a home in the coming months. So, just like you’d check the weather before making outdoor plans on the weekend, let’s look at a few things that are being forecast for the year ahead.
Mortgage Rates Will be on the Rise
While mortgage rates are still below the levels they reached during the recession, they will continue the steady climb we’ve seen over the past two years. However, rates will remain below average in spite of the strong economic environment we’re experiencing. By the end of 2019, 30-year fixed rate mortgages are expected to 5.8%
In Spite of Rising Rates, Home Sales to Millennials Will Increase
Even with mortgage rates on the rise, demand from Millennials will continue to increase. This surge will add to the growth of first-time homebuyers. 45% of home purchases are expected to be from Millennials, compared to 37% from Gen Xers, and 17% from Baby Boomers.
Inventory Will Improve
Compared to 2018 the increased demand from first-time buyers will be met by a slightly higher inventory level in 2019. The number of homes being put on the market and newly constructed homes increasing, combined with a slower pace of sales will improve inventory for home buyers.
Home Price Growth Will Slow
Another benefit for home buyers in 2019 will be a slow down in home price appreciation. This is a result of increasing inventory. Recent years have seen anywhere from a 5-10% increase in home prices. With buyers having more options, coupled with higher interest rates, price growth is expected to drop from 1-3%.
Louisiana’s 2026 Regular Session opened this week with several developments that matter directly to REALTORS ®, property managers and housing providers, alongside some broader political shifts worth watching. HB 292: Security Deposit Return Timelines Rep. Delisha Boyd’s HB 292, which addresses procedures for returning residential security deposits, was heard in committee but deferred to next week. This provides additional time for stakeholders to engage with members on practical impacts for lease administration, move out inspections and documentation standards. We’ll continue working to ensure any changes to deposit law are clear, workable and do not expose housing providers to unreasonable liability. Land Use and Development: St. James Parish Decision The Louisiana Supreme Court’s recent St. James Parish decision significantly tightens the standards for overturning local land use decisions, reinforcing that zoning and permitting authority rests with parish and municipal governments as long as their decisions are not arbitrary or capricious. For real estate and development, that means more predictability if projects are aligned with adopted plans and ordinances, but also higher stakes in local elections, planning processes and parish-level negotiations. Governor’s State of the State In his State of the State address, Governor Jeff Landry reiterated his push to phase out the state income tax, expand the LA GATOR and MJ Foster scholarship and workforce programs, and replace vehicle inspection stickers with a QR code system. While some of these proposals are controversial, they frame a debate around long-term competitiveness, workforce readiness and household cost of living which are all key drivers of housing demand and migration patterns. Business & Market Trends The business community is focusing the session on insurance, workforce and energy. Commercial and property insurance costs remain a top concern for employers and property owners, and we are monitoring civil justice and insurance reform proposals that could affect market stability and availability. At the same time, Louisiana is seeing more than $100 billion in announced industrial and data center projects, which could reshape local markets, labor conditions and housing needs in multiple regions of the state. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
Learn how Louisiana real estate regulations, disclosure laws, and licensing standards help protect homebuyers and create safer, more transparent transactions.
Nominations are open now through April 24, 2026, for the Louisiana REALTORS® 2025 REALTOR® of the Year & the 2025 Lawrence R. DeMarcay, Jr. Distinguished Service Award. Both awards are aimed to showcase an individual who has volunteered their time in service to the real estate industry. Recipients of the awards will be recognized during the Spring Legislative Conference. (Registration coming soon!) Please see the below links with the selection criteria and consider submitting a nomination today. Contact Donna Teekel at (225) 224-0704 or dteekel@larealtors.org with any questions.
