Q3 2025 Northwest Louisiana Housing Market Update: What Buyers and Sellers Need to Know

The housing market in 2025 is starting to show signs of stabilization across the U.S., including here in Northwest Louisiana, with new home construction and rental projects returning to more balanced levels. While inventory is improving and home listings are on the rise, challenges like mortgage interest rates and economic uncertainty are still shaping the local real estate landscape.

🏡 New Construction Inventory Is Growing—but Demand Still Outpaces Supply

According to JPMorgan, there are currently over 481,000 new homes for sale nationwide, the highest since 2007. About 385,000 of these are speculative homes—those built without a buyer already in place—making up one of the most significant supply surges in over a decade. Still, inventory remains low by historical standards, especially in sought-after markets like Shreveport, Bossier City, and surrounding parishes.

Despite increased inventory, the demand for single-family homes in Northwest Louisiana continues to exceed supply, especially in popular school districts, near Barksdale AFB, and other high-demand areas.

💸 Why Are Homes Still So Expensive?

Several key factors are keeping homes out of reach for many buyers:

• Mortgage interest rates remain elevated.

• Sellers are hesitant to give up their low-rate mortgages.

• Builders are slowing multi-family housing starts due to declining rents.

Even as the number of homes for sale increases, higher borrowing costs are reducing affordability for first-time buyers and move-up buyers alike.

📉 Understanding Mortgage Rates in 2025

As of this writing, the average 30-year fixed-rate mortgage is 6.65%, slightly lower than last year. But these rates typically reflect ideal buyer conditions: strong credit, 20% down payments, and conventional loan qualifications.

Freddie Mac and Fannie Mae, the government-sponsored enterprises that buy and guarantee mortgage loans, base their lending standards on economic performance. If default rates rise, credit requirements could tighten further—impacting how easily buyers in Northwest Louisiana can secure financing.

Historically, mortgage rates have averaged around 7.33%, so while current rates may feel high compared to recent years, they're still below the long-term norm. The challenge is that these rates are paired with high home prices and limited inventory, particularly in desirable neighborhoods around Benton, Haughton, and South Bossier.

🏘️ Listings and Prices in Northwest Louisiana

According to Realtor.com, active home listings are up 29.2% year-over-year, marking 72 straight weeks of gains. This means buyers now have more options, especially in price ranges between $200,000 and $350,000, which are most competitive in our local market.

Despite the increase in listings, prices have remained resilient. The average price per square foot has increased 1.3% nationally, but locally, we’re seeing more price reductions than in previous years. Sellers are slowly adjusting expectations to meet market realities, leading to more realistic asking prices across the region.

📆 When’s the Best Time to Buy a Home in 2025?

Industry experts predict that the best buying opportunities could arrive in Q3 2025, when:

• Inventory levels are expected to peak

• Home prices may dip further

• Interest rates could decline slightly

• Days on market are extending, giving buyers more leverage

If you’ve been waiting for a better time to buy in Shreveport, Bossier City, or nearby communities like Stonewall or Blanchard, late summer into early fall could offer a strong window of opportunity.

🧠 What Buyers and Sellers Should Do Now

For homebuyers in Northwest Louisiana:

• Get pre-approved with a local lender to lock in the best possible rate.

• Work with a REALTOR® who knows how to negotiate in this market.

• Be prepared for competition in turnkey homes priced below $300K.

For homeowners thinking of selling:

• Consider listing sooner rather than later to take advantage of current home values.

• Understand that strategic pricing and staging are more important than ever.

• Partner with a local real estate expert who can generate a comparative market analysis (CMA) specific to your neighborhood.

🔍 Final Thoughts

The Northwest Louisiana real estate market is shifting—but it’s not slowing. With mortgage rates still elevated, buyers must be strategic, and sellers must be flexible. As we move through 2025, opportunities are emerging for both sides of the transaction.

To stay updated on market trends, interest rates, and new listings in Shreveport-Bossier and surrounding areas, subscribe to our blog or reach out to a Berkshire Hathaway HomeServices Ally Real Estate professional today.