People looking for homes in Baton Rouge are asking one question the most these days: "Should I rent for another year, or is it time to buy?"

So this time, I wanted to summarize the October market numbers. However, I must mention something first.

As of the time of writing this article, the Greater Baton Rouge Association of Realtors (GBRAR) has not yet released the October MLS report. Therefore, I will refer to the most recent September data for sales, while using data reflecting the October trends for rentals.

First, let's look at sales. According to the GBRAR report for East Baton Rouge Parish as of October 6, the number of completed transactions in September was 359.

This is a 4.0% decrease from 374 transactions in September of last year. New listings also dropped from 510 to 497, a decrease of 2.5%.

The number of pending contracts, which indicates future transactions, was 348, down 4.7% from 365 in September of last year. This signals that it may be difficult for transaction volumes to increase significantly in the near future.

However, prices moved in the opposite direction. The median sale price in September was $275,000, which is a 5.4% increase from $261,000 in September of last year.

So, while transactions have slightly decreased, prices have risen. The monthly figures can be skewed due to a small sample size, as noted in the association's report.

Therefore, I tend to trust the cumulative numbers from the beginning of the year more. From January to September, the median sale price was $280,000, which is 3.1% higher than $271,700 during the same period last year.

The cumulative number of transactions was 3,673, nearly the same as last year's 3,696. This suggests that the market is not cooling down but rather remaining stable.

One noteworthy point is the time it takes for homes to sell. In September, it took 81 days for properties to sell, compared to 67 days in September of last year.

This is a 20.9% increase, which surprised me at first. For buyers, this means they have more time to look around.

Sellers received 97.4% of the asking price, which is the same as last year. This indicates that while prices are not being significantly reduced, it is also not easy to sell at the asking price in this market.

At the end of September, the inventory was 1,826 homes, and the months of supply was 4.6 months. This is a slight decrease from 4.7 months last year.

Typically, a supply of around 6 months is considered a balanced market. A supply in the 4-month range still favors sellers slightly, but it is not as skewed as it was a few years ago.

Now, let's look at rentals. According to the November report from Apartment List, the overall median rent in Baton Rouge is $1,141.

This report indicates that the median rent decreased by 0.4% during October. However, compared to a year ago, it has increased by 2.8%.

When broken down by the number of bedrooms, the median for one-bedroom apartments is $942, while for two-bedroom apartments, it is $1,173. It is common to see a slight decrease in rents during the fall as the moving season comes to an end.

For reference, rental figures can vary significantly between companies. Zillow and Apartment.com may report higher figures due to differences in their survey methods, so it is advisable not to make conclusions based on just one source.

Now, returning to the initial question: which is better, renting or buying?

Looking at the numbers alone, the cumulative median sale price has risen by about 3% this year, while rents have increased by about 2% over the past year. This suggests that neither market is moving rapidly.

Ultimately, the decision hinges on interest rates and how long you plan to stay. If there is a possibility of moving to another state within three years, renting may be the more comfortable choice.

On the other hand, if you plan to stay for more than five years and have a down payment ready, this period of longer-lasting listings may actually be better for negotiating.

The 81-day figure is also a burden for sellers. There may be more room to negotiate closing cost assistance or repair requests than in the past.

If you are looking at rental income as an investment, you should be more conservative in your calculations. This is not a period where rental increases naturally lead to improved yields compared to home price increases.

Another point to mention is that parish averages do not capture the nuances of individual neighborhoods. Prices and insurance rates can vary significantly even within the same parish, depending on school districts or flood zones.

If you have a neighborhood of interest, it is advisable to check data at the zip code level along with flood maps. You can view monthly reports by parish directly in the market statistics section of the GBRAR website.

Once the October MLS report is released, I will check again to see if the trends from September continue. The key will be whether the decrease in transactions and the increase in prices persist.

In summary, if you plan to stay for a long time, I would choose to take my time this winter during the off-season to find good conditions.