You’ve seen the headlines… home prices 💲 are sky-rocketing, mortgage rates are going up⬆ , housing supply is increasing, home prices will stagnate, yadda yadda yadda. What’s true? 🤷♀️
Lets start with Real Estate Rule #1: All real estate is LOCAL.
Yeah, I’m sure you heard your Great Aunt Sally talking about what’s happening in Sheboygan while you were enjoying Christmas 🎄 dinner in Romney… but those two markets are not equitable.
Jay Thompson, Real Estate Industry Consultant, explains: Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.
A trusted, LOCAL expert is your best resource, not talking heads and clickbait headlines, which can cause fear and uncertainty! Your local area may or may not follow the national trends.
We started off the year with a bang 💥 , thanks to built-up pandemic demand and low interest rates. The market remained fiery hot 🔥 throughout the year with almost 25% of the sold homes going under contract in 24-hours or less on market.
Things got interesting this fall. According to Freddie Mac, the average 30-year mortgage rate jumped from 3.22% in January to a high of 7.08% in October. That’s an increase of nearly 4% in ten months, which is a historical mind-blower in terms of rate increase acceleration. This definitely had an affect on days on market as buyers paused to reevaluate their home buying needs, and reduced buying power.
Tippecanoe Co Sold YTD: 2166
$20k- $1.325M
Average price: $276,398
Average DOM: 15
206 ZERO DOM (about 10%)
517 sold in 24 hours or less (about 24%)
Currently active: 138
*stats per IRMLS as of 1/2/23
What do we want in 2023? Stability! Hopefully the Fed will bring inflation down and keep it there. Experts agree that if inflation is high, mortgage rates will be too. But, if inflation continues to fall, mortgage rates will likely respond. For now, we’ve got a ways to go. Some experts are predicting we’ll be back under 6% by Q3!
When it comes to home prices, Economics 101 will always play the leading role: Supply v. Demand. The more buyers and fewer homes 🏠, the more prices will rise. Exhibit: Pandemic. While some experts think home values will go up, others are anticipating they’ll go down ⬇. The truth is probably somewhere in the middle. Nationally, the experts are predicting relatively flat or neutral appreciation in 2023.
So, here’s the deal. You need a local expert… someone who can discuss local banks and lending options, as well as local housing trends. Lean on a trusted real estate adviser. If you’re buying or selling in Greater Lafayette, Indiana, I’d love to be your #IndianaRealtor! Give me a call today 765-427-7000. 💙💙💙
#housingmarket2023 #greaterlafayetteIND #westlafayette #lafayette #homeofpurdue
Brought to you by:
Stacy Grove
The Russell Company
2522 Covington St.
West Lafayette, IN 47906
765-427-7000
Search homes here: https://www.homesnap.com/Stacy-Grove
Be sure to check out my blog: https://stacygrove.com/blog/2022-greater-lafayette-housing-market-recap/
Is the Local Real Estate Market Softening?: https://youtu.be/ifuUmeW27ns
The Biggest Impact on Real Estate Right Now: https://youtu.be/wnBKC6m6i5U
Should I Sell My House Now or Wait?: https://youtu.be/Z5rgTsDGptI
Disclaimer: All information given in my videos is meant to be educational. This video is not intended to replace your own research, nor to provide legal, investment or financial advice of any kind. For legal advice consult a lawyer.
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