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The Emerging Market Trends You Need To Know

A critical February market update to guide you with your real estate plans.

The numbers are out for this month! What market trends emerged at the start of the new year? In the first few months of 2023, there have been significant changes that could impact buyers, sellers, and agents.

The latest market stats show that there has been a significant decrease in the number of active houses on the market to purchase. Specifically, in February 2023, the number of active houses decreased by 20% in Tippecanoe County, from 135 last year to 108 this year. While an decrease in supply would typically result in an upward increase on price, it’s essential to also understand the demand picture and how mortgage rates tie into that.  It’s important to note that homes are staying on the market a bit longer.  Inventory of homes for sale went from 85 last February to 101 this year, which is an increase of 18.8% more homes on the market at the same time.

In terms of demand, the market has seen a 11.6% decline in the number of houses sold in February 2023 compared to last year. The decline in demand, although a decrease in supply, could lead to a softening of prices and more favorable terms for buyers.  The average percent of original list price received decreased by 2.0% going from 99.5% last February down to 97.5% this February, 2023.

“There has been a significant increase in the number of active houses on the market.”

While these trends are noteworthy, it’s crucial to remember that these are just February numbers. As such, it’s difficult to predict long-term trends from these data. The interest rates have stabilized, and there’s more activity, and we’re keen to see what the February numbers look like.

It’s also important to note that the median price of homes is up 13%, from $220,000 to $248,500. Another important factor to watch is the average days on market. In February 2022, homes were sold on average within 19 days. This year, the average days on market has increased to 29 days. This increase is not that significant, but it’s worth noting that between 2018 to 2020, the average days on market was 27. That market was anomalous, and now things are starting to normalize, which is excellent news for everyone.

If you have any questions about February’s market stats or need help with your buying and selling plans, call or email me. I’d love to share with you my insider real estate knowledge.

*per Indiana Realtors Housing Data February 2022-2023 and IRMLS, residential Tippecanoe County

For up-to-date information on YOUR Indiana area neighborhood or a FREE Seller Consultation – call The Romanski Group at (765) 293.9300.  Using an experienced team is the way to get your home ‪SOLD‬! You deserve the BEST Real Estate Team in the Lafayette Indiana area!

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