Information you need to know about West Lafayette’s real estate market.
Back-to-back appointments, continuous sales, bidding wars, and dramatic home price increases have marked our weekly schedules over the past two years. With all-time low rates being offered during the height of the pandemic, the housing market has been nothing less than feverish. We are, however, starting to see a small shift happening in the market with the rise in interest rates. Should you be worried? We don’t think so, and today we’ll explain why.
First things first, it is not unusual to see a shift. In fact, it happens all the time in real estate markets whenever significant circumstances change, such as interest rates, demand, supply, or the general economy.
Second, it is important to look at the market from a local lens. While a national perspective gives guidance, local markets can be a bit different at times. For this reason, reaching out to local real estate experts is crucial.
In Indiana, year-to-date sales are down by nearly 4% compared to 2021, but are still outpacing growth trends from before the pandemic. Inventory has gradually increased, with year-to-date available homes reaching 2% above 2021, which gives buyers more options. However, overall lack of supply continues to lead to home price increases, albeit at a slower pace. In fact, price gains slowed down for the fifth consecutive month this year, stirring more positive news for determined buyers.
“There are opportunities for buyers and sellers in this market.“
This is a signal that prices are growing at a more sustainable pace. Despite this, prices from January through July 2022 are still trending on average 14% more than last year’s figures—a sign that amid the decelerating rise in prices, housing is still a valuable wealth-building investment.
In addition, we are entering a more balanced market. Surging demand and low supply have played major roles in the past two years, opening up incredible advantages for sellers. However, as more homes are listed this year, and the demand is pressed downward due to inflation and rising mortgage rates, the housing market is leaning toward a balance.
What does this mean for sellers? The market transition may entail fewer offers and bidding wars. While sellers have gotten used to getting more than the asking price, you now need to be quick to adjust and price strategically. Sellers will continue to benefit from rising prices, but their homes may sit on the market a little longer. This is why partnering with a Realtor who will offer top-notch marketing strategies is a critical step.
Then what does this shift mean for buyers? We’ve seen rate increases, but rates are still historically low. With housing inventory climbing up, homebuyers who have waited on the sidelines in the past due to limited inventory are now seeing greater chances to seize homes at potentially more affordable prices and with less competition.
The bottom line is that despite the shift, home sales in Indiana remain strong. There are attractive opportunities and deals to be maximized, you just need to find an agent who will step up their game for you. If you have questions about this topic or anything else, please call or email us. We are always willing to help!