I’m here to break down Greater Lafayette’s housing market during the first quarter of 2022. There’s a lot happening, so let’s dive in.
Inventory and Number of Homes Sold
The local housing market has gotten off to a sluggish start in terms of inventory. This is the busiest time of year for listings, but we’re still struggling to get enough inventory (that’s an understatement). When new listings hit, buyers are on the sidelines and are ready to POUNCE.
Of the 505 properties that were listed in the first quarter of 2022 in Tippecanoe County, just 86 remain for sale on the MLS. 192 are pending, 213 have sold, and 12 were canceled or withdrawn from the market.
A total of 394 homes were sold during the quarter.
There may be some relief on the horizon. Overall, inventory has grown some throughout the county during each of the last two months, and since inventory usually grows in the spring, the next quarter could bring more listings to the market.
If you’re a seller, listing now instead of waiting for more competition makes sense. Your leverage to negotiate declines as additional homes enter the market to compete with yours.
Average Days on Market
The average days on the market was just 18 during the first quarter of the year. Like I said, houses are not lasting long, and many are gone within the first day of listing. If you’re interested in a home, there’s no time to sit and think about whether you want to make an offer.
Median Sales Price and Interest Rates
The median sales price sitting at $231,000 for the quarter in Tippecanoe County (down a bit from the median sales price in 2021). But buyer demand remains strong, and that means prices will continue to rise. The level of appreciation will likely be at a more moderate pace going forward, however.
The biggest thing that had an impact on the prices buyers are paying for homes is actually interest rates. They’ve gone higher more quickly than anticipated, and buyers are being priced out by interest rate alone. Even small fluctuations in interest rates can have a huge impact on what a buyer can afford.
The truth is that rates are likely to continue to rise, so if you’re thinking of buying, now is a good time to do it. The increase in rates will not cause a dramatic fall in home prices, according to the experts.
That’s a wrap! If there’s anything I can help do to help you reach your real estate goals this spring, just reach out.
*Stats per the IRMLS, 1/1/2022 to 3/31/2022.
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