What. A. Year. For all of us. Things were especially nuts in the real estate world here in Tippecanoe County, so I thought I’d do a quick recap of the end of the year and then dive into what to expect in 2021.
Q4 Market Update
First, let’s look at a little Q4 wrap-up of the local market. There was a lot happening, to say the least.
Number of Homes Sold
During the fourth quarter of 2020, there were 622 homes sold in Tippecanoe County. This is a slight dip from the 751 homes that were sold during the third quarter of 2020.
Home Prices
Forty-six of those homes surpassed the $400,000 mark. The average sales price of these homes was $228,563. The average price per square foot was $125.24.
This is up from the average sales price of $224,000 during the third quarter of 2020. I’m telling you—home prices are not going down, even during what is typically a slower fall and winter selling season.
Days on Market
Homes continue to fly off the market at a breathtaking pace. The average days on the market was 19 during this past quarter, up just one day from 18 during the third quarter of the year. If you find a home you want, you have to snatch it up immediately because chances are, it won’t be there later.
My 2020 in Real Estate
As you might guess, it was a busy year for me personally, as well. It was also a really great year! Here are some fun stats from my buying and selling activities in 2020.
Selling Stats
- I sold 26 listings.
- The sold prices ranged from $95,000 to $725,000.
- 11 of those homes sold at or above the listing price!
- My average days on market was 28.
- The oldest home was built in 1890, the newest in 2016.
- The most offers I got on a home I had listed was 13! Wow!
Buying Stats
- I also helped 26 buyers purchase new homes.
- The homes ranged from $125,000 to $849,500.
- I sold 3 homes on one street (1121, 1130, and 1201 Kingswood)
- I helped 5 buyers purchase homes from my sellers.
What are Your Real Estate Goals in 2021?
So, that leads me to this question—what are your real estate goals in 2021? Even if you’re not quite sure if you want to buy or sell, now is the time to begin thinking and planning.
In fact, I always say that January 1st is the start of the spring selling season here in Greater Lafayette. I wrote an offer on a $650,000 house on January 1, in fact. In every way, our local real estate market is busy. And our spring is going to continue to be nuts. Here’s why.
1. Mortgage Rates are Historically Low
I’m not just saying it—mortgage rates really are at unprecedented lows. Mortgage rates hit an all-time low 16, yes 16, times during 2020, and these low rates have helped buyers have more purchasing power when it comes to buying the homes they want. Over the lifetime of a loan, your home could potentially cost tens of thousands of dollars less.
Mortgage rates are expected to remain relatively low throughout this year as the economy continues to recover from the effects of the pandemic. But even a small increase can make a large difference in your payments over the life of the loan. So, I recommend capitalizing on the current lending environment now before rates begin to rise again.
2. Inventory is Going to Stay Low
I know I sound like a broken record, but inventory is incredibly low in all of Tippecanoe County. With competition so high, homes are selling fast. Combine low inventory with some incredible gains in home equity, and sellers are definitely the ones in control.
For example, according to IAR, the median sales price in Indiana was up 13.8% in September of 2020 compared to September of 2019. But inventory was also down 57% compared to just a year ago. So, if your home was worth $200,000 a year ago, it could be worth $27,600 more today! If you’re thinking about selling, that’s more money in YOUR pocket.
Plus, selling your house now, before more listings come onto the market in the spring, may give your home a chance to shine. With less competition all around, it’s a great time to put your home on the market.
If you’re considering buying or selling a home in 2021, give me a call now. I’ll help you start thinking about the possibilities in the coming year, and with a market like this one, more time to prepare is NEVER a bad thing. I’m here to help you with this crazy market. Just give me a call at (765) 427-7000 or email me at stacy@russellteam.com.
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