You know, I can sum up Greater Lafayette’s first quarter of 2021 housing market in one word: BANANAS. After 17 years of selling residential real estate throughout Indiana, I have never, ever seen a housing market like this one. If you think I’m exaggerating, here are some thoughts to back that observation up.
2004: 120 days was the average amount of time a home was on the market
2008: Short sales galore due to the imploding economy and housing market crisis
2010: The government incentivized interest rates with tax credits to keep buyers engaged in the market
2015: Offers were for around 90 to 92% of list price (and that was not considered out of the norm, by the way)
2021: Low interest rates, low inventory, multiple offers, homes selling over asking on the regular
Q1 Stat Lowdown
Now, let’s go over some stats from the first quarter of this year. We’ve sold 408 homes in Tippecanoe County, and 156 sold for over asking price. They’ve ranged from $34,000 to $1.2 million, and the average sold price is $234,126.
The average days a home was on the market was 24, but 61 of the homes have had ZERO days on the market. 240 homes sold after a week or less on the market.
We currently have 97 homes on the market in the county. Yes, 97 is everything you have to choose from.
How to Buy in This Market
So, here we are. If you want to find a home to buy in this market, what can you actually do to be successful? There are a few things that really help, and it’s definitely smart to plan ahead.
Find a Local Agent
Now more than ever, it’s critical to find, interview, and hire the right local real estate agent. In this market, you need an expert. You need someone who rubs shoulders with people who might be on their fence about selling their homes. Without the inside scoop on potential inventory, you’re fighting an uphill battle.
If you wait to see what comes on the market, I hate to break it to you, but you will miss out. Homes are selling instantly, for over asking, and without an expert on your side, there’s not much you can do to have a shot at a home.
Think Strategically About Price
Another key piece is thinking strategically about price. View the list price as the floor rather than the ceiling. We used to offer under list price and work our way up. Those days are long gone. You will have to offer at and, more often above, list price to even be considered. Keep that in mind when you’re going over your budget.
Get Financing in Place Before Shopping
The other key thing is to get pre-approved (not pre-qualified) before you start home shopping. Have a lender look at your finances and what you can qualify for (especially with the wrench COVID has thrown into many people’s work situations).
It’s really helpful to submit a strong offer with a robust pre-approval behind it. If you need help finding a trusted lender, get in touch with me! I can help.
Think About Contingencies
Contingencies in your purchase contract that favor the seller can help yours be the winning offer. This may include things like putting extra cash down (over appraised value), waiving the inspection contingency, or offering to rent the home back to the sellers.
Does this make your head spin? Mine too! Agents across our area are working tirelessly to help prepare and list as many homes as possible, making them available to as many buyers as possible. This market isn’t for everyone, but if you have to buy now, don’t wear out! Get organized. Get a team. And get the house you’re looking for!
*stats per IRMLS as of 3/29/21
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