When the pandemic hit and things started shutting down this past March, no one knew exactly what was going to happen with the housing market. This was unprecedented, so it was hard for us to predict what the effects of the pandemic and the ensuing economic shutdown would be.
Well, the truth is that the pandemic didn’t shut down the housing market at all. If anything, it’s made the housing market even hotter. Who knew that was possible?
Here are some of the factors that have come into play. All stats are for Tippecanoe County for the past nine months (March 1st to November 30th)—basically since the pandemic began.
Days on Market
The average of days that a home is on the market is a good indicator of how quickly the market is moving. It can also be an indicator of how many (or how few) homes are on the market. During the past nine months, homes were on the market for an average of 20 days. During the same time period in 2019, the average was 25 days.
Average Sales Price
Homes in Tippecanoe County have gained some nice equity this year. The average sales price for a home in Tippecanoe county in 2019 was $210,236. In 2020, it’s $224,252 for the same time period.
It’s also always interesting to look at the average price per square foot, which in 2019 was $112.60 and is, not surprisingly, up to $122.24 this year.
If you’re interested in purchasing a home, now’s the time, because prices are going to continue to go up. Of course, this increased equity also means that it just might be a good time to sell.
Number of Sold Homes
So, how about number of homes sold? That was 1963 last year and is close this year, as well. There were 1909 homes sold in Tippecanoe County during the same time period this year.
My Analysis
So, what does this all mean? Well, the Tippecanoe County market is just really hot, and it’s hard to see that changing anytime soon. With so many people doing so much more at home—working, schooling, working out, eating—they’ve realized that they may need more space or just a different home than the one they have.
There are only 136 homes on the market in the entire county right now, and there are just 0.71 months’ worth of inventory. A balanced market is 6 months’ worth of inventory (more on absorption rate in this blog post I wrote here). We are very, very much in a seller’s market. If you’re thinking about selling, check out this PDF about what buyers are looking for.
A Note on Interest Rates
I wanted to leave you with a quick note on interest rates, which have hit historic lows FOURTEEN times this year. This has encouraged more buyers to enter the market, but it’s also encouraged sellers to stay put in their homes and just refinance them, which hasn’t helped inventory at all.
The uncertainty in the market because of the pandemic and the election have caused rates to vary a lot this year, but one thing’s for certain—if you’re interested in getting a home loan, it’s a great time to do it.
If I can help you find a trusted lender or help with the buying or selling process, I’m here for you. Give me a call at (765) 427-7000.
*Stats per the IRMLS; accessed on 12/8/2020.
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