{"id":563,"date":"2022-11-05T16:00:41","date_gmt":"2022-11-05T16:00:41","guid":{"rendered":"https:\/\/stacygrove.com\/blog\/?p=563"},"modified":"2022-11-11T16:11:27","modified_gmt":"2022-11-11T16:11:27","slug":"is-the-local-housing-market-softening","status":"publish","type":"post","link":"https:\/\/stacygrove.com\/blog\/is-the-local-housing-market-softening\/","title":{"rendered":"Is the Local Housing Market Softening?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">It seems like everywhere I go lately people are asking, \u201cSo, is the market softening?\u201d Honestly, it\u2019s the number one question I\u2019m getting right now. My answer is, well, that depends.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Full disclosure, I\u2019m not an economist or mathematician, but I do have access to some interesting data, so let\u2019s dive in!<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Is the Local Real Estate Market Softening?\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/ifuUmeW27ns?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Many people are talking about the fact that they\u2019re seeing listings sit on the market longer than they\u2019ve seen listings sit lately. However, in Tippecanoe County, we have LESS inventory than we did one year ago. That\u2019s right\u2014we had 190 active listings on November 1 of 2021 versus 186 active listings as of October 31 of 2022.* So, that means an influx of inventory that is just going to sit is not a huge concern right now, and if you\u2019re selling your home, there isn\u2019t going to be massive competition for it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But let\u2019s talk about some other numbers. As of October 31 of 2022, 20 homes went under contract, 32 homes were listed, and 26 homes were sold in the week preceding that date. Those numbers are substantially lower than they were during that same period in 2021 (by around 50% or a little more in the case of homes that went under contract).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, what gives here? Well, it\u2019s all about interest rates. At this time last year, rates were 3.56%, and now they\u2019re around 7.22%. Interest rates have more than doubled during this year alone, and that has a huge effect on monthly mortgage payments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, if you\u2019d purchased a $300,000 home in January, current interest rates mean you\u2019d now pay about $710 more per month for the <em>exact same home<\/em>. When you consider that utilities, gas, groceries, and just about all the other daily necessities are costing more as well, there\u2019s not a lot of room for a bigger mortgage payment in many budgets. In other words, our buyer pool has shrunk because fewer people can afford homes right now. Nationally, the median mortgage payment is about 77% <em>higher<\/em> than it was a year ago, and most of that increase is from interest rates. For payments to return to where they were a year ago, home prices would have to drop significantly (<a href=\"mailto:https:\/\/www.realtor.com\/news\/trends\/home-prices-would-need-to-fall-this-much-for-buyers-to-get-a-break\/\">around 45%<\/a>), which nobody is predicting even with an economic downturn.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you <em>are<\/em> looking to buy, it\u2019s a good time to be a homebuyer because although it\u2019s still very much a seller\u2019s market and supply is still lower than normal levels, there will likely be an eventual increase in inventory. Also, those crazy bidding wars are lessening. The average number of offers on recently sold homes is declining, according to the National Association of Realtors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019re buying or selling in Greater Lafayette, Indiana, I\u2019d love to be your <a href=\"https:\/\/www.youtube.com\/hashtag\/indianarealtor\">#IndianaRealtor<\/a>! Give me a call today at 765-427-7000.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">*Per the IRMLS 10\/25\/21 to 11\/1\/21 and 10\/24\/22 to 10\/31\/22.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It seems like everywhere I go lately people are asking, \u201cSo, is the market softening?\u201d Honestly, it\u2019s the number one question I\u2019m getting right now. My answer is, well, that depends. Full disclosure, I\u2019m not an economist or mathematician, but I do have access to some interesting data, so let\u2019s dive in! Many people are [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":564,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10],"tags":[],"class_list":["post-563","post","type-post","status-publish","format-standard","has-post-thumbnail","category-listings","entry"],"jetpack_featured_media_url":"https:\/\/stacygrove.com\/blog\/wp-content\/uploads\/2022\/11\/Screen-Shot-2022-11-11-at-11.06.23-AM.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/stacygrove.com\/blog\/wp-json\/wp\/v2\/posts\/563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stacygrove.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stacygrove.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stacygrove.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stacygrove.com\/blog\/wp-json\/wp\/v2\/comments?post=563"}],"version-history":[{"count":4,"href":"https:\/\/stacygrove.com\/blog\/wp-json\/wp\/v2\/posts\/563\/revisions"}],"predecessor-version":[{"id":568,"href":"https:\/\/stacygrove.com\/blog\/wp-json\/wp\/v2\/posts\/563\/revisions\/568"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stacygrove.com\/blog\/wp-json\/wp\/v2\/media\/564"}],"wp:attachment":[{"href":"https:\/\/stacygrove.com\/blog\/wp-json\/wp\/v2\/media?parent=563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stacygrove.com\/blog\/wp-json\/wp\/v2\/categories?post=563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stacygrove.com\/blog\/wp-json\/wp\/v2\/tags?post=563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}