The latest data from our Greater Lafayette real estate market.
How did the 2021 real estate market wrap up, and where are we heading in 2022? Last year, the Greater Lafayette market was red-hot; it all came down to low inventory, low interest rates, and high demand from buyers. According to the Lafayette Board of Realtors, we saw home prices increase by approximately 15% since 2020.
The current median sales price is about $230,000 with a list-to-sales-price ratio of 99.85%. Some experts predict that we’re in a bubble and due for a correction; on the other hand, different experts predict that we’ll continue to see home prices skyrocket. My best sense is that we’ll see something in between. Our area has a strong economy, so many people are still looking to buy.
“Our team has dozens of pre-approved buyers ready to go.”
We also still have low inventory, which doesn’t look like it’s going to change anytime soon. Due to that, our team has dozens of pre-approved buyers ready to go and offers sellers creative options, such as an extended post-occupancy period, which allows buyers to secure the home and gives sellers time to find their next one.
Additionally, there are a couple of wild cards in the market, such as inflation, which is at a 31-year high. However, the impact of inflation depends on how the situation unfolds. Also, interest rates are gradually rising and has hit nearly 4%. The Federal Reserve has talked about increasing rates more as we move through 2022. Though, generally speaking, real estate will serve as a hedge against inflation.
So consider your situation: Is this the right time for you to buy or sell a house? If you have more questions about what I expect to see in 2022 or are thinking about buying or selling, feel free to call or email me. I would love to hear from you.