Summer 2023 Tippecanoe County Market Update

So, how’s the market? This is a question I hear regularly. My answer: Until people stop getting married, getting divorced, having babies, and dying, we have homes to sell. The market is different than it was a year ago and five years ago and ten years ago, but that’s basic economics. We’re busy! Let’s dial things in a bit . . .

The Stats

Let’s look at Tippecanoe County housing market stats from January 1, 2023, to July 31, 2023. Here are the important ones:

Total closed sales: 1,050 homes

Average days on market: 19 days (This number was 44 days in 2019, 39 days in 2020, and 30 days in 2021 and 2022)

Average sales price: $305,711 (This number was $283k in 2019, $322k in 2020, $324k in 2021, and $380k in 2022)

Average sale price to list price ratio: 100% (almost to the dollar!)

Lowest sale price: $55k, which was a condo in West Lafayette (near Purdue) that needed extensive water remediation

Highest sale price: $1,350,000, which was a home with 8,750 total finished square footage on 1.13 acres in West Lafayette

Active inventory: 154 residential dwellings (This number was 256 in 2019, 171 in 2020, and 123 in 2021 and 2022)

Major Factors Influencing the Housing Market

Interest rates: While they’re higher than most buyers (and current Realtors) are used to, they’re not astronomically high. You can read more about that here.

Lack of inventory: This is one of the biggest issues in Tippecanoe County—mostly due to the vast variety of types of housing needs we have: student, executive, low income, transitional, and temporary. This is wild, considering that only about 104,000 people work in Tippecanoe County.

House conditions: In general, homes in Tippecanoe County cost more than surrounding counties, and we have relatively lower vacancy rates. The level of new construction is still behind what it needs to support local industry expansions. Lot and housing prices may not be attainable for many households.  

What’s Ahead

Obligatory statement about how I don’t have a crystal ball . . . yada, yada, yada. BUT.

Interest rates may not factor into this as much as some fear. 89% of mortgages have rates of 5% or less. That’s insane.

Equity has a HUGE role. With 87 million homeowners in the U.S. . . .

• 39% own outright (34 million)
• 31% with 50% or more equity (27 million)
• 30% (26 million) with less than 50% equity
• 70% of homeowners have at least 50% equity in their homes

New construction needs to ramp up: According to READI Region Housing Study, Tippecanoe County will need about 11,000 units in the next seven years.

More people are coming: Major industry and high-wage jobs are near, and we have a wide range of services and amenities for local residents. We also have 50,000 students and a Big Ten university in our backyard.

I wish I could tell you exactly what’s ahead for the housing market, but I know one thing for sure—things are going to keep on changing.

*Data Sources: NAR, Corelogic, READI Region Housing Study, KW Realty International