As we step into October, I’m excited to share a detailed update on the real estate market in Tippecanoe County, reflecting on the trends and data from September 2024. This comprehensive analysis will help you understand the current landscape and what it might mean for your real estate goals.

Inventory Trends

Average Daily Inventory
In September, the average daily inventory across all property types, including single-family homes and condos, rose to 201, marking an 11% increase month-over-month and a 38% increase year-over-year. This upward trend is a positive sign for buyers, indicating more options are available in the market. However, we are still about a third off from the ideal balanced market figure of around 300 homes.The increase in inventory can be partially attributed to the Federal Reserve’s decision to cut interest rates on September 18th, which likely encouraged more sellers to enter the market. A balanced market typically features an inventory level that supports a healthy competition between buyers and sellers.

New Listings

Stability in New Listings
Interestingly, new listings in September remained relatively flat at 166, which is only a 1% increase from August but shows a 7% decrease year-over-year. This stability suggests that while more homes are available, the rate at which new properties are being listed is not keeping pace with the rising inventory. For buyers, this means homes are staying on the market longer, providing more time to consider their options.

Closed Sales

Decline in Closed Sales
September saw a significant drop in closed sales, with only 107 transactions, representing a 28% decrease month-over-month. This decline is notable compared to 149 closed sales in August and 138 in September 2023. The anticipation surrounding the Fed’s rate cut may have caused potential buyers to hold off on making offers until they had clarity on interest rates.

Pending Contracts

Flat Pending Contracts
The number of new pending contracts was nearly unchanged from August to September, with 139 pending contracts, reflecting a modest 1% increase but down 5% year-over-year. This stability indicates that while fewer homes are closing, buyer interest remains consistent.

Days on Market

Increase in Median Days on Market
A key metric to watch is the median days on market, which rose sharply to 11 days, an 83% increase month-over-month and a staggering 69% increase year-over-year. This shift indicates that homes are taking longer to sell than they did earlier this year when the average was around four days. The increased time on market allows buyers more opportunity to evaluate their options carefully—a positive sign for those looking for their perfect home.

Months of Inventory

Approaching Balanced Market Levels
The months of inventory metric has also improved significantly, now standing at 1.9 months, which is a 55% increase from August and up 77% year-over-year. While this figure is still below the ideal range of four to six months for a balanced market, it reflects progress toward normalizing conditions.

Sale Prices

Appreciation Continues
The median sale price for September was reported at $305,000, showing a slight 1% increase month-over-month and an impressive 22% increase year-over-year. This appreciation underscores the resilience of home values in our area despite fluctuations in sales activity.

Sale Price vs. Listing Price

Homes are currently selling for an average of 97.7% of their listing price, indicating that sellers are still achieving close to their asking prices. This figure has decreased slightly from previous months but remains strong overall.

Conclusion: What Does This Mean for You?

As we move deeper into fall, these trends present both opportunities and challenges for buyers and sellers alike:

• For buyers: Increased inventory and longer days on market offer more choices and time to make informed decisions.
• For sellers: While appreciation continues, understanding pricing strategies will be crucial as competition increases.

If you have any questions about how these trends affect your specific situation or if you’re considering buying or selling a home, please don’t hesitate to reach out. I’m here to provide personalized guidance tailored to your needs.Thank you for trusting me with your real estate journey!