Greater Lafayette IN Real Estate Market Conditions $100,000 – $200,000

Low Inventory Driving Short Market Times and Higher Prices

In the $100,000 – $200,000 single family residence market, houses are selling extremely fast.  In many situations, there are multiple offers with escalation clauses resulting in sale prices above list price. What is an escalation clause, you ask? We didn’t know the answer to that until last year either. It is a one page form that says “We offer X for the house. We will pay 1,000 above any other offer up to a cap of X.”

Buyer anxiety is high.  What is causing this situation?  It is relatively straight forward.  Its all about supply and demand.

The Greater Lafayette area has had a strong growth in employment over the last couple of years.  For example, SIA hired an additional 1200 workers starting in 2015, who are potential buyers of affordable entry level houses.

Conversely, the inventory levels for houses in the $100,000 – $200,000 has gone down consistently over the last 2 years.  See graph below which shows sold houses in blue and the inventory level in green.  When the market is balanced the active inventory is 3 – 4 times what is sold each month, which was the case back in 2015.  Now fast forward to 2017.  You can see that the houses sold in the spring and early summer months were greater than the average active inventory.  This was not a balanced market and was definitely a sellers market.  Houses sold in days.  Multiple offers.  Rising prices. And some houses not appraising.

Why is the inventory going down?  Active listing inventory is driven by how many houses sell each month and how many new listings are placed on the market.  See graph below.  When the new listings in orange are greater than the sold listings in blue, inventory goes up.  When solds are great than new listings, inventory goes down.

Starting in mid-2015, sold houses were on average greater than new listings.  Thus, the trend of the inventory has continued to decrease.  Anecdotally, it appears that builders have gone upscale, are building fewer affordable houses which is adding additional downward pressure on inventory in this price range.

Finally, there is a vicious cycle going on.  Since inventory is low and buyers are finding it difficult to find the right house, current homeowners who are interested in selling their current home and upgrading to a nicer home are reluctant to put their house on the market.  This is reasonable!  Especially for our senior clients, Team Howlett will not let our clients put their house on the market until we know FOR SURE where they are going to go.

Looking into the future, we do not see a change in the near future (ie 2018) for single family houses $100,000 – $200,000.  Inventory will continue to be low.  Market times will be short.  Prices will continue to rise.

These are generalizations and do not accurately reflect all situations.  When you are ready for Team Howlett to come and understand your specific real estate need, contact Team Howlett or call 765-414-6531.  We will prepare a plan that is specific to your needs that entails Passionate Customer Care and Market Expertise.

Team Howlett 2017 Angie’s List Super Service Award

Team Howlett (Meg Howlett, Eric Howlett, Kelli Stump and Billy Brand) is proud to announce that it has earned the home service industry’s coveted Angie’s List Super Service Award (SSA). This award honors service professionals who have maintained exceptional service ratings and reviews on Angie’s List in 2017.

“The service providers that receive our Angie’s List Super Service Award have demonstrated the level of excellence that members have come to expect,” said Angie’s List Founder Angie Hicks. “These pros have provided top-notch service to our members and absolutely deserve recognition for the exemplary customer service they exhibited in the past year.”

Angie’s List Super Service Award 2017 winners have met strict eligibility requirements, which include maintaining an “A” rating in overall grade, recent grade and review period grade. The SSA winners must be in good standing with Angie’s List, pass a background check, record a current trade license attestation and abide by Angie’s List operational guidelines.

See our Angie’s List Reviews here:

Home Staging to Sell in Lafayette IN.

Staging Homes to Sell

Team Howlett home staged the living room, kitchen, master bedroom and baths.

Key Advantage Home Staging by Team Howlett is a cost effective homes staging solution that gets results (higher sold price, faster sale, easier transition, and lower cost).  4564 Spinnaker Trace Lafayette IN is an excellent example.  After FSBO and listed by another agency for 3 months, Team Howlett listed the property and staged the home to sell.  Accepted offer in 14 days.  The actual home staging was done in 2 days.  See a video of the staging in process for a good before and after.  Home Staging Lafayette IN Video.

For more success stories see Key Advantage Portfolio Success Stories.

Thanks so much. Sincerely, Meg & Eric. 765-414-6531 or 765-414-1795.

Eric and Meg Howlett of Team Howlett, Realtors of Lafayette IN bring to you Key Advantage Home Staging.

Current market conditions fall 2017

Current market condition in Tippecanoe County are extremely odd at the moment. I used to be able to say that the market is good or the market is bad. This market is very segmented. Below 100,000 is still extremely hot and location is not really a factor, believe it or not. I have never sold so many houses in north Lafayette and all of them were owner occupied which will be a real boon to that part of town. Under 150,000 in a good area is still extremely hot. That’s great for seller’s and really hard on buyers. I’d say that between 150,000 and 250,000 is a stable market. From there on, the higher you go, the worse it gets. There are way too many houses on the market in the upper end and hardly any buyers. No matter what price point you are at, proper pre-market preparation is absolutely critical. The house pictured below is a fantastic example. We discovered that there were hardwood floors under the carpet, so we recommended that the sellers rip up all the older carpet. Then we recommended removing the dark paneling in the family room, painting all interior walls and trim and changing out a few light fixtures. Once all the work was done, we staged the home to look like a model home and we sold it in six days! Call Team Howlett if you have any real estate needs! 765-414-6531.

Hadley Moors Real Estate West Lafayette IN – Good News!

Hadley Moors sub-division in West Lafayette IN is benefiting from an extremely low inventory level in the real estate market.  29 houses sold in Hadley Moors over the last 12 months.  Average days on market is 29 days.  As of 2/8/2017, there are no active houses on the market.  In a balanced market, there would be at least 8 or 9 houses on the market.  Less than that, it is a sellers market.  And it is!  Team Howlett has been involved in 5 of the 29 transaction in the last 12 months in Hadley Moors.  We know how to properly price properties and prepare our clients / houses in this market (both buyers and sellers).

Living Room before our help.

Hadley Moors living room after our help!

It is always best to understand what you are getting.  What minor repairs are needed?  What walls needed to be painted?  Are the structural issues sound.  Meg Howlett, Eric Howlett, and Kelli Stump (Accredited Staging Professional extraordinaire and support specialist) will help you every step of the way.

Please see our 5 Star Reviews on Angies List, Zillow, and Google My Business.  Quality Service is what we do.

Cheers, Eric

Team Howlett: Certified Angies List Provider

Team Howlett: 5 Star Premier Real Estate Agent

Team Howlett: Google My Business 5 Star