2021 Year End Market Update

Hey there! You may be seeing quite a few realtors recently posting their 2021 end of year stats. It was an awesome year in real estate, and many are (rightfully so) celebrating their wins. My goal for today is to break it down for you, share the total market numbers for the year, and then offer 2 quick tips for how you can be a successful buyer in 2022.

2021 was an incredible and (absolutely) insane year in real estate. 2 remarkable NWI stats:

• Home selling prices were +10%

• The number of Days On the Market (DOM) decreased significantly–essentially a third of what it was in the prior year. (DOM was only about 2 weeks, it used to be closer to 2 months).

Now, when we look at Valpo specifically, the numbers get even more bonkers:

• Home selling prices were still +10%

• However, there were 10% less homes sold than in the prior year.

• All while selling at 99.7% of list price. (Meaning, homes basically went for the price that they were listed at.)

Now, there were exceptions to that. For instance, in a few of the summer months we saw the average home in Valpo sell for above list price and Days on the Market were even shorter (again…BONKERS). So, to sum it up, the housing shortage is very real. We just simply do not have enough homes to go around right now. Plus, building materials are at a high, and supply chain delays are impacting timing there too. All of that, combined with the low mortgage rates, really drove the demand in our market and the prices went up.

So where does that leave buyers and sellers this year? What does all of this mean? And am I just trying to scare you into thinking the sky is falling?! No! Not at all. The sky is still there, you just can’t really see it in January. In Valpo. For real, this is not a scare tactic at all. As I said before, my goal is to empower buyers with the information you need to be successful! So here are 2 quick tips to help you in 2022:

1. Start shopping early

Buyers used to shop for a few weeks to maybe a month or so to find the home that they wanted. Now…it’s taking a little bit longer. If you’re looking to buy this summer or even early fall, start looking now. Again, not a scare tactic and you don’t need to buy the first place that you see. But, shopping earlier will give you a better idea of what you can get for your price range, what neighborhoods you like, and maybe other criteria on your list that just is not as important as you thought–or some that are more important. Bottom line, it is never too early to start looking and you want to find your home before you have to find your home. We don’t always make the best decisions when our backs are up against a wall, so don’t get to that point. Start looking now.

1. Get pre-approved

We cannot put in an offer for you on your dream home until you are pre-approved. We literally have to submit that piece of paper with your offer to buy. The pre-approval let’s your agent, and the seller know that you can obtain the financing to make the purchase. Getting pre-approved with a local lender is a fairly quick and easy process. I work with some great lenders that I can refer. I do not get kickbacks from any of them, I just work with great people, who also have teacher hearts, and are on top of their game. So give me a shout if you want me to refer you to someone.

That’s it for now! Byeeeeeeee.