2018 Real Estate Report (Published 2019)
Click here to download a full copy of the 2018 Report:
• 2018 was the ninth straight year of U.S. expansion since the recession.
• When the books are closed, the 2018 GDP is expected to land in the 2.9%-3.1% range. (2)(3)
• U.S. unemployment in 2018 averaged 3.9% (4) and we closed the year with a 3.7% rate, the lowest since
• The inflation rate in 2018 was 1.9%.
• The average mortgage interest rates rose from 4.0% in 2017 to 4.6% in 2018. The rate at the close of 2018 was
• The U.S. stock market was more volatile than other economic measures. The Dow Jones Industrial Average
entered the year at 25,295 points, peaked at 26,828 in November then dropped to an unpleasant low of 21,793
in December. It rebounded and closed the year at 23,327.
• U.S. existing home sales, measured in units, is projected to drop by 3.6% in 2018 compared to 2017. (15)
• The state and local economies are as healthy or even healthier than the strong national economy. Job
creation in Tippecanoe County continues to be strong. Purdue is experiencing its seventh consecutive
academic year with no increases in tuition.
• Unit sales of existing homes in Tippecanoe County dropped by 1.5% in 2018. The decrease took place
primarily in the below $200,000 price range, where inventory is particularly tight.
• The inventory of homes listed for sale in Tippecanoe County dropped from 722 in May 2017 to 614 homes in
• The number of building permits issued in Tippecanoe County for single-family home construction dropped
from 482 in 2017 to 411 in 2018. The 2018 number may be more in line with the 429 permits issued in 2015
and in 2016. Perhaps, 2017 was the outlier.
• Buying and selling activity in December 2018 and January 2019 has been slower than most winters. The tariff
battles and the political unrest in Washington and Federal Government shutdown may be causing buyers to
wait on the sidelines until they better understand what the fallout might be if any.
• Other than issues driven primarily by political division, the national and local real estate economies are
healthy and should deliver strong results in 2019. It is premature to understand how detrimental the current
period of consumer apathy will affect the year.
Previous Years Reports:
Click here to download a full copy of the 2017 Report.