A Real Estate Market update

We recently sat down with our friend, Matt Evans, a broker-owner realtor at ReMax and @mattevansteam, to discuss his thoughts on real estate in 2025 and beyond.

Mortgage headlines focus on rates, but rates are only one gear in a larger machine. Buyers and sellers feel the pinch of monthly math driven by taxes, insurance, and homeowners association fees just as much as interest costs. In our talk with Matt, we unpack why a quarter-point move can trigger activity without fixing the core issue: affordability. The mantra “date the rate, marry the home” carries weight because life stages rarely wait for the ideal APR. Households upsize, downsize, or relocate for work, then refinance when conditions improve. That practical framing helps people focus on fit, not fear, while acknowledging the new normal of mid-5s to 6s rather than chasing the rare lows of the past decade.

Affordability pressures start upstream. Land, materials, and labor costs have lifted the floor on new construction, pushing typical detached single-family builds in Porter County into the mid-300s and up. While attached options and targeted programs seek to lower entry points, the supply of attainable housing still lags demand. Matt points to local efforts like Paradise Community Homes, which partner with builders to deliver near-market or slightly under-market prices and seed equity for first-time buyers. That approach aims to rebuild generational wealth for households who might otherwise rent for years. On the other end, limited inventory of premium lots creates a squeeze for higher-end buyers, illustrating how one community must balance both entry-level access and aspirational move-up paths to stay healthy.

Zooming out, the regional chessboard is shifting. Improved South Shore Rail service, transit-oriented development, and the Valpo Dash bus have strengthened ties to downtown Chicago while preserving Northwest Indiana's quality-of-life appeal. That combination continues to attract Illinois households seeking lower taxes and a calmer commute, a trend Matt sees in his client mix today. Yet sentiment matters: national turbulence, tariff news, and winter seasonality can pause decisions, thinning foot traffic without erasing underlying demand. Commercial real estate reflects similar caution, with fewer new openings but steady interest from operators expanding east from Lake County or crossing the state line. Meanwhile, local zoning, UDO updates, and comprehensive plan revisions set the rules that shape tomorrow’s supply.

For buyers, the most costly surprises are often recurring. Property taxes in Valparaiso’s Center Township hover near 1.2 percent of assessed value due to a school referendum, with statewide caps stepping up to 2 percent for residential investment and 3 percent for commercial. HOAs can run from the mid-hundreds to well above that in condo communities, covering exterior maintenance, landscaping, snow removal, and trash. Insurance adds another shock, particularly for second homes in storm-prone regions and even inland markets where premiums have surged after years of underpricing. A smart budget includes these line items up front, not as an afterthought, and builds in cushions for periodic reassessments and HOA increases that arrive long after the closing table.

Investors face their own recalibration. Flipping still exists, but slim margins and higher rehab costs demand real value creation, not cosmetic lipstick. The easy “paint and fixtures” era has faded as buyers expect solid systems, roofs, windows, and mechanicals to be addressed. With Valparaiso’s median price up 191 percent over the past decade, acquisition costs compress spreads, making distressed or structurally challenged properties the only viable plays for experienced operators.

On the portfolio side, REITs remain a flexible entry to real estate exposure, while local rentals can benefit from LLC structures for liability and operational clarity. Across strategies, the throughline is discipline: know your numbers, underwrite conservatively, and partner with trusted agents and lenders who can pressure-test assumptions before you commit.