Indy Home Book » Market Conditions

Market Watch – January 2012 edition

Richard — Tue, 17 Jan 2012 04:16:55 +0000

January is always an interesting point in time. The end of one year and the beginning of the next. A look back at last month and last year’s residential activity for the nine county central Indiana area reveals a market that’s keeps improving in all the right ways. The amount of inventory on the market has been reduced dramatically from high levels seen in 2008-2009 when an oversupply of homes for sale caused downward pressure on prices. Since then, a slow but steady reduction of inventory occurred, and average prices have been rising.

For greater perspective on the residential market for last month, take a look at my latest Market Watch Newsletter, with more in-depth analysis, real numbers, charts and graphs.

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Market Watch – December 2011 edition

Richard — Thu, 15 Dec 2011 03:51:06 +0000

A look back at last months residential market shows a continuing stabilization of inventory and modest average price increases overall compared to last year for the 9-county central Indiana, greater metropolitan Indianapolis market. It should be noted that the country as a whole showed a drop in the average sale price over the same period, so this area is ahead of the national curve. Stabilization refers to the amount of inventory, homes on the market, which has declined compared to last year. At the same time, the number of homes with pending sales increased more than 7 percent compared to last year at this same time.

For more in-depth analysis of market activity, including real sales numbers, charts and graphs, take a look at my latest Market Watch Newsletter for this month.

As this year comes to a close, the market here is poised to move forward in an increasingly positive manner in and through 2012. It will be interesting to see what actually happens.

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Optimism Increasing for New Home Sales

Richard — Sat, 10 Dec 2011 22:46:19 +0000

A significant percentage of the residential market here locally has always been new home sales. Over the last few years however, new home building has slowed even more so than other segments of the market, the number of new building permits issued off dramatically from what normally occurs. The market slow-down caused more than a few local builders to call it quits, some were even long established names in the home construction industry here. Those that have been in a position to stick it out have had to sharpened their pencil on pricing in order to attract customers and be competitive with the rest of the market. But just like the residential market in general, new construction has been making a slow but steady comeback, and the future is looking brighter. One indicator…it’s getting to the point that it is nearly impossible again to find good vacant ground for sale. Developers and builders are optimistic about the future again and have been buying almost everything out there. They believe that tomorrow is looking better and better, and want to make sure they are positioned to meet future demand. It is coming.

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Pending Sales Surge in October

Richard — Fri, 02 Dec 2011 16:08:22 +0000

While it’s critical to remember that the national real estate market is fragmented and that the dynamics of each area’s market are unique from any other, it’s still interesting to get some perspective on what is happening nationally and regionally. Those that track market activity across the country say that October 2011 pending sales of residential properties jumped nationally to an average of 10.4 % over September, which was 9.2% above levels seen in the same month in 2010. In the mid-west in particular, the gains were even more pronounced, with pending sales up more than 24% over September…and over 13% above October 2010. Buyers are taking advantage of the affordability of homes now. Pricing is still very competitive, and at the same time, extremely low interest rates make home payments very affordable.

Are there even better days ahead? Only time will tell. But the numbers over this last year and now recently have more than a few convinced that it’s headed in that direction.

Take a look at today’s rates… updated daily. Current Mortgage Rates

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How’s the Market?

Richard — Sun, 20 Nov 2011 17:26:31 +0000

If I kept a journal of questions people asked me because I’m a Realtor, this would by far be the most common one. There is a very long answer to that and a very short one. Probably the best one for here is in-between. The market is good and getting better. The supporting facts: About 21,300 homes have either sold/closed so far this year or have a sale pending now. That number is for the 9-county greater metropolitan Indianapolis, central Indiana area… Marion, and all the surrounding counties. That’s a lot of homes. This is slightly ahead of where we were last year at this time. Remember that this is without any government stimulus packages like last year to boost sales. The most important thing though is the total inventory is down a lot from previous years. Less homes on the market. It is becoming a more balanced market…the buyer to sellers ratio more balanced. Stabilizing prices result from that. The average price of a home has even gone up a little bit for a number of months in a row now.

The funny thing is, some people don’t belive me that it’s a good market for both buyers and sellers. Too much conditioning via the standard media model of “negative sells” . I guess you have to ask who they care about more, themselves or you?

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Market Watch – November 2011 edition

Richard — Sat, 12 Nov 2011 13:00:45 +0000

The saying goes, “if you know where you’ve been, then you can predict where you are going”. Not sure that is always true, but in this case it probably is. Last month, and for a number of months now in a row, sales of residential properties here in central Indiana have increased compared to the same period last year, and the number of homes on the market have declined. Translated, the market is much more in balance than it has been in a while. With inventory declining, there is more competition between sellers for active buyers. When that happens, prices trend higher.

For more analysis and an in-depth look at the residential market activity in the 9-county, greater Indianapolis area, including sales numbers by county, with comparative charts and graphs, take a look at my latest Market Watch Newsletter for this month.

The climate continues to improve for sellers. Still a good market for buyers with the extremely affordable interest rates now.

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Tall Tales

Richard — Fri, 28 Oct 2011 23:56:21 +0000

Did you hear the story about what’s happening in the local real estate market? It is so awful, so slow, that only a small percentage of all homes on the market were selling. And, most of the homes on the market are foreclosures or bank owned properties. Also, those homes that did manage to sell…sold for 70 cents on the dollar. Every one of them.

Believe it or not, I hear a version of this often from buyers that are beginning to look for a home. They hear stories about a fantastic below market price that somebody got, along with a constant diet of news about the economy and slow real estate sales nationally. No wonder that they smell blood. The truth about the market is another tale altogether. First of all, throw out all the stories that talk about the national market. What’s happening elsewhere has nothing to do with what’s happening here. Real estate sales are all local. And really, each area or neighborhood has different overall results. But it still gets down to each home, each Seller…each has different circumstances that motivate them to sell. Some have no equity to work with, some do. Some have to sell, some don’t. Every deal is different.

The market is a bit challenging now, but it’s not a bad market. Sales are about what they were last year. Inventory is down and prices are up some. So, it’s headed in a positive direction.

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Market Watch – October 2011 edition

Richard — Fri, 14 Oct 2011 14:26:36 +0000

If you read some of the articles in the newspaper you’d think that the local residential real estate is in the tank. Right? Well, that’s far from the truth actually. What’s really going on is vastly different. The best way to explain what is actually going on is just to tell the truth, quantifying the amount of activity to put things in perspective. There were over 1600 homes with sales that pended last month in the nine county, central Indiana, greater Indianapolis metropolitan area. That’s a lot of homes for a September. A five percent increase over last year at this time. And the total number of homes on the market is declining. That means inventory is tightening with fewer homes competing for more buyers. Whenever that happens, prices should edge upward, which they have. Funny…supply and demand really works. This has not been a one month occurrence. The market has been on this same path for a number of months now. So what’s going to happen down the road? Well, that’s always the big question isn’t it. We’ll see.

For more in-depth analysis of last month’s residential real estate activity, including real numbers, charts and graphs, take a look at my latest Market Watch Newsletter.

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Today’s Market Pluses

Richard — Thu, 06 Oct 2011 12:00:18 +0000

The residential market has some challenges these days, but in a free market dictated largely by supply and demand, whenever there is a minus someplace, there will be a plus someplace else. The positves: Home prices are generally more affordable now, and when coupled with today’s interest rates, they add up to a huge plus. Interest rates now are very close to the lowest ever available in history for refinances and home purchases. (Check today’s rates using the link below). Worth noting specifically is the fixed 30-year FHA loan at 3.75%. Along with the low down payment needed of only 3.5% of the home’s purchase price, it’s especially sensible for first-time home buyers.

The rule of thumb for refinancing is: If the interest rate available is one percent or more lower than what you have now, then take a closer look. Run the numbers…do the math. It costs about $2,400 +/- to refinance a mortgage if totaling all associated closing costs. See how long the payback would be from the savings each month between your monthly payment now and what it would be after the refinance. For example, if it takes 18 months to pay back the closing costs and you plan on staying in your current home at least five years or more, then it probably is worth pulling the trigger.

If you are considering a move to a new home, loan rates couldn’t be more cooperative. It’s a good time to sell your current home too. Don’t be fooled by media naysayers with reports that the sky is falling in the local residential market. Just the opposite is true. More than 3,500 homes have sold/closed in just the last two months in the 9-county central Indiana, greater metropolitan Indianapolis area and over 2,100 now with a sale pending. A mark imrovement over last year at this time.

Take a look at today’s rates… updated daily. Current Mortgage Rates

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Market Watch – September 2011 edition

Richard — Sat, 10 Sep 2011 01:15:49 +0000

The residential market in central Indiana continues its positive gains in all the right areas. The number of sales last month increased about 7 percent compared to the same month last year with nearly 1,900 homes sold in August. What’s even more significant is the number of homes on the market continues to decline. Important because as inventory tightens, prices stabilize too. Less Sellers and more Buyers equals higher prices.

For an in-depth analysis of last months residential market activity for the nine-county greater metropolitan Indianapolis area, including real numbers, charts and graphs, take a look at my latest Market Watch Newsletter.

Since market activity is more than anything a reflection of consumer confidence, it’s encouraging to see the numbers headed in a positive direction for a number of consecutive months. It will be interesting to see what the future will bring.

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