The view back through our window on the real estate market for central Indiana last month shows continued transformation, from a market slowed the last few years by a lack of consumer confidence with the economy, into a market that’s gradually becoming more optimistic and more traditionally shaped. The number of sales is very close to where it was last year at this time, but the difference is the prices of homes that are selling. Very few homes last year were selling in the upper-middle to upper price points. This year properties at those levels are moving too. If those sales are then averaged into the mix of all homes sold, the average price is higher than last year at this time, by almost 9%. To me, this shows a market that’s shaped more like ones we are accustomed to and I like where this appears to be going. Nothing breeds success more than success itself. I’m just not sure that everyone is getting the message yet. Those that have, have been taking advantage of the most incredible opportunities I’ve ever seen for purchasing a home…when I last checked today, interest rates of 4.375% for conventional 30 year fixed-rate mortgage money. And amazingly, FHA loans are 4.25% now for purchasing a home, and that’s with only a 3.5% minimum down payment.
Understanding where you’ve been often helps you to know where you’re going. For a detailed look at market activity last month with in-depth analysis, real numbers, charts and graphs, take a look at my latest Market Watch Newsletter.
It’s going to be interesting to see what happens next.
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