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What Home Buyers are Buying

This past year central Indiana home buyers overwhelmingly chose existing homes over new homes (by an 89-11 margin). Almost half did so with the expectation or desire to choose and customize design features, and many felt that they were getting more bang for their buck with an existing house. 82% of the homes bought were detached single family residences. It actually surprised me that 18% bought condos or townhomes. Really surprising. But 12% were senior related properties, and that might largely explain most of the 18%.

The average home was 1940 square feet and was built in 1996. So, while buyers didn’t opt for new homes, they definitely liked those with a newer feel to them.

The typical buyer stayed close to home, with the median move from old to new being just 10 miles down the road. The average buyer says they’ll live in their new home for 10 years, which is certainly less than forever (rarely happens despite what people say) but definitely more than a 5 year hold that one might see in a highly inflationary market or one dominated by military personnel or 20 somethings.

Thinking about buying or selling— call me to get the full scoop! Talk soon, Bob

“I work harder to make good things happen!!”

Sales in January Continue to Grow

Sales in January continued at a very strong pace, up 8% over last January and pacing the year-over-year totals up 8% as well. (Those are strong, healthy numbers, btw.) On the other end however, new listings continued to lag far behind, down 9% from last January. This unlikely combination of forces (surging sales and lagging listings) just doesn’t make much sense. I mean, if sales are growing AND prices are rising (up 8% over a year ago) then one would think more homeowners would be putting For Sale signs in their front yards. But not! The inventory of houses available to buyers is at 3.8 months; which is darn low. All of that is good news for homeowners wanting to sell their houses.

If you’d like to see what houses are selling for in your neck of the woods, just ask! Talk soon, Bob

“I work harder to make good things happen!!”

Non-Banks Making More Mortgages

Back in 2007, banks made 3 out of every 4 home mortgage. As the financial crisis deepened, they became just about the only source for mortgage loans— that despite the fact their lending practices were at the root of the cause of the financial crisis. Go figure?!

However, now the wor has turned. Banks now account for just 1 out of every 2 mortgages, and we’re starting to see some of the big banks exit the mortgage biz altogether. That’s fine with me. Good riddance! Historically, big banks have been the stingiest and least friendly lenders to work with.

Today, we’re seeing more and more credit unions and especially mortgage companies making loans so that people can buy houses. I think that’s great news for consumers. Mortgage companies are more consumer-oriented, more creative, willing to figure out ways to make more loans, and just downright friendlier and easier to work with. I mean, what’s not to like? Hopefully this trend continues.

If you have questions about mortgage financing, please be sure to ask. I spent 17 years in those trenches and still have a strong network to call upon. Talk soon, Bob