Buying

Local Home Sales Continue to Increase

November housing  market numbers are just in for Central Indiana, courtesy of MIBOR.

  • Unlike the nation as a whole, new listings are slowly increasing, +4% from last 2017.
  • Sales are up as well, 2% Y-o-Y, but in a slowing pattern.
  • Prices continue to rise, with median sales price now $179,000.  Up 9% from a year ago.
  • Sellers are getting 95% of their original asking price. (Which is to say it’s still a seller’s market but not like last spring.)
  • Available inventory remains very tight, with 7% fewer houses available for each buyer to choose from.

Want to learn how to take the most of this market for your own self? Give me a call at 317-625-0655.

6 Best Months to Sell

Which are the six best months to sell your house?? Most people would venture to say June-July-August and then say ‘Definitely not December or January”.  Looking back over available inventory and sales activity during the past year, here are the months I found to have the most sales activity per individual listing.

  1. April
  2. March
  3. May
  4. June
  5. February
  6. January

I used sales per listing as my yard stick because if you have a lot of competition for a given property, then multiple offers are likely and prices are going to get bid up.  It’s ECON 101 – basic supply and demand.  Tax Day or April 15th is about the peak, with the peak 🗻 season covering the first six months of the year.

And just in case you’re curious, here’s how the rest of the year shakes out:

  1. July
  2. August
  3. September
  4. October
  5. December
  6. November

So, if you’ve got a house 🏠 on the market currently, you’re wading through the time of year when the number of buyers underwhelm listings.  Soon, very soon, the tide will turn.  If you’re wanting to sell your house, then come January 1, you might want to get your house on the market.  If you’re not quite sure what to do to get it ready or what to price it at… easy, peazy – give us a call.  No strings attached!   We are here to help!

Trying to Avoid a Jumbo Loan??

I was talking to a client this past month and they mentioned they wanted to stay clear of a JUMBO loan.  We discussed some strategies that I have seen over my years in the business that have proven helpful to some in these situations.

  • Consider borrowing from your 401K. Most 401Ks allow one to borrow from the plan.  Typically, there are no upfront cost and you’d be repaying yourself.  It usually takes about 21 days to get the $$$ in your hands.  All you usually need to qualify is a copy of your purchase agreement and a preliminary settlement statement (from the closing agent) on the new house and you’re good to go
  • Do a Conventional/Conforming 1st mortgage and couple it with a simultaneous second mortgage or HELOC (Home Equity Line of Credit) to fill the gap. Then once your current house sells or you get your bonus or whatever, you can pay off the second / HELOC.  Typical costs of a HELOC are minimal, the rate is good, and repayment is often interest only.  Interest is usually deductible.  Not all mortgage lenders will have these products, though you can oftentimes coordinate with a bank or credit union to do that piece of the transaction
  • Plan on doing a Conventional/Conforming 1st mortgage on your purchase.  Take out a HELOC on your current residence now. This approach does not affect your current 1st mortgage.  Again, the upfront cost is minimal, interest rate is good, and repayment is often interest  Interest may not be deductible but you should only have this for a few months anyway.  Going this route gives you your equity in cash to work with as you go into the new transaction.  It is important to know that this MUST be completed prior to your house being listed or put on the market. It’s about impossible to find a lender who will make that loan once you’ve listed it or the terms will be far inferior.  Turnaround time on this is probably 1-3 weeks.  Different lenders work these differently and with various timelines.
  • Some combination of the above.

Hopefully this gave you some food for thought on how to avoid that Jumbo Loan. When you are ready, give me a call or text at (317) 625-0655. I’d be happy to jump on a call to work through these strategies and determine what is best for your situation.   Until then, make it a great day! – Bob