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Indy Named TOP Market for First Time Home Buyers

Zillow, the mega online real estate data website, has named Indianapolis as the top dog, numero uno, #1 market in the country for first time buyers.  Zillow used a number of factors in coming up with their top 10 list.  Those metro areas making the cut had:

  • Mortgage payments lower than rents.  (What’s not to like?!)
  • Low prices.  (Again, what’s not to like?!)
  • Low ratio of average price to average earnings.

Indianapolis homes sold for a median average of $148,263 this past month.  With the average household income running right at $52,000 per year, that means the average household can buy the middle of the road house for 2.8x their annual income.  That’s sweet!

And it is many times better than folks residing in San Francisco where the average household makes $83,222.  Now, that sounds good, but… how they manage to make the monthly payment on the average home, I have no idea.  Get this, the average price recently crested $1,000,000.  So, the average household has to pay 12x earnings forK the average house.   Ouch!!  Do the math- that just doesn’t work for most (define that 97%) people.

Ok, ‘nuff said.  If you’d like to learn how to take advantage of those low prices and low payments that Indy has to offer, it’s EZ… call me.

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

 

Housing- a County by County look

Central Indiana housing numbers for March and Quarter 1 (“Q1”) are in, and there’s just one word to describe them— “UP!” Sales were up 8% for the twelve months just ended, prices up 6% and heck, even listings were up 2%.  However, inventory remains tight, with just a 3.8 months supply available for shoppers.  That’s for all of central Indiana.  But when you look at what’s going on inside each county you get a different result.  So, here’s a Q1 look at each county…

BOONE–  Sales were only up 2% but listings were up 19%.  You’d think prices would’ve lost ground, but no, they increased 16%.  Go figure.

BROWN–  New listings up a whopping 98% and sales up an amazing 53%.  With that many houses flooding the market, why should prices be up 51%?

DECATUR–  Sales down 10% and new listings down 14%.  Yet prices jumped up 13%.  None of this is making any sense!

HAMILTON–  Sales up 6% and new listings up 4%.  Prices gained 2%.  I’m actually surprised these prices didn’t jump more.

HANCOCK-  Sales up 7% but new listings down 5%.  Prices gained 8%.  Surprised it wasn’t more.

HENDRICKS–  Sales up 8%, new listings down 3%.  Prices down 1%.  You’d thought prices would’ve risen.

JOHNSON–  Sales up just 2%, while new listings were down 6%.  Prices rose 6%.  Makes sense.

MADISON–  Sales red hot at 20%.  New listings not keeping pace, up 11%.  Prices up 14%.  Again, makes sense.

MARION–  Sales up 6% and listings flat.  Prices up 6%.  Again, makes sense.

MONTGOMERY-  Sales up 14% and listings a tad stronger at +16%.  Yet prices fell 15%!  Crazy.

MORGAN–  Sales up slightly at 2%.  Listings down 4%.  Prices up 5%.  Makes sense.

PUTNAM–  Sales up 9% and new listings surging at +23%.  Prices fell 13% as might be reasonably expected with the surge in supply outstripping the pace of sales.

SHELBY– Sales down 10% and new listings even slower at -17%.  Yet prices rose 13%.  Makes no sense.

So, with 13 counties reporting— results for 7 made sense and 6 did not.  I’m confident that if I took enough time I could figure out why each county behaved the way it did.  And I guess that’s why I do research on each house I list for sale or that a client wants to write an offer on.  Now, if you’d like that level of service when you buy or sell, then call me.  Remember…

“I work harder to make good things happen!