Market Trends

New FHA Mortgage Limits

HUD announced in December that FHA mortgage loan limits will increase for all Indiana counties.  In 2018 the loan limits ranged from $294,515-322,000.  Corresponding limits in the new year will run from $314,827-343,850.  FHA mortgage loans are insured by the federal government.  In most cases, they require a minimum cash down payment of 3.5% of the purchase price (ie. A house selling for $100,000 would require a cash down payment of $3500).  The urban rumor mill has it that these are for first time home buyers only.  That would be wrong!  They are available to most anyone, regardless of income or whether you’re a first time buyer or it’s your seventh house.  However, generally you can have only one outstanding FHA loan at a time, and they are for primary residence only.  You cannot buy a rental property with a FHA loan— (drum roll) you can buy a 2-4 unit property with a FHA loan if you are going to live in one of the units!  And even in that case, the down payment is only 3.5%!  Talk about a way to get started in real estate!!  Want to know the loan limit in your area?  Call the experts at Indy’s Choice today.

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!