Market Trends

Sales and Prices Continue to Make Gains

Both closed sales and the median average sales price continued to make gains across central Indiana during February.  Sales were up 10% over last February, and were up 8% for the 12 months just ended versus the same period ending February 2015.  Prices were up 3% over last February and 6% year-over-year.  The median average price now stands at $148,000 in the central Indiana market.  Btw, that’s the highest February number on record!

Meanwhile, the number of new listings continued to lag wKay behind the pace of sales.  Inventory is down 6% from a year ago, making available inventory for buyers slim, slim, slim.

All of that is great news for sellers.  Now, if you’d like to learn how to take advantage of this seller’s market— give me a call.

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

As Inventory Tightens Down Payments Increase

It’s basic supply and demand from Econ 101.  The number of homes for sale relative to the number of buyers, has been doing a steady march down in recent months.  That means there are fewer homes available for buyers to choose from and when they do find a good one they need to pull the trigger (if they truly want to become a home owner rather than a home shopper or renter).  On the flipside, those home owners who want to be home sellers— well, now is a good time to do just that.

One measure of the relative tightness of the market can be found in the amount of cash it takes to buy a home on contract (ie with seller financing).  A couple years ago, deals were occasionally put Ktogether with as little as $2 or 3,000.  Now, you can fuggedabout doing that.  Double the number.  $5000 is now the entry point for making a good deal work.

If you’d like to learn more about developing a winning strategy geared to today’s market— call me.

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

Look Who’s Buying Homes

Well, it’s not first time home buyers.  That cohort is usually the driver of a strong housing market.  They feed the bottom of the pyramid, buying someone else’s starter home so they can move up.  However, only 33% of all home buyers in the central Indiana market in 2015 were first time home buyers.  That was the lowest that cohort has been since 1987!  Analysts attribute that to heavier student loan debt, not enough breadwinner jobs, and an aversion to use of credit among millennials.

Ok, let’s talk about who the average buyer in central Indiana was this past year.  They were a married couples, 39 years old, and making $77,800 a year.  This was about five years younger than what was seen nationally; and that could probably be accounted for by the fact that our prices are so much more affordable than most other places.

Two out of three buyers were married couples, followed by 15% single females, 9% single males, and 7% unmarried couples.  11% of all homes purchased were done so to include multi-generational living arrangements.

Need a plan to sell your house?  Call me… I work harder to make good things happen!!