Market Trends

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!!

Sales and Prices increased in 2015

The final 2015 numbers are in, and they show that both sales numbers and sales prices rose in central Indiana.

The number of sales reported by the MLS increased 8.5% over 2014; with 32,190 houses being sold in the region.  That’s a big increase.

The median sales price rose 5.1% over the preceding year, finishing at $147,000.  (The median price is the middle price, with half of all homes selling above or below this number.)  Prices have now risen for the past seven years, and this year’s prices were even higher than the bubble prices of a decade ago.  Now, I’m not sure whether that’s good or bad for the market, but it definitely was good for those who were selling.

New listings did not keep pace with the run up in sales, increasing only 3.2%.  With new sales outpacing new listings, the inventory of houses with For Sale signs decreased 6.6%.  The current menu of 10,390 houses for sale is what you might call a limited supply.  In fact, it’s the lowest supply relative to sellers in over a decade.

So, I have to ask, “Where are the sellers?”  To a certain degree it doesn’t make any sense.  Demand is outpacing supply, prices are rising, and the fear of rising interest rates scaring buyers to the sidelines looms larger following the Fed’s recent rate hike.  So, help me out, tell me, why aren’t more people selling?

If I can be of help, let me know.  “I work harder to make good things happen!”  -Bob

Who’s Selling in Indianapolis?

A recent survey commissioned annually by the National Association of Realtors answers that question quite nicely.  Read on…

In 2015, the average Indy home seller was 50 years old and had owned their home for the previous eleven years.  The eleven year hold period is longer than the nine year national average, and roughly twice what was common in decades past.  Undoubtedly, downward price pressure during the Great Recession caused many would be sellers to hold off for better prices.  But, now that prices have been on a strong uptick, sellers are finally motivated to put their houses on the market.

The primary reason cited for selling and moving was the home was too small (18%), followed by a change in family situation (16%) and a declining neighborhood (15%).

92% of home sellers utilized a Realtor’s expertise.  On average, houses were on the market for four weeks before an accepted offer was achieved.  Sale prices averaged 98% of the final list price (which is to say that sellers got awfully close to their asking price).

Now, if you’re tossing around the idea of selling, and would like some insight into what price your home might sell for, what improvements might be cost effective/beneficial to a sale, and how it could be successfully marketed— just give me a call.

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