U.S. Home Prices on the Rise: What’s Next?

The Indianapolis Star reports that the average price of homes in the U.S. is steadily rising when compared to where they were a year ago. The most recent data, from May, shows a 12.2 percent jump from the 2012 averages.

For regular readers of this monthly newsletter, this is no surprise. There has been consistent good news on housing, like last month’s piece on home-sale agreements, or the 20 consecutive months of home sale improvements. In many places around the country, and even here in Central Indiana, it is starting to turn into a seller’s market — though buyers can still find fantastic deals and historically low interest rates.

After years of a down market, we are seeing signs of growth faster than we have in previous years. So what do you do next?

Well … it depends. If you’re looking to sell, now is a great time to list. There are still a few months left of the peak buying season, and if you move quickly, you can still show off your home with green grass and beautiful landscaping. If you’re looking to buy, rising interest rates should motivate you to contact me today and begin the buying process, which includes determining the kind of home you need and getting pre-approved for a mortgage.  I even have lenders that I can recommend to you.

Even though the peak buying and selling season is winding down, continued growth is showing that this year’s gains will continue into fall and winter. But who wants to look for homes in the snow when you can do so now in this beautiful weather? And if you wait until next Spring you will most certainly see higher interest rates.

Contact me today to get started.

The Latest Numbers Are In!

The Metropolitan Indianapolis Board of Realtors (MIBOR) has just released it's figures for the month of May. 

New listings for the area increased 15.6 percent in May and were up 5.6 percent for the quarter ending in May.  Pending sales up 18.9 percent for the three month period and closed sales increased 23.7 percent.  However, this caused a decrease in inventory levels by 16.5 percent over the same period. 

We did see prices increase along with the increase in sales.  The Median Sales Price increased 2.3 percent to $132,500 for the 2nd quarter while the supply of inventory decreased 30.4 percent to 5.6 months.

Interest rates have begun to tick upward but still remain at extremely low levels keeping home ownership attainable.  

Specifically for the month, pending sales were up 24.1 percent over last year with closed sales up 30.6 percent.  The average sales price has increased by 4.5 percent over 2012.

Home inventory has decreased by 15.9 percent which has lowered the months of home inventory from 8.1 months to 5.6 months.

If you would like more specific information about the market in your county or neighborhood, please let me know.

Tips For Buyers In A Seller’s Market

The real estate market in Central Indiana has settled firmly into seller’s market territory.
 

The newest report from the Metropolitan Indianapolis Board of REALTORS notes the increased activity on the housing market is creating somewhat of a frenzy, with “buyers eager for available properties compet(ing) like they haven’t in years.”

For sellers, this is a great thing.

But for buyers, it might take a bit more effort than in the previous few years to land the home you’re longing for. Here are a few tips to help buyers compete in this seller’s market:

1. Know What You’re Looking For. Determine your needs and your wants in a potential home, all before you’ve even started looking. This way, the moment new homes come on the market, you (and your agent) will know which ones are up for consideration and which ones aren’t worth pursuing, all based on your predetermined parameters.
2. Get Financing Squared Away. Plain and simple: Unless you plan to pay with cash, get preapproved for a loan. Otherwise, you’ll get left in the dust by buyers who have proof that they have the means to purchase the home in question, all while you’re still working to get finances squared away. Money talks; give sellers your word with a loan preapproval.
3. Prepare Yourself For A Bidding War. Be prepared to be outbid by other buyers competing for the same home. You can combat this issue by shopping for homes below your price range; in the case that a bidding war ensues, you’ll be able to up your offer and still stay within your budget. Note that if you’re only shopping for homes at the top of your price range, you’ll need to mentally prepare yourself for disappointment if you can’t keep up with higher offers from competing buyers.
4. Be Prepared To Make Decisions Quickly. In this market, homes change hands in short order. If you’re serious about a particular property, be ready to make decisions regarding purchase quickly. Tarry, and the home will likely get picked up by someone else in no time.

If you or someone you know is planning to buy or put their home on the market, contact me today, so I can get you started on this process.  Homes are moving fast and it's a great time to be a seller.