Potential Home Buyers: How Much Can You Afford To Spend?

 Having a finger on the pulse of how much your household brings in each month and also how much money flows out in that time period will be what helps you to understand which price range you should be shopping within.

One helpful tool that can get you on the right track is the Homebuying Calculator from MSN Money. By filling out the fields required on this calculator as accurately as possible, you’ll be given a solid estimate of how much money you can put toward a house.

One area that remains hazy on this calculator, however, is the “Other monthly obligations” item. Here’s a sample of what these items might include:

• Student loan payments
• Healthcare/gym costs
• Monthly utility bills
• Your household’s entertainment and recreation budget
• Food budget
• Clothing budget
• Savings budget
• Transportation budget

In addition, first-time homeowners must realize that it costs a lot to get a home up and running. Items you may want or need to invest in include:

• Furniture
• Large appliances — washer, dishwasher, refrigerator, etc.
• Furnishings and home accessories — lighting, dishes and cookware, window dressings, rugs, etc.
• Outdoor items — lawn mower, ladder, outdoor furniture, etc.

Tally up the amount allotted to all these items — as well as any other areas where you have payment commitments — to get the best estimate possible for your home-buying budget.

Once you’ve squared away how much you can afford and are ready to begin shopping for a home, contact me to get the ball rolling on your home search!

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. 

We have experienced another sign that the market is continuing in recovery mode....the May slow-down!  At least it feels that there is a slow down. While the sales in Carmel remain brisk, we are seeing a tendency toward normal in the market.

In Indiana we have a seasonal selling time for real estate.  The market tends to pick up around the end of February and continues to build steam until June where it is hot and heavy through the month of August when we see a slowing of sales.  This is the time when most families are wanting to make their move and generally speaking, most everyone would rather move during the warmer months that tackle a move during the snow storms or bitter cold of the Indiana winter.  Once the kids get back in school we see continue to see moderate sales as those last few buyers find their new home so they can get settled before the cold sets in.  

However, one caveat to that is the month of May.  Historically, the month of May, for whatever reason...be it graduations, Mother's Day, the end of school...tends to be a slower month for sales.  At least that was the old norm.  Going forward, we'll just have to see if this holds true but I personally want to say this is a sign that we are getting some serious recovery!  And that is great news!

3 Reasons Your Home May Be Worth More Than You Think!

Today’s housing market is very different from the market of the last few years.
 

Homeowners in the last 5 or 6 years seemed to fall into two camps: One group found themselves underwater, owing more on their mortgage than the property was worth. Many of these homeowners were in danger of losing their home to foreclosure. The other group, due to dramatic decreases in the value of real estate, had to put off moving into new homes because the equity they had built up in their current home had all but evaporated.

For homeowners in both of these groups, it is understandable that they’d be hesitant to sell their homes today after the roller coaster of the past few years. However, the reality of today’s market is that home values have increased, in some markets dramatically, and it might just be the perfect time to sell.

Your home might be worth more than you think. Here are three reasons why.

1. There are Fewer Distressed Homeowners
One of the big reasons why prices dropped so dramatically in the first place is because millions of homeowners, hit hard by the recession and falling prices, could no longer afford their mortgage. Facing foreclosure, they attempted to sell only to find that the value of their home was less than they owed on them.

These homeowners are called “distressed” homeowners, and to date there have been millions in this situation. Today, however, distressed homeowners may find themselves in a much better position!

However, according to the National Association of REALTORS, distressed sales are at their lowest point since 2008, when the foreclosure crisis started. This means distressed sales are no longer affecting the market as strongly. Non-distressed sellers today find themselves in a much better position than at any point since the housing crisis began.

2. Prices have increased
Many homeowners may not realize it, considering how far the real estate market fell when the housing bubble burst, but in the past 12 months, prices have actually rebounded at a fairly remarkable pace.

In fact, according to the National Association of REALTORS, prices rose 11.8% year over year in March of 2013. This is the biggest yearly increase in prices since November of 2005, when the market was near its peak.

For homeowners, this incredible increase in prices means that much of the value that was lost during the housing crisis may have returned, and people who put off selling their homes are beginning to see the value of their properties arrive at levels where selling makes sense again.

For people who were underwater, this is welcome news. These homeowners may very well have equity again for the first time in years. For people who had planned on moving up into a bigger home but held off because the value of their current home was too low, these price increases are a sign that it may be time to start considering moving up again. But price increases aren’t only reason why selling today might make sense.

3. Housing Inventory is Low, and the Number of Buyers is Growing
Generally speaking, the real estate market needs about 6 months of inventory in order to keep up with normal supply and demand. This means that at the current rate of sales, it would take 6 months for all of the homes for sale in the market to get sold.

In today’s market, there is significantly less inventory than that. In fact, nationally there is about 4.7 months worth of inventory available. This number doesn’t tell the whole story, however. In some areas, there is less than a month of inventory. There are even some places that only have a few days of inventory for sale!

At the same time, more people want to buy homes today than at any time in the past 5 or 6 years. Interest rates are at near record lows and a new generation of homeowners are trying to buy their first home.

The result is a simple supply and demand issue. There are fewer homes to sell and more people who want to buy them. Make no mistake about it, today’s market is a seller’s market and people who sell their home today are in the strongest bargaining position in years.

You Are in the Driver’s Seat!
If you have been waiting to sell your home, especially if you or someone you know is having difficulty with their mortgage, it is time for you to start exploring your options because your home may be worth significantly more than you realize. The important thing is to know where you stand.

Do you know what your home is worth today? What are homes in the area selling for? These are all questions to which the answers have changed significantly in the last few months and knowing what your specific situation is can help you make more informed choices.

As a real estate agent in today’s market, I make it my business to have the most up-to-date information and can help you understand exactly what your current situation is. If you have been underwater, it is entirely possible you are not anymore. If you have been holding off until the market started to recover, that time is now.

Contact me today for a free market analysis and let me help you determine your best options. Arm yourself with information and make a more informed choice. It might just end up being an incredibly profitable decision.

New Home Building Permits Climbing In Indiana

In the nine-county metro Indianapolis region, there was a 55 percent jump in new home filings in January 2013 compared to January 2012. Overall for 2012, there was a 16 percent increase in permit filing from 2011, and that growth is continuing into the new year.

According the the Indianapolis Business Journal, Johnson County saw a 79 percent increase from the previous year and great gains were also seen in Hendricks, Hamilton and Marion counties.

Naturally, most new home construction is taking place outside of the urban centers. Indianapolis’ rapidly growing suburbs are beginning to offer more of the benefits of city life, like locally sourced and ethnic restaurants, shopping and new art galleries, making suburban life more appealing.

With building and new home construction prices still offering very good deals to homebuyers, we’re seeing signs that many Hoosiers are trying to make these purchases before these massive savings evaporate. For our clients who are looking to sell a home in or near a neighborhood with plenty of new construction happening, talk to me about what your best options are for listing your home to stand out from those who may consider building.

For existing home buyers and sellers, new home filings show strong growth in the Central Indiana home market as a whole and is another sign of continued recovery.