July Monthly Market Indicators

I'm sure you have been wondering just where is this market taking us.  The stats for July are in and are showing continued improvement in the housing market, regardless of what you may have heard from one local company earlier in the month.

The Central Indiana housing market continues to show impressive sales activity with increasing median and average housing prices.  Inventory hit a low earlier in the year and continues to stay at a relatively low rate...at least we have consistency here.  New listings continue to add to the inventory selection as buyers adapt to this changing, fast-paced market.

How did Hamilton County come out for the month of July?
New listings for the month of July were up 19.6% over July 2013 with a three month total increase of 13.4% over the same period last year.  Sales continue to be brisk with an increase of 39.6% month to month over last year and a total increase over the period of May through July of 30.0%.  

The average sales price for July was $259,822 which is a 4% improvement over last year with a median sales price of $225,000.  The median sales price for the same period last year was $214,500 which shows a 4.9% improvement.

Where is all this headed?
Once again, since my crystal ball still eludes me, I'll just have to share what the industry predicts.  The status of mortgage rates and what the fed ends up doing, along with the low inventory will be the key factor's as to how the market will swing.  Uncertainty of the upcoming effects of the Affordable Health Care Act may have some impact if it ultimately affects employment and wage growth. That may pull some of the buyers from the market.  

Mortgage rates are currently holding steady but an increase could hold some buyers back or pull them from the market altogether.  We have seen some instances where buyers have gotten caught up in the increased rates and have had to lower their expectations.  

How should I react to this news?
I would say it all depends on your goal and what you want to accomplish.  If you are considering buying, I would say if you're in the position to do so, DO IT!  If you need to sell and if your home is market ready, don't wait, get it on the market now, since we are faced with some uncertainty of what will happen six months down the road.

Should you wait until next Spring?  One thing that is most likely going to happen is that you will see interest rates increase. Currently, they are holding steady, but we don't know how long that will last. We are seeing an increase in sales price, so if you are moving up, you're probably best not to wait.  If you're looking to down size, weigh the cost factors of where you are at vs. where you will be once you move.  That will be your determining factor. You may decide that getting out from under the big house, mortgage, big heating bills before winter might be the best thing to do. One thing that I can say, is that today we know what we are facing, next Spring, it may be another story.

If you are considering making a move, please contact me at 317-558-7771 so we can discuss your goals and determine what works best for you.  If you would like to discuss the market in further detail, I'm always willing to buy you a cup of coffee and chat about it.

Until next time.....

The Westons Update...Yes, the Market is HOT!

There has been quite a bit of activity going on in the Westons neighborhood the past few months and it is safe to say that sales and sale price have dramatically increased since the first of May.

Since May 1st, 9 homes have sold with an average sales price of $306,844 with an average of 45 days on the market.  Of those 9 homes, four of them had accepted offers within 10 days of going on the market.  The average sales price is 98% of the listed price and computes out to $119 per square foot.

Compare that with the period from February 1 through the end of April and we find only 5 homes sold with an average sales price of $204,700.  The average days on market for those sales was 54 days and the average price per square foot was $102....a pretty dramatic increase.

Currently there are 6 homes listed for sale in the MIBOR BLC, 4 of which have pending offers.  The two homes currently for sale are the homes at 10901 Weston Drive and 10736 Morristown Court.  If you or someone you know would like to take a look at either of these two homes please contact me.

If you have considered selling your home and would like to still get in on this hot market, don't wait another day!  Give me a call so we can discuss what we need to do to get your home sold.

 

Rising Mortgage Interest Rates Signal Time to Act

Central Indiana residents looking to buy a home this summer will be watching mortgage interest rates start to climb. Though rates remain at historically low levels, the national averages for interest rates are on the move.

According to bankrate.com, the benchmark 30-year fixed-rate mortgage was around 4.48 percent earlier this month. This is compared to around a 3.87 percent rate last year at this time.

Overall, the rise of interest rates signals a stabilizing economy that will need less caretaking from economic industries. This is good news, but for people looking to buy a home in the next few months, it could be a signal to act.

According to some experts, the steady growth in mortgage interest rates will keep moving along. This does not mean you have missed the opportunity to buy a new home, as rates are still remarkably low and home prices in Central Indiana are still affordable.

What these rising rates means, however, is that potential homebuyers should think about searching for their new home and listing their current property soon, as there could be an increase in home-buying activity as people try to lock in low rates.

Of course, every situation is different, and you should never rush into selling or buying a home. But for those residents who are interested in learning more or beginning the process, contact me today and learn what deals you can find, and get up-to-date information on mortgage rates and trends.

How Much Can You Afford to Spend on that Perfect Home?

 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!