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.....