Indiana: On the Verge of a Housing Shortage (June 2106)by: Chuck Fugate/Broker/Compass Realtors
Housing inventory continues to decline in Indiana. The Indiana Association of Realtors (IAR) reports the state currently has 4.9 months of inventory on the market. Statewide, 11,516 new listings entered the market, and 8,933 were sold in May 2016. The average statewide sales price was $143,000 (up 4.4% over the same period last year). 95.9% of all listings that sold in May received full asking price or greater.
The southern Indiana counties of Clark, Floyd, and Harrison are experiencing sharper declines in housing inventory compared to overall state averages. It is likely that the cities of Jeffersonville, Clarksville, Sellersburg, New Albany, and metro Louisville will experience decade high price increases if this trend continues.
The housing bubble burst of 2008 sent a ripple effect (or tidal waves) of financial chaos throughout every industry in America, and everyone felt the pinch. Now, just eight years later, the real estate market is thriving once again. And nowhere is the recovery more apparent than right here in the lovely Midwest -- and Indiana in particular!
Indiana home sales skyrocketed nearly 11% in April (compared to the previous year). Additional year-over-year comparisons show promise, as well: median sales price increased 4.1%, pending sales are up 2.5%, and list price sales rose 1 percentage point to a whopping 95%.
The best news for sellers? There are precious few homes for sale going into these busy summer months. If you’re considering listing your home for sale, now is the time! Buyers are motivated and open houses are generating tons of traffic. Many sellers are receiving multiple offers above list price. The Indiana Association of Realtors expects this home shortage to last throughout the summer months.
The best news for buyers? Interest rates have plummeted to a three-year low of 3.6 percent! Lenders like Wells Fargo are also beginning to (slightly) loosen the vice grip they’ve had on borrowing requirements. While exceptional credit is still a must-have, down payments are starting to creep lower and loan terms are becoming more and more simplified. With stats like these, 2008 is beginning to feel like ancient history.
If you’re ready to list your home or buy...