Home Buyers and Sellers: Indianapolis-area Housing Market Booming
May 22nd, 2017
May 22nd, 2017
Are you looking to buy a home in the Indianapolis area? Home buyers should be aware that the Indy-area housing market is at an all-time high compared to two years ago, according to a recent article in The Indianapolis Star. The hottest areas for home buyers are Hamilton County, the suburbs, and the up-and-coming neighborhoods near Downtown Indianapolis. However, real estate listings are down. What does this mean for home buyers and sellers?
Home Buyers – Expect a Competitive Housing Market
Back in 2015, the housing market began to experience an uptick due to job growth in Indianapolis area, low interest rates, and a loosening of lending standards. According to the MIBOR Realtor Association, during the first quarter of 2017, median sales prices were up 7.1% for the 13-county metro region to $152,000. Additionally, closed sales were up 8.7% with 6,712 homes sold.
Due to today’s fast-paced housing market, home buyers can expect:
- To move quickly in the home-buying process. Therefore, have your financing in place from the get-go.
- Fewer homes on the market, so you won’t have as many options to choose from. Hamilton County only has about a 2.9-month supply of homes for sale – meaning supply is low.
- Higher home prices. If you’re looking for a home in Hamilton County, it’s currently the most desirable area with the highest home prices. Homes under $250,000 are moving quickly while homes over $250,000 to $1 million are moving at a good pace. Whereas, middle-income families are having a hard time buying homes in Carmel. If you want a home for under $150,000 in Carmel, it doesn’t exist. Therefore, if you want a more affordable home, you will need to look further out.
- A harder time finding a new-build home in more affluent suburbs for less than $300,000. Homes for less than $200,000 in more affluent areas are almost unheard of now.
- To make a quick home-buying decision. Homes are selling within days, if not hours, of coming on market.
- A frenzied bidding war. Often, home buyers must pay more for a home than the listing price to have their offer accepted. Therefore, you should expect to come in high.
- A difficult time buying a home if you make your offer contingent on selling your own home. Home sellers want buyers who can close now. Therefore, many buyers are selling their own homes and renting while they look for a new house.
Home Sellers – Your Home Value May Be at a Historic High
If you’re an Indianapolis-area homeowner and you’re planning to sell your home within the next 6 months, here are some things you can expect:
- Real estate firms approaching you to sell your home, especially in desirable areas.
- Home buyers demanding updated kitchens and bathrooms with new appliances and higher-end features such as backsplashes, quartz or granite countertops and walk-in showers with double shower heads.
- Your home value may be higher than it has been in the past. If you live in Hamilton County, the median sales price is up 12.6% to $250,000. Even in Marion County, the median sales price is up 6.4% to $125,000.
- You may sell your home within days – or even hours – of listing it. Therefore, you need to have your own affairs in order, so you can move quickly if your house sells fast.
- Several bids on your home. If your home is in Hamilton County, you could receive an unheard of 96.3% of your original asking price – the highest in the metro area. Other hot areas with the higher offers include Hancock and Hendricks counties. Even in Marion County, sellers near Downtown Indianapolis are getting 93.6% of their original asking price.
- Cash offers, especially if your house fails to appraise for the home’s negotiated price after a bidding war.
- If you’re a home flipper, are that properties in and near Downtown Indianapolis are hot right now.
Unfortunately, no one knows how long this robust housing market will last in the Indianapolis area. Therefore, if you’re planning to sell your home, now is the time to do it.
Need a Home Mortgage?
If you’re a home buyer in the Indy area, you’ll likely need to get a home loan. A mortgage broker, like the experts at Grandview Lending, can help you find the best terms and rates on a new mortgage. At Grandview Lending, we work with a variety of lenders to help you get the best mortgage solution based on your specific needs. Therefore, you don’t have to spend your time and energy calling around to various lenders to get quotes. We’ll do it for you. At Grandview Lending, we pledge to help you make the best possible decision for you and your family when it comes to your home loan. Contact us today at 866.690.4920.
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