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While most large cities experienced a significant decline in home sales in 2007, Central Indiana posted its fifth best year ever! I bet you didn't read that in the Indianapolis Star. We were down 9.9% from 2006 but our Region closed on more than 27,900 homes in 2007. Our local market was challenged in 2007 by a number of economic factors that affected consumer confidence. Our steady job market, low cost of living, low mortgage rates, and flourishing local economy will help us ride this sagging but steady market, into a more positive home market that should show signs of improvement by mid-2008.

Our predictions:

We will see an early strengthening of the local real estate market in 2008 and a 1-2% increase in sales over 2007.

Residential real estate home inventories will continue to decline and bring back a balance in home values...good news for Sellers.

Indianapolis will come out of this foreclosure and mortgage crisis faster than most cities helped along by strong local market conditions and should hover around 6% mortgage rates.

New Homes will continue to be the best value in town with local Builders competing fiercly to retain their market share. We will continue to see more builder incentives to Buyers, and less speculative building in 2008.

The average sales price of homes will vary depending on location and demand. We will see some appreciation of homes in areas where the inventory has been reduced. The 2.1% decline in appreciation last year was not significant and shows a market that is holding its value. I think we could see 2-4% appreciation in some areas in 2008.

Remember that 50% of this real estate market is comprised of Buyers! With values and mortgage rates down across the country...now is the ideal time to buy.   

Have a great day and go buy a home! Call me if I can help.

Jeff

You hear a lot of negative news about the Indianapolis and surrounding nine County real estate market lately. It is true that our market sold approximately 10% fewer homes last year than in 2006. This reduction of homes came off of one of our best years ever. We are still ahead of where we were in most years past. The negative news has influenced and negatively affected consumer confidence. If Buyers and Sellers can hear the good news in the market, we'll be fine. Remember: economists have predicted ten of the last two recessions!

We have a good supply of buyers looking for homes...we just have too many homes on the market right now. Our showings were up for the 4th Quarter of 2007 and so far in 2008. Sellers can expect close to their list price if their home is market ready...and more importantly market priced. New Home Builders have discounted their homes excessively in my opinion. This is a large part of the negative appreciation we are reading about. There are market segments in our area that are still showing signs of appreciation.

Is this a good time to buy a home? Absolutely! You have low interest rates, a strong inventory of homes to choose from, and home values that have decades of steady & constant growth. Throw in the tax benefits and this is still the best long term investment we can make.Home ownership is still the American Dream. Be wise but get in the game...Buy now.