A Quick Look into the 2013 Indianapolis Real Estate Market

Indianapolis Real Estate The pulse is strengthening not only in real estate nationally but also right here in Central Indiana. We are seeing great signs that our housing recovery is well on its way! Here are 10 indicators that show 2013 is going to be a great year for Real Estate! 

  1. We have cleaned up a big mess in the market area since 2007. Foreclosures and short sales have declined dramatically. 
  2. Demand is starting to come out of the wood work. Buyers are done sitting by the sidelines and waiting. Local Realtors are excited to see multiple offer situations on homes, their phones ringing with inquiries from new buyers and an abundance of open house traffic. 
  3. Supply of homes on the market has decreased drastically in many areas of Central Indiana. Look at Hamilton County for example; there are roughly 1700 homes on the market currently while last year at the end of January we had 2743 homes for sale. In Carmel there are slightly over 450 homes for sale compared to January 2012 there were approximately 730.  
  4. Home Prices are always positively impacted when we see a balancing of supply & demand. We are no longer seeing declining prices and sellers in many areas can look forward to seeing gains in their homes value in 2013! 
  5. Dirt is moving that hasn't moved in a long time. Builder’s appetites are coming back. The see the shortage of supply and are ready to fill the gaps! As an example, drive by 146th and River Road in Carmel. In the past 4 years we have seen virtually no movement up until the past 60 days. RYLAND HOMES & Wedgewood Building Company are gearing up to start building new homes in the Legacy Community!  
  6. Renters are EXCITED about Buying! Rents have eclipsed homeownership costs in many areas of Central Indiana. Those homeowners that were faced with having to do a short sale 2 -5 years ago are done renting. Their credit has recovered, they are on more stable ground and they are back in the market to take advantage of the low interest rates. They are telling us renting is not for them!  
  7. Market correction will bring slight hiccups. We will likely see some appraisal issues arising with transactions. Appraisers use past sales to support new purchase prices and as prices increase there is a natural lag time. Over the past several years buyers looked to the sellers to take care of appraisal short falls, we are likely to now see buyers becoming part of the solution.
  8. Demographics. Population growth always works in the housing industry's favor. Nationally 1.5 M new family entities are formed per year and overall population is growing at 3M/year. When we take a look at Indiana and specifically Metro Indianapolis; this area will be responsible for 62 percent of the state total growth between now and 2030. Hamilton, Hendricks, Hancock, Boone & Johnson are slated to be the states 5 fastest growing communities. http://www.ibrc.indiana.edu/ibr/2012/spring/article1.html
     
  9. Economic Development and Job Creation needs to be a continuous focus of our state and city leaders. Corporate Relocation has picked up over the past 12 months and transferees are excited about what Metropolitan Indianapolis has to offer. Our housing market is dependent on keeping and gaining good paying jobs! 
  10. Financing.... Don't anticipate the loosening of any lending guidelines. High credit scores and down payments along with stringent qualifying guidelines are here to stay. However, Interest rates will continue to work in buyers favor.