What is the outlook for our local 2016 real estate market? As an agent, I don’t have a crystal ball, but I do have numbers and studies of market experts providing indicators to make our best guess of the direction of the local real estate market for this year.
Last year was more of a Seller’s Market — meaning the demand for homes was usually higher than the inventory of homes for sale. We move into 2016 with the same low inventory and this results in multiple offers on lots of the homes in some areas and the final sales prices being closer to or above asking price.
It was not and is not an all out Seller’s Market, Seller’s cannot name their price, remember, a home’s value is determined by what someone will pay for it – listing a $200,000 home for $300,000 will not get you $300,000, even with low inventory. With the tightening of federal regulations, lenders being pickier and appraisers being closely scrutinized, the likelihood of a repeat of past history is not there.
The Federal Reserve has not raised the cost of borrowing in nine years. The economy is picking up and experts predict they are likely to begin gradually raising the interest rates. Most agree that sometime in the first quarter of 2016, we will see the increase start. Rates are still at historic lows at the moment so buying now is a smart move if you are on the fence…and you should call me to do it!
Still renting? It is actually cheaper to buy than rent in most areas of the country including ours. Rental rates are increasing at a fast rate. Concerned about your credit score? Have limited funds? or just afraid to find out? You’ll never know until you try, I have several lender partners that I am happy to have you talk to…remember, all discovered is confidential and they will not share your financial information, but are always happy to help you create a plan to work through the issues and get you ready to buy a home! . Wouldn’t you love to stop throwing money away on rent?
After 10 to 15 years of a wild ride in the real estate market, analysts are predicting that “normal” is returning slowly but surely. Distressed (bank owned, shortsales, forclosure) property sales are finally dropping instead of being a huge part of the housing market. New construction is on the rise again and home prices are rising at at a more normal rate.
2016 should be another busy year in the Indianapolis market. If you have been thinking of buying or selling, now is the time to do it. Take advantage of the lower interest rates if you are a buyer. Sellers jump in the market while inventory is still low. Just let me know what I can do to help!