Housing Market in Central Indiana
Central Indiana Housing Market
If you have been keeping tabs on the housing market, you know it’s been a CRAZY start to 2021. We can’t believe the year is half over already! Can you?
The biggest question we have been getting is the old “How’s the market?”
WOW, if you only knew…
How’s the Housing Market?
- The inventory of existing homes available for sale has continued to be a challenge for home shoppers. It’s even decreased from the historic lows in some areas. Less than a months worth of inventory of homes is definitely not keeping up with the demand.
- Today’s inventory of existing homes for sale is 60% less than this time last year – at the beginning of the pandemic.
- Builders also had a boom in 2020 but are now fighting their own battle against rising prices of building materials. Some new homes are costing a lot more than just a few months ago due to supply not keeping up with demand.
Predictions vs Reality
National Experts had predicted that new home builders would help offset the low existing homes for sale inventory. However, the pandemic has wreaked havoc with the building materials industry. Builders can’t get everything they need and/or they are paying premium prices for supplies that were a lot more affordable and easier to find a few months ago.
That equals the same problem we have in the existing home inventory – high demand, low supply. Yup, for the consumer that means prices are rising for building new homes.
Needless to say, it looks like the new home building inventory will not help out as much as expected due to rising prices of materials.
Is there an end in site to this unprecedented Seller’s Market?
Well, yes, it’s not sustainable. As the old saying goes “What goes up, must come down.” However, no one has a crystal ball to find out when it will change. Next month, next quarter, next year? No one knows for sure…
Buying a home is still attractive to the buyers out there and for good reason. With the FED keeping the borrowing rate for banks to bank lending low to stave off inflation – (some experts expect this through the end of 2021) – and then mortgage rates still at historic lows thanks to the Fed, the opportunity to lock in at a low 30 year rate is quite tempting for home shoppers.
We continue to monitor the situation locally and help both our buyers and sellers with outside-the-box strategies and being proactive. If you are in the market to sell, you really should set your Strategy Appointment with us TODAY. Don’t miss out on buying or selling because you are fearful. We can and will guide you!