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In the general Indianapolis area, it seems like the right time to sell a house. If you own one that requires repairs, or maybe in even less than good condition, there are plenty of offers out there. You might end up with a buyer that is desperate or willing to pay all cash. How lucky you are! Even if it doesn’t seem like it! With rents increasing in suburban and rural areas, many urban areas saw rental costs decrease as people left densely populated areas.
It has never been easier to turn a home into quick cash. But, there are a few things to consider before starting the buying (or selling) process. That’s why everyone is either miserable or elated right now – there really doesn’t seem to be an in-between.
Some people use the term “bubble” to describe the housing market, but Nobel Prize-winning economist and JPMorgan Chase CEO Jamie Dimon aren’t expecting a repeat of the last crash. There is a temptation to write off the housing bubble as a simple financial disaster, even though it’s widely believed that many people suffered psychological trauma from it. Millennial and Gen-X buyers, especially those seeking to buy their first homes, are really feeling the pinch – keeping them in local rentals for much longer than anticipated.
Changes between the mid-2000s and the current housing market are significant, and they have had a significant impact on the supply of homes and the profitability of homebuilders. Combining record-high prices and low inventory has caused homebuilders to raise prices even higher than they originally planned. According to a new analysis, home prices in Indianapolis (especially in nearby Hamilton and Boone counties) have grown at a fast pace over the past year. The data from John Burns Real Estate Consulting shows that prices are expected to continue increasing at a clip of around 12% in 2019.
A current influx of well-qualified buyers is putting housing analysts in uncharted territory. The winning bidders are typically younger and more affluent, and they can afford the high prices. This is good news for investors and second-home buyers, who are seeing their prices go up significantly. According to real estate consultant Rick Palacios, Jr., there are no signs that housing will crash anytime soon. Home prices are expected to moderate from robust growth to healthy growth over the next couple of years.
If you’re still on the fence on whether to buy a home, all hope isn’t lost. Housing is probably going to peak in 2021, according to Palacios. The insanity will start to slowly ebb as more supply comes online. If you are thinking about buying a home, then it’s important to know that the past trends suggest that it is still a bad idea to enter the market now. The housing market is expected to straighten out eventually. This will mean less stress and less risk involved, so waiting might not be a terrible idea if you’re in the market.
My best advice is to not try to time the market. It is not going to work for everyone – no matter what. But while you wait, this is a perfect opportunity to consider your financial situation. What’s your budget? What neighborhoods are you interested in? What are your favorite things to do in Indy? Any particular school system? New builds? What do you want? It’s always good to be prepared with all of the documentation that lenders and real estate agents request. And, if you need to keep renting, you’ve already got that task complete!
TELL ME IN THE COMMENTS: Are you attempting to buy in this crazy Indiana market? Or keeping it real in a rental at the moment? Tell me!