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Purchasing in the Indianapolis area? Click here for full MLS access
In 2015, we had a solid real estate market. We experienced a bit of a seller's market, as inventory has been low and demand for homes has remained high. This has resulted in multiple offer situations for sellers, which is always great news for people looking to get a great value for their home. However, pending sales are trending down year-over-year, which means we're starting to get market stabilization.
As we head into 2016, expect to see a market that still favors sellers. By about midyear, though, we're expecting the market to level off and become neutral. A thing to keep an eye on is interest rates -- the Federal Reserve has indicated that interest rates might rise as early as Q1 next year, which will greatly affect the buying power of consumers.
If you're thinking about making your move, now is the time to get off the fence and look for something to buy. Rates are still at historic lows, so if you want to lock in a very affordable rate on your mortgage, now is the time to act!
Recently, we saw an article in which a handful of builders were interviewed about the Hamilton County housing marketplace. They said that, from here on out, it's going to be difficult to build a home for $200,000. One builder even said that it's going to be almost impossible to build anything under $175,000! If you would have told me that 10 years ago I would have called you crazy, but the way the market has picked up and the increases in material costs have made building from scratch a more expensive process.
If you have any questions about where our market is heading, please don't hesitate to reach out to us. We would love to hear from you!
