Interest rates drop again

Thinking of refinancing or even buying a home? Now is probably going to be the time to do it. Even though we have heard many "experts" talk about the federal government artifically lowering them to 4.5%, don't count on it. There is too much debt currently outstanding for that to happen. Most experts agree that interest rates will continue to hover around 5-5.25% for a little while and then maybe trend up slightly. Interest rates are at near historical lows and sellers are giving great deals still. If you are contemplating a refinance or a purchase, this might be the window of opportunity for which you are looking.

Merry Christmas & Happy New Year!!

Buyers--Come Out, Come Out Wherever You Are!

We need buyers in this market. Interest rates just dropped again today to around 5.50%, which is unbelievable! Inventory is high and sellers are very motivated. In order to get through this housing and economic market slump, we need for houses to start selling again. Short of guaranteeing this, housing WILL come back and be a great investment once more. It is the basis of our economy and always will be.

Mortgage money is still plentiful. As long as you have 3% for a down payment, a steady job, and a respectable debt ratio, you can get a loan. First-time buyers are sitting by the sidelines in numbers never before seen. Generation Y is an even larger generation than the Boomers. We are going to see a huge boom in the housing market, but the question is how long will we have to wait. If you know a buyer who is thinking about buying a home, encourage him/her to talk with a real estate professional and a lender. For every first-time buyer who buys a home, 6-7 additional homes will be sold.

So, if you are thinking about becoming a homeowner, talk with your real estate consultant and see if now truly is the right time for you. My guess is that it will be.

What Just Happened?

Just when we start to see a bright spot in the housing market the stock market goes in the dump and we are getting pretty dim reports about the economy as well. What gives? While the stock market around the globe has taken it on the chin lately, there are still some silver linings out there. Houses are STILL selling. That's right, there is still a housing market out there. Depending on where you live, it is in a different state of recovery, but Indianapolis is still looking good.

Dr. Lawrence Yun, Chief Economist of the National Association of REALTORS (NAR) in a presentation in Carmel, IN a couple of weeks ago shared with real estate agents that he, Alan Greenspan and over 800 economists around the US feel the housing market will have begun its recovery by early 2009, if not sooner. Indianapolis' Pending Home Sales Index actually is up for the 2nd straight month and there is evidence of much pent up demand as buyers are waiting on the sidelines for even better deals and the bottoming out of the housing market. Many signs are pointing to Indy being at the bottom now or just pulling out of it.

As long as you have decent credit (650+), 3 1/2% to put down and aren't drowning in debt, there is plenty of mortgage money out there. For FHA, your down payment can even be in the form of a gift letter from a blood relative. Sellers are giving great deals and inventory is going down. Builders are seeing the fewest new home starts in over 60 years. That really helps our housing market.

Dr. Yun predicts that within the next few years there will actually be a shortage of homes on the market turning the tide, once again to a seller's market and homeowners seeing gains in equity once again. If you are a homeowner, are thinking about buying a home or moving up and are planning on staying in your home for at least 5 years, this could be one of the best times in history to buy a home. Interest rates are still very low (6.5% for a 30-year conventional, conforming loan) and sellers are anxious to sell. Take advantage of this historic occasion and if you are considering buying a home, this could be one of the last times to get such favorable conditions--especially from builders who are giving away unbelievable incentives.

Visit www.Welcome2Indy.com for more informationa and resources

End in Sight for Housing Slump?

While no one has a crystal ball, there are many indications that the housing slump MAY be nearing its useful life. I have seen showings pick up on listings. I've had several buyers write acceptable contracts on homes. Inventory of houses is going down and so are days on market. John Tucillo a nationally-recognized authority in the real estate market and former National Association of REALTORS chief economist in a speaking engagement for the Indiana Association of REALTORS last Wednesday said that he thought that by the end of this year, Indianapolis should be coming out of the housing slump along with much of the rest of the country. That is great news for homeowners, buyers, and real estate agents.

Along with this prediction, as well as lowering interest rates and the national election, we should have a fairly busy winter. Oddly enough, every time there is a presidential election, the housing market slows considerably in the weeks leading up to it, but then picks up right after the winner is announced. This could end up being a decent 4th quarter.

Visit www.Welcome2Indy.com for some great resources in the housing market.

Where Are The Buyers?

This is a question I am hearing a lot lately. Sellers are wondering where the buyer traffic is and why they aren't getting many showings. Real estate offices around the city are significantly slower than usual at this time of the year. Agents who work with buyers just aren't seeing many of them.

I ask, "Where are you, buyers?" Interest rates are around 6.5% for a 30-year fixed-rate mortgage. Historically, that is an excellent rate as the 40-year average is over 8.0%. If you are a first-time buyer, NOW is the time to buy. The market is not going to get much better than it is currently. It can't. Jump in with both feet and take advantage of this outstanding buyer's market before it is too late.

If you have a house to sell and are upgrading, more than likely you will get a better deal than you will have to give, further making sense to jump into the market. The real estate market isn't for everyone right now, but with good, solid, objective advice from a good real estate consultant, you can decide if it is the right time for you and, if so, jump in and take advantage of this once in a lifetime real estate market. For information on the market and to assist you with your research, visit www.Welcome2Indy.com.

Good luck!!!

Economy update

Unless you have been living under a rock for the past 2+ years you know the majority of the real estate market has been going through several challenges lately. In central Indiana alone our market has depreciated 11.3%. Not every neighborhood has seen this kind of depreciation-some have and some haven't. That is why it is critical to speak with a real estate professional to determine exactly what your neighborhood has seen as far as market conditions.

We aren't out of this yet, but the predictions I have seen recently is that the re-sale market is rebounding in the 3rd quarter of this year to as late as the 2nd quarter of next year. New homes are expected to rebound late 2009 or early 2010. Bottom line, with the low interest rates of around 6% and the high inventory of homes in central Indiana (11,000+), there is no better time than now to buy a home. There is a 9.7 month inventory of homes right now. The adage of, "buy low and sell high" clearly applies to buynig a home, too.

Visit our website at www.Welcome2Indy.com for lots of tools to help with your decision-making process and best wishes!

Indianapolis Real Estate Update

Well, the legislature finally got something right.  Effective with the 2009, pay 2010 taxes our property tax cap will be in place at 1% of the home's gross assessed valuation.  That will save homeowners potentially thousands of dollars each year in taxes and allow many to stay in their home.  As a result of the property tax cut, we have a 1% increase in our sales tax to a 7% total sales tax rate.  While this isn't a perfect option, it will give the greatest good, in my opinion to people who can be more discretionary in their spending.

This will make many more areas of Indianapolis, especially older homes much more affordable and help to make these homes more attractive to potential buyers.

This is an incredible time to buy a home with near record-low interest rates, lots of inventory, motivated sellers and extremely well-staged homes.  The phrase, "buy low, sell high" is very applicable here.  If you are even considering buying a home, now is the time to do it as the market is expected to start to balance out the 3rd quarter of this year.

For more real estate information, please visit www.Welcome2Indy.com

Happy house hunting!!

Negotiating with Builders

OK, we have all heard that builders are hurting right now and that isn't far from the truth. Some are hurting more than others, to be sure. What are your options if you are looking to build a new home or are considering buying a "spec" home (one that is already built or is about finished)? First of all, enlist the help of a knowledgeable real estate agent who is familiar with the building process and builders in the area. There are many nuances with each builder and knowing these could save you (or cost you) a lot of money.

First of all, find out whent the fiscal year of the builder ends, or when their sales quarter ends. They will be under more pressure to sell a home at these times than any other. Enlisting the help of an agent will show the builder you are serious and won't cost you any more. The commission the agent makes comes out of the builer's marketing budget and has nothing to do with the price of the home you are purchasing. You will NOT be able to save more money by bypassing the real estate agent.

Be willing to close quickly. Time is money for builders. A quick close is extremely important to builders. Equally important to builders is buyers NOT making the purchase of their next home contingent upon the sale of their existing home. If you can swing these items you are ahead already.

Most builders will pay your closing costs, but ONLY if you use their lender and title company. Be prepared for some road bumps by using their lender, however this can save you several thousands of dollars.

Next, no matter what the sales rep says, make an offer lower than the price of the home. They will have to take it to the VP of Sales, but he/she will take a look at their bottom-line and tell you whether or not they can accept your terms.

The worst that can happen is they will say no, but this is what we can do. Either way, you are ahead.

Check out our website at www.Welcome2Indy.com for other resources or contact me with any questions. Gook luck!!

The Real Estate Market is Back!!

There is no doubt the spring real estate market has made an early appearance!! Yea!! Buyers are surfacing again and sellers are coming out in droves to list their houses. With interest rates at near record lows, inventories at record highs, and pent-up demand, there is no better time to buy a house than in 2008! That's right, this is YOUR year if you are looking to buy a home in or around Indy.

Sellers are still giving great deals and if you have a house to sell as well and are looking to buy another house, you will most likely come out okay since you will probably GET a better deal than you will have to GIVE, especially if you are upsizing.

If you have decent credit, banks and investors still want to lend you their money, so that is not an issue. We should have a resolution to the tax situation in Marion County in the next few months and most economists are predicting 2008 to be the bottoming out of this correction. Indy is predicted to come out of this the 2nd fastest in the nation.

So, get out there, buy a house and get a great deal. This is probably your last chance for a while.