Have you ever played that party game where you blow up a balloon...and just kept blowing and blowing, to see how big the balloon will get?
That's a little like our current housing market situation. Take a look at these stats--active inventory is down slightly from the month prior, and down a whopping 61% from this time last year.
Let that sink in: active inventory is DOWN over 61% from this time last year, when we were in the throes of a global pandemic.
To say that we are in a scarcity market is an understatement. Demand is crazy high, and I'm seeing some spurious practices lately, with buyers waiving the appraisal and inspection protections afforded to them in the Indiana Association of Realtors (IAR) Purchase Agreement just to have their offer accepted. At my last open house, when I asked a potential buyer how her search was going, she broke into tears. "I've written at least seven offers," she said, "and none of them have been accepted."
Adding gas to this uncontrollable dumpster fire is increased competition from institutional investors, who are looking to turn single-family homes in the Indianapolis metro area into cash-producing assets for their portfolios. Typically, these companies offer cash for homes, where a typical hardworking Hoosier buyer requires mortgage financing. I'm not against making money, but it would be nice if we had a prosperous city full of community pride and financial security for our citizens who, say, benefit financially from owning their homes. I guess if you want to give your equity away to an asset manager who sees your address/future wealth/investment portfolio/hopes/dreams as a line item on their firm's quarterly earnings report, well, that's up to you...
...but that's another topic for another time.
If you are a seller, here is what this means: conditions heavily favor you.
Let me repeat that, louder for those in the back:
IF YOU ARE A SELLER, CONDITIONS HEAVILY FAVOR YOU.
Here's how this breaks down:
If you are worried about losing your home to foreclosure, sell your home now.
If you want to upgrade to a brand-new home (think new construction), sell your home now.
If you want to downsize, sell your home now.
If you want to tap out some of the equity in your home and acquire a second home (hello, Florida!) or an investment property, sell your home now.
And like the party game where that balloon keeps blowing up...well, that balloon will eventually burst.
The same is true for the current housing market. When this will end is anyone's guess.
But it ain't popped yet.
If you are thinking about making a move, the time is now.
If you would like your own personalized stats report--or if you are severely vexed hedge fund manager--drop me a line.
My contact info is below.
Real Estate Broker/Owner, Odegard Real Estate Group
United Realty Indianapolis
1425 East 82nd Street, Suite 200
Indianapolis, IN 46240
text/mobile: (317) 220-5397