So, the Indianapolis housing market statistics for May 2022 were just released and here's the splash:
- The market STILL favors sellers, to the tune of 102.4% of ask received across MIBOR'S 16 county, 110-township service area.
- Median sales price STILL continues to rise, up a staggering 12% from this time last year.
- Price per square foot has STILL risen some 16.4% from May 2021 and is STILL climbing!
- Active inventory has STILL risen, almost 30% from a year ago.
But Miriam...haven't you heard the recent headlines?
Surely this will cause the housing market to crash!
Here's my response:
Last time we had a housing meltdown, it was primarily due to lax mortgage lending practices, i.e. If you could fog a mirror, you could get a mortgage.
These days, many buyers are conservative when it comes to buying, often paying cash outright for homes here in Indy, ponying up hefty down-payments or bridging any differences in apprsaial price with funds from their own savings.
We've lost some 10 years of construction--this, coupled with 24 months of a global pandemic and all that goes with it--has affected the buying and selling behavior of the general public.
I mean, it's hard to think about moving when you're busy sheltering in place.
Take another look at this chart:
I made some, uh, "edits" for you.
This is a straight-up scarcity issue, meaning there just aren't enough houses to go around. Incredibly, we get a front-row seat as we see the law of supply and demand at play. While the headlines that say there's a recession coming, it's not likely to cause the huge dips in values that we saw some 15 years ago.
How this will unfold is STILL anyone's guess.
I don't have all the answers, but scarcity is scarcity.
Until that issue is solved, this will continue to be a seller's market.
Have another perspective?