At the end of the first quarter, there were 664 foreclosures listed for sale in Central Indiana. That number was not a noticeable change from a year ago. However, It was just a third of the inventory available back in 2005, and less than half of 2010 levels. Foreclosures now make up less than one in twenty houses listed for sale, with them having the highest concentration level in Madison and Shelby Counties.
Overall, foreclosure sales were down 15% in Q1 versus the same time a year ago. Foreclosures sold for 87% of their original list price. Of course, many cut their asking price before they ultimately brought offers.
I get calls from a lot of people wanting to buy a fixer upper. They’re usually motivated by buying something on the cheap and then investing a good deal of themselves into the property to enhance its value. And that concept works— (drumroll….) when there is enough time and skill to get the work done AND enough money to buy the materials. (I can’t tell you how many houses I walk through where it’s obvious that the people had good intentions but just ran out of money.) It’s easy to do. Fixin’ up houses take chunk money. A hundered here and a hundred there can work for small stuff, but when it comes to buying furnances, roofs, siding, kitchen cabinets, appliances, carpet, hardwood flooring, etc., etc., etc. you need chunk money. and if you don’t have the cash on hand then the project stalls out or the cost gets put on credit cards. Neither strategy works and inevitably puts people in a real bind.
A far better solution is to start out with a 203K loan. The 203K is a government loan, a FHA product. It provides the funds to both buy a property and to fix it up. The total loan amount is capped at $295,550 and the required cash down payment is just 3.5% of the total. The money is parceled out as the work is being done. And the interest rate is (right now) somewhere around 3-4%. Now, that sure beats paying credit card interest rates or letting your project (and the home of your dreams) die a slow death.
Be smart- do it right! If you’d like to get all the details, call me.
The Metropolitan Board of Realtors just released numbers for the month of March and Quarter 1. As is customary, new listings have been coming onto the market as warmer weather stirs. While there were about 2800 new listings that came on board during both January and February, March saw nearly 4000 new for sale signs put in front yards across Central Indiana. Meanwhile, a good number of listings were taken off the market, thus resulting in no real inventory gain from January to March. It’s possible that some of those pulled from the market are merely taking a breather, and will reappear to plump up the inventory level just in time for the summer selling season. Future home buyers would certainly like for that to happen.
Sales have been increasing month by month this year, and are up 14% from the same time a year ago. Whether this momentum can be maintained or not- well, the proof will be in the pudding.
The median sales price (where half of all sales are either above or below) sits smack on $140,000 (up about 4% from a year ago). That’s generally good news for sellers.