Sales in January continued at a very strong pace, up 8% over last January and pacing the year-over-year totals up 8% as well. (Those are strong, healthy numbers, btw.) On the other end however, new listings continued to lag far behind, down 9% from last January. This unlikely combination of forces (surging sales and lagging listings) just doesn’t make much sense. I mean, if sales are growing AND prices are rising (up 8% over a year ago) then one would think more homeowners would be putting For Sale signs in their front yards. But not! The inventory of houses available to buyers is at 3.8 months; which is darn low. All of that is good news for homeowners wanting to sell their houses.
If you’d like to see what houses are selling for in your neck of the woods, just ask! Talk soon, Bob
“I work harder to make good things happen!!”
Back in 2007, banks made 3 out of every 4 home mortgage. As the financial crisis deepened, they became just about the only source for mortgage loans— that despite the fact their lending practices were at the root of the cause of the financial crisis. Go figure?!
However, now the wor has turned. Banks now account for just 1 out of every 2 mortgages, and we’re starting to see some of the big banks exit the mortgage biz altogether. That’s fine with me. Good riddance! Historically, big banks have been the stingiest and least friendly lenders to work with.
Today, we’re seeing more and more credit unions and especially mortgage companies making loans so that people can buy houses. I think that’s great news for consumers. Mortgage companies are more consumer-oriented, more creative, willing to figure out ways to make more loans, and just downright friendlier and easier to work with. I mean, what’s not to like? Hopefully this trend continues.
If you have questions about mortgage financing, please be sure to ask. I spent 17 years in those trenches and still have a strong network to call upon. Talk soon, Bob
Well, it’s not first time home buyers. That cohort is usually the driver of a strong housing market. They feed the bottom of the pyramid, buying someone else’s starter home so they can move up. However, only 33% of all home buyers in the central Indiana market in 2015 were first time home buyers. That was the lowest that cohort has been since 1987! Analysts attribute that to heavier student loan debt, not enough breadwinner jobs, and an aversion to use of credit among millennials.
Ok, let’s talk about who the average buyer in central Indiana was this past year. They were a married couples, 39 years old, and making $77,800 a year. This was about five years younger than what was seen nationally; and that could probably be accounted for by the fact that our prices are so much more affordable than most other places.
Two out of three buyers were married couples, followed by 15% single females, 9% single males, and 7% unmarried couples. 11% of all homes purchased were done so to include multi-generational living arrangements.
Need a plan to sell your house? Call me… I work harder to make good things happen!!