Mornin', peeps!
The Metropolitan Indianapolis Board of Realtors (MIBOR) just released the latest market stats and, well, it's like this:
Our local housing market is kind of like the coffee at a 24 hour diner.
Still hot.
Still strong.
Still keepin' everybody up at night.
*Actual picture of the author holding a hot cup of' housing data.
*Not really.
The big question is this: is the market still strong? Meaning, will rising interest rates tank the market?
Tank the market? No.
Affect the market? Yes.
Yes, rising interest rates will curtail the ability for some buyers to buy at their preferred price point. No, it will not curtail demand, which will remain strong. Remember, we lost 10 years of building due to the housing meltdown of 2008. There's been a shortage of starter homes since 2017.
This time, there will be no dip that causes prices to descend into the abyss. This is a scarcity driven market that will take a decade, at least, from which to recover.
Rising interest rates don't help; rather, they will continue to force buyers to rent until the day comes that they've saved enough to qualify for a mortgage at their price point.
Put simply, supply cannot keep up with demand.
I mean, check these stats:
Average sales price (ASP) is $300,000 in the Indy Metro Area, with an average of five DOM and percentage of ask hovering at 101.9%.
Compare this to July 2020, where average sales price was $225,000 and/or July 2021, where we were at $260,000 ASP and 101.6% of ask received.
Don't kid yourself: prices skyrocketed during the pandemic and are here to stay.
Will we see the incredible equitable gains of the past 24 months?
We don't think so, with rising interest rates and all, but that's not the only issue.
Supply chain interruptions, cost of building materials increasing, expense of building permits all play a part in this circus of crazy.
Here's my best advice:
Stay the course, make a plan and if you want to talk further, please call me.
I am dedicated to moving your dreams forward and more stubborn than a pack mule.
Part of my charm, really.
With abundant gratitude, particularly to those saving for their forever home,
Miriam
