Just like the weather, the real estate market in the Indianapolis metro area continues to be hot, hot, hot! In the month of June, closed sales were up 5.4% and for the 2nd Quarter, they were up 11.7% Pending sales also continue to outpace last year with 8.1% and 6.4% growth year over year for the month of June and 2nd Quarter respectively. What does this mean for you, our customers?
What does it mean for sellers?
The number of homes available in the market continues to be down compared to last year. Overall inventory for the Indianapolis market was down a whopping 13.3% in June! If you are looking to sell your home in the next 6 months to a year, you might want to consider accelerating your timeline to capitalize on the hot market. Since the number of quality listings is down, good homes that are priced correctly are selling in short order! Sellers who price correctly should prepare for showings to be steady from the day they go on the market until an offer is accepted. If an offer is accepted quickly, they should prepare to be out of their home in as little as 30-45 days after listing. With many quality listings, sellers are not only having their timelines accelerated, prices are also increasing. Median sales price is up 3.3% over the same quarter last year. Fewer available listings means a shorter time on the market and a better sales price for you!
What does it mean for buyers?
As we spoke about in our last update, since the number of listings are down and accepted offers are up, buyers must be decisive and act quickly! We make sure our buyers understand the current market conditions and need to get out to see a home as soon as possible if it is something they are interested in. Many times, waiting until the weekend to go look at homes is too late with these market conditions. Also, when it comes time to offer, buyers must be aggressive if this is a property they really want to purchase. We always encourage our buyers to make sure you are paying what you feel comfortable with, but if it is a home you really want we will advise you to come with your best offer rather than playing the counter offer game. In the time it takes the seller to consider your initial offer, they may be receiving other offers! Some buyers are concerned that they will overpay in a market such as this. One way this process is put in check is through the appraisal process. Upon getting an accepted offer, your lender will send out an appraiser to substantiate the value of the home. This is a nice check to protect you (and your lender) against paying a price for a home that comparable sales do not support.