Jampacked back-to-back appointments, sale after sale after sale, bidding wars, and dramatic home price increases have marked our weekly schedules over the past two years. With the importance of homes grabbing the spotlight plus all-time low rates being offered during the height of the pandemic, the housing market has been nothing less than feverish.
But from a fast-running car, we are seeing signs of the brakes being tapped. With the rise in interest rates and buyers taking pause, there’s a small shift happening in the market. Despite this, if you are planning to embark on home buying and selling soon, we want to assure you—people are still selling homes, and people are still buying homes. There is no reason to worry at all. As your local real estate experts, it is our mission to walk with you in every change in season, in every shift and turn, to help you analyze the scenario, and make informed decisions.
First things first, it is not unusual to see a shift.
In fact, it happens all the time in real estate markets, whenever significant circumstances such as the increase or decrease of interest rates, drastic change in the general economy or in the supply and demand happen.
Second, it is important to look at the market from a local lens.
While a national perspective gives guidance, local markets can be a bit different at times. For this reason, reaching out to local real estate experts is crucial.
In Indiana, year-to-date sales are down by nearly 4% compared to 2021—but are still outpacing growth trends pre-COVID. Inventory has been gradually increasing with year-to-date available homes reaching 2% above 2021, giving buyers more options to look at. However, overall lack of supply continues to lead to home price increases, albeit at a slower pace. In fact, price gains slowed down for the fifth consecutive month this year, stirring more positive news for determined buyers. It’s a signal that prices are settling towards a more sustainable pace. Despite this, prices from January through July 2022 are still trending 14% more than last year’s figures—a sign that amid the decelerating rise in price, housing is still and always will be a valuable and great-wealth building investment.
We are entering a more balanced market.
Surging demand and low supply have played major roles in the game over the past two years, opening up incredible advantages for sellers. But as more homes are being listed this year, and the demand is pressed downward due to inflation and rising mortgage rates, the housing market is leaning towards a balance.
What does this mean for sellers?
The market transition may entail less offers, and fewer bidding wars in general. While sellers have gotten used to getting more than the asking price in the past, you need to be quick to adjust and price strategically—don’t forget to consult with an expert! Nonetheless, sellers will continue to benefit from rising prices. In terms of the duration of making a sale, it is possible that a listing’s time on the market will be a little longer. This is why partnering with a realtor who will offer topnotch marketing strategies is a critical step.
What does this mean for buyers?
We’ve seen increases, but interest rates are still historically low. With housing inventory climbing up, Hoosier homebuyers who have waited on the sidelines in the past due to limited inventory are now seeing greater chances to seize homes at potentially more affordable prices, and with less competition.
The bottom line
Despite the shift, home sales in Indiana remain strong. There are attractive opportunities and deals to be maximized—you just need to find an agent who will step up the game for you.
Fully knowing that it matters who you work with, especially during this time, the Regan + Ferguson Group stays on top of the local real estate market to offer superior experience and strategies for our clients, whether you’re a first-time buyer or a savvy seller.
Need more insights? Ready to start your home selling/buying journey? Contact the R + F team today.