If you’re a prospective homebuyer, seller, or investor, peaking costs and high demand have probably left you wondering – what does the future hold for the housing market? While markets can be unpredictable, a few factors may help you better understand the home sales market ahead.
A CLOSER LOOK AT THE DATA
Economists are predicting that the market as a whole is genuinely on the brink of transforming itself into a more positive space. There are several reasons for this sunny outlook. Borrowing costs have likely reached their peak and have now started to decrease. In fact, most analysts suggest that they will only ease a bit more as the year progresses. A reduction in borrowing rates can only spell good news.
Locally, Central Indiana has seen lagging housing construction behind growing demand. That deficit is as high as 13% in some counties around the metro area, according to one study. Fortunately, though, the number of building permits is slowly increasing, and most analysts suggest those rates are on track to resolve in the next four years.
Beyond the stronger mortgage rates and some inventory progress, home prices in the greater Indianapolis area average out to be nearly 20% less than the national average of $385,000. It makes sense, then, that this is a market where buyers are going to be interested in making a purchase in the near future. Even the National Association of Realtors believes recovery is on the horizon, suggesting there may be as much as a 13.5% increase in existing home sales and a 19% increase in new home sales by the time the year ends.
WHAT IT MIGHT MEAN FOR YOU AND ME
As we look ahead toward the coming months, it’s time to start bringing some positivity to the Greater Indianapolis home sales market. Demand for housing will continue to stay strong, yet prices will be a bit more moderate than they are across the nation. Connect with us to support building achievable housing in the area and make homeownership a reality for many more.
