brchixwing
Sharpshooter
Whereabouts are you looking? Not news but the demand situation is solid because job market has been strong and interest rates are still low (but fed lifting slowly).
The supply situation is likely tight around the $100-150K range because new builds have been focused on higher price points but the demand is still strong.
I have bought close to a dozen homes in Indy (for rental) in the past year, there is a huge urbanization trend, people are moving closer to the city center.
This makes a lot of the real estate near the city look like a bubble but its really a shift in preference, i.e. yuppies and empty nesters buying up fountain square flips.
The overall price situation is hot as you indicate from low inventory, but most people don't account for 3 major factors since the last recession
1) money printing 2) low interest rates (and now tax cuts) 3) large scale investors buying single family rentals
I can elaborate for hours but just figure all the governments in the world including ours have printed a ton of money like Germany did after WW1.
This will lead to rampant inflation some day, where people are much better off owning assets that appreciate with inflation, driving up demand.
Low interest rates have made it cheap & easy for creditworthy people and institutions to borrow money, driving up demand.
Institutions (wall street) and individual investors have been using single family rental properties as cash flowing investments, driving up demand.
(There are still many rentals you can buy in Indy that will return over 10%/year even after accounting for property management)
Correction will come when we see a left wing administration, and the US economy turn weaker relative to the other mature economies of the world.
Until then, the demand environment will be pretty strong in Indiana, companies are still moving here and hiring (now for tech jobs too).
Again there are always black swans, i.e. if we actually get into a serious trade war and Trump can't find middle ground with China.
The supply situation is likely tight around the $100-150K range because new builds have been focused on higher price points but the demand is still strong.
I have bought close to a dozen homes in Indy (for rental) in the past year, there is a huge urbanization trend, people are moving closer to the city center.
This makes a lot of the real estate near the city look like a bubble but its really a shift in preference, i.e. yuppies and empty nesters buying up fountain square flips.
The overall price situation is hot as you indicate from low inventory, but most people don't account for 3 major factors since the last recession
1) money printing 2) low interest rates (and now tax cuts) 3) large scale investors buying single family rentals
I can elaborate for hours but just figure all the governments in the world including ours have printed a ton of money like Germany did after WW1.
This will lead to rampant inflation some day, where people are much better off owning assets that appreciate with inflation, driving up demand.
Low interest rates have made it cheap & easy for creditworthy people and institutions to borrow money, driving up demand.
Institutions (wall street) and individual investors have been using single family rental properties as cash flowing investments, driving up demand.
(There are still many rentals you can buy in Indy that will return over 10%/year even after accounting for property management)
Correction will come when we see a left wing administration, and the US economy turn weaker relative to the other mature economies of the world.
Until then, the demand environment will be pretty strong in Indiana, companies are still moving here and hiring (now for tech jobs too).
Again there are always black swans, i.e. if we actually get into a serious trade war and Trump can't find middle ground with China.
My wife and I have been looking at houses. Nothing serious, just for fun. We’d like to find a larger house someday though. We have 2 baby boys now, and our 2 bedroom house is now feeling a little cramped.
I have seen $100,000 houses go for $150,000, within a couple days of being listed. It’s so crazy right now. My aunt, who is a realtor, told me that there are 10 houses for sale and 50 people looking to buy. House prices are going thru the roof. And she has sold a couple of houses the same day she listed them.
I have also been told that now isn’t a good time to buy anyway. The majority of the people that have bought recently will be under water because house prices will eventually drop. I dunno if that’s true, but surely this housing craze will end sometime, right?
As for us, we’ll probably try to get someone to come out and give us a price to add on. Or just buy bunk beds. I’m also rather fond of my low mortgage payment.