Indianapolis real estate has taken a hard hit from the economic crisis. Hoosiers are struggling to stay in their homes and ward off foreclosure, and market prices are declining due to the low volume of housing sales. This means that there are now more empty houses for sale at lower costs. That could be good news for anyone browsing the housing market, yet there is still significant decline in home buying compared to last year.
According to the Metropolitan Indianapolis Board of Realtors (MIBOR), there has been a 22 percent decline in housing sales volume, and a 15 percent decline in the number of homes sold on average in the past 12 months.
In this economic recession, home brokers are struggling to place proper values on housing. The average sale price of Indianapolis real estate has declined 8 percent from this time last year. All over Indianapolis, home sellers are cashing out for short sales, getting less money than what their house could be worth in a better economic time. Why? People simply cannot afford to stay in their homes anymore.
The national mortgage crisis is beginning to trickle down to Americans everywhere, and the Indianapolis community is not immune to the downturn. In recent months C.P. Morgan, the city’s most abundant home builder, closed its doors. Many former homeowners are opting for rentals and apartments, and some are relocating to downtown Indianapolis in order to increase savings normally spent on commuting from the suburbs.
National foreclosure rates continue to increase to record highs, but it appears that Indiana isn’t doing so bad right now. According to the real estate research company RealtyTrac, Indiana’s housing market is showing signs of improvement. Since March 2009, there has been a 2 percent decline in the amount of home foreclosures all over the state.
There is no question about why fewer people are buying houses these days. Several aspects of Indianapolis business have been slammed by the economic crisis, but none more than the real estate business. Frugal spending and smart money saving are skills that have become a must in this hard economic time. Still, financial advisers agree that this is one of the best times to invest in real estate, if buyers can afford to.