While those looking for homes in today’s Indianapolis real estate market are still nervous about the state of the economy in Indiana, across the nation things are looking up. So even though our stock market still may be shaky, this improvement in our housing market bodes well for the United States economy overall because it tends to be the backbone of our financial state.
Overall, the number of pending homes continues to increase which is indicative of our real estate market improving nationwide. For July, 2009, the numbers were up 3.2% as reported by the National Association of REALTORS®. This makes the sixth month in a row to show an increase. Since mid-2007, this now makes the highest index for pending sales which is even up 12% from the previous year.
The pending numbers are indicators of our real estate market improving nationwide because these sales forecast closings that will happen within a few short months.
Two components are lending to this increase in pending home sales:
Homes are more affordable. Due to currently experiencing a buyers’ market and because, unfortunately, some owners are having to lower the prices of their homes because of competition or because they are in distress, home prices have fallen. This combined with lower mortgage rates have made homes more attainable for today’s buyers who are viewing homes with their REALTORS®. Buyers are writing more deals on homes and this increases the statistics for pending home sales.
The $8000 First-time Homebuyer Tax Credit. Buyers of Indianapolis homes for sale and those around the nation who close before December 1, 2009, will enjoy receiving $8000 on their taxes. This isn’t a write off but an actual $8000 credit toward what you will receive back on your taxes. Homes must be closed by the December 1 cutoff, however, so if you’re thinking about buying a home, the time to move is now.
Another indicator of our real estate market improving nationwide is Freddie Mac’s price index of homes recently released which indicated that prices are up across the nation by approximately 2.7%.
More evidence is reported by Clear Capital whose price index of homes indicated that prices were up as much as 7.3% during the month of August, 2009. Clear Capital assimilates information from scores of postal codes and smaller communities across the nation.
Markets struggling even more than Indianapolis, such as Phoenix, have witnessed even better returns. This part of Arizona has seen home sales increase as much as 28% and home sale prices were creeping up as well reporting being up approximately 2% in July. Also good news for this area of the country is that the number of distressed home sales is at its lowest point since last fall.
Buyers looking to finance their homes are facing good news right now too with 30-year fixed loan rates decreasing to approximately 5.2% recently according to a national survey and 15-year fixed rates hovering around 4.6%.
Experts are also seeing other indicators that perhaps the country’s recession is on its way to being over. Third quarter consumer spending is up as well as manufacturing, and layoffs are declining as well. All of these are indicators that we are moving in the right direction.