Even though numbers are still down for home sales across the Indianapolis real estate market, experts are reporting optimism for the real estate climate overall. With the lure of the $8000 First-time Indianapolis Home Buyer Tax Credit and decreasing home prices, buyers have increasingly been snatching up Indianapolis homes for sale. This is even more the case in other markets across the country.
Buyers closing on more properties means prices are becoming increasingly stable, which is a good indicator of a real estate market recovery. While the Indianapolis market is still feeling a slip according to an August, 2009 Indianapolis home sales report, Midwest cities outside Indiana like Chicago and Cleveland showed an increase in prices, according to a Case-Shiller index. While cities like San Francisco and Denver also saw an increase, the markets in cities like New York City and Charlotte flattened.
Still, even while being flat, experts feel a real estate market recovery is on the horizon because we are no longer heading downward in some areas. In fact, a study of 20 major US cities revealed a flat market rather than down-turned. Popular opinion reflects that perhaps we have seen the bottom.
There is much debate, however, about whether or not we are really seeing significant indicators of a real estate market recovery.
Even though certain reliable indexes are showing that existing home sales increased recently for three consecutive months and new homes sales gained the most significant percentage in June than its seen in almost ten years, there are skeptics.
Hardest-hit cities saw a decrease in the value of their homes by as much as 50 percent. This coupled with unemployment continuing to rise, the expiration of the first-time home buyer credit, expected rises in future foreclosures and an increase in interest rates is causing some to say that we have not seen the worst of it yet.
Still, there is an optimistic anticipation looming that we are on our way out of the crisis. The feeling is that our country’s recession is behind us and that we are seeing a recovering economy. We need to focus on the future and not continue lamenting over our losses. Easier said than done for some still feeling the loss of their home’s value. Still, homeownership does involve ups and downs, and while we certainly can say we have experienced a down, everyone is ready for the upward times.
Hope for an upward turn drives buyers back into the market. Interestingly, the initial buyers to return, however, have seemingly been investors. Numbers show that second quarter buyers who occupied the homes they purchased was almost 3 percent less than the previous quarter.
This number is making analysts wonder if the consumption of inventory isn’t just a switch in ownership since investors are flipping properties back to the market or renting them out.
Also, analysts argue that while this index is indicative of an upswing, only major cities in urban populated areas were analyzed and not necessarily reflective of the climate for the entire nation.
Numbers released by Case-Shiller also reported that the price of homes had decreased by approximately 17 percent when stacked up against statistics from a year earlier. While this number is high, the rate of decline is slowing which is positive overall.
Again, popular opinion among Indianapolis REALTORS® is that gains we are seeing can be attributed partially to the $8000 first-time home buyer credit. Because of this, the National Association of REALTORS® is lobbying in Congress for a $15,000 tax credit, not only for new buyers but for any buyer who closes on a home.