Curious About the Overall Housing Situation

Replies to This Discussion

Permalink Reply by Michelle Morris on February 23, 2008 at 9:05am

I think that the market is going to pick back up this year. If you think of a curve or wave, I think we are currently on the bottom of the wave, poised for a rebound. I'm not the only one who thinks so, as many real estate articles agree. As far as Indiana foreclosures, in previous years we have consistently ranked in the top 3 states for foreclosures, but last year, we came in at number 18!

▶ Reply to This

Permalink Reply by Bruce LaDuke on February 24, 2008 at 2:44pm

Thanks Michelle,

I'm wondering though...did Indiana go down in foreclosures, or did other states go up?

▶ Reply to This

Permalink Reply by Michelle Morris on February 24, 2008 at 2:51pm

Hmm, that I don't know, perhaps a bit of both!

▶ Reply to This

Permalink Reply by Bruce LaDuke on February 24, 2008 at 3:54pm

Thanks!!

▶ Reply to This

Permalink Reply by Phil Lande on February 27, 2008 at 2:20pm

I for one do not believe that the "downward spiral" will last too long. Current market trends are showing that there is a new life to the market. Yes, the home values have diminished to some degree, but with the rates at an all time low in conjunction with this modified prices...more 1st time buyers are finding a meca of possibilities that were not available before.

Indiana was the #1 Forclosure capital of the United States, but we have declined over the past months, and we are not even in the top 10. Indiana's prices were never that of the coasts, and as a result our problems were minimal in comparison.

One thing that must be noted: REAL ESTATE is a Market. Just like stock, oil, and food....prices go up and down in conjunction with the economy of the country and the supply and demand within the area.

▶ Reply to This

Permalink Reply by Kurt Allen on June 19, 2008 at 11:09pm

You have posed a great question that needs to be answered. Unfortunately, the media is not going to provide both sides or bring out the real facts concerning the local market. As a realtor, I find myself completely frustrated with the lack of care in report.

First of all let me report that the Indianapolis Market is in much better shape than the rest of the country. While there are pockets within the community that have been impacted by the sub-prime market, rest assured, most communities have seen little or no effect. If you happen to live in a growing community like Carmel, Zionsville or parts of Fishers, those homes are increasing in value.

For those homes located in Marion County, the property tax situation has created more problems than the national housing slump. The recent changes in the tax law will help these home owners; however, there were many homes significantly under access. The only way to completely clean up the property tax mess is appointing a highly skilled an trained individual that manages the entire county and we move away from elected township accessors.

In summary, home buyers are more cautious about their home purchase these days. Previously, home buyers were willing to take a gamble on a home and new they home would appraise for more. Buyer's are now looking for homes that are in good condition, clean carpet and neutral colored walls. HGTV has helped home owners express their house in color and flair. However, most buyers do not like or have furniture that matches the current home owners color pallete.

An industry report predicted Indianapolis to emerge out of the housing slump in 2009 following Dallas, TX. In addition, the national election is not helping the housing market either. Most home owners are holding off buying another home until after then election.

If I can be of any further assistance, please let me know.

▶ Reply to This

Permalink Reply by Michael Laird on October 9, 2009 at 1:18pm

Foreclosure. My opinion is the ranking for Indiana is not the issue, a measuring stick it is but we should be concerned about why foreclosurers are happening. Back in 1976, my family was in the title business. A well run business that had been in business since 1879. When I asked my father about how many foreclosure cases we did title work on each year he said maybe two (2). Since 2002 to date the average number of foreclosures, based on file names of "MF" is 216 per year. That number is much to high in my opinion. That probably is not all of them as they could have a different file name and some have been dismissed and also refiled. Who is at fault. Again my opinion, just about everyone connected with the real estate business. Appraisers (the ones not performing high quality work), Realtors who are not providing guidance to buyers. Lenders who are not stringent in processing applicants. Parents who have not instilled in their children the values that are necessary. Borrowers who don't have the values necessary and those that don't care. Borrowers that have been told you can afford a payment of "X" dollars and getting a loan with payments of "X" rather than placing a limit on themselves of maybe 75 or 80 percent of "X". Remember about being able to afford the home. You can buy anything you want as long as it's WITHIN YOUR ABILITY TO PAY FOR IT.
As for how long this will last. There has been improvement in sales, the stock market has had some gains. Lenders are now being looked at closely so the number of sales will probably remain slow while employment is down. My opinion is, it will take at least 5 years after the recession for the market to get back to appreciation. The foreclosure numbers in the county I reside in were high in 2002, with 170 cases, there are 178 cases in 2009 and the year isn't over. Not much has changed and when you look at 2002 to date, there were a lot of foreclosures going on long before the so called BUBBLE burst.

▶ Reply to This

Permalink Reply by Michael Laird on November 16, 2009 at 5:30am

Personally, I feel that a recovery in housing in Indiana will be slow, Three to five years of slower activity is my prediction. Our Sunday paper had 3 sheriff sale notices in it and I don't remember them ever being in a Sunday paper before. Locally, the foreclosure rate has not declined.

RESPA and truth in lending has tightened up. Lenders seem to be stricter and taking a more conservative approach to loans. A new HUD closing statement will be in use starting in 2010. The HUD didn't need changed. just used properly. I'm told that appraisers are now on a rotational basis and that the lender no longer can request a particular one. One can't deny that they are the same ones that were appraising the homes before the bubble burst. While new rules and regulations mean well, I don't place much faith in them. There were plenty of rules, regs and laws but this housing mess still happened. What needs to happen is to pay attention procedures that insure that the loan is a good one. Check the real estate out, lender should visit it. Ban out of state loans for homes. Look over the entire appraisal for red flags rather than "did it appraise". This year I got to look over an appraisal that was used for a loan several years ago. It had all 3 comps as INFERIOR to the SUBJECT and each comp was ADJUSTED for the exact same amount, a PLUS of $8,000. How do 3 homes with different ages, styles, acreages, garages etc. have the exact same ADJUSTMENT. Here is details on the subject and 1 comp. Subjects was age was around 105 years, wood framed, had small lot 40' x 165', front steps were 12 feet from the pavement of a state road, garage was a 1 car detached garage with dirt floor, termite damage, had not been used in years. One of the comps was a brick ranch approximately 50 years old, with 1.5 acres, a 2 car attached garage, it was on a county road and sat quite a bit further back from the road. How the comp could be INFERIOR to the SUBJECT is a mystery to me.

New buyers need to be more conservative. Loans are for 15, 20, 25 and 30 years. Owners need to stay away from 2nd and 3rd mortgages, consentrate on just getting the original loan paid off.

Just one more thing. If we get back to BASICS and COMMON SENSE, housing and other industries will straighten themselves out.

▶ Reply to This