I'm tired of the horse bleep. No, really, I have lost my patience for those in my business that keep preaching roses and lollipops. The real headline in the Indianapolis real estate market is that it truly is an incredible time to buy a home.
Let me say it again. It truly is an incredible time to purchase a home.
Where I have issue with my brethren in the real estate industry is that we should stop entirely with the 'well, it's getting better' horse bleep. It is not getting better right now. It will get better eventually. It may bottom out later this year. It will begin to slowly crawl off the carpet next year. We are not in a market that suffers like Southern California, Florida, Phoenix-Scottsdale, Las Vegas and others that are losing 50% or more of their value in the last 18 months. We are in market that has lost value and units sold and STILL has huge property tax issues....most specifically Marion County.
Sit down for this one....Marion County in many places has gotten worse with the new reassessment of the new reassessment of residential property taxes. Case in point...three bedroom, one bath home in Arden on Indy's north side will be paying $4400 year this year plus the additional tax bill of about $1600 that's a 'make good' from 2007. The same home in Carmel will pay $1560 this year based on square footage. The Arden home will come down to $3100 in 2009 and $2250 in 2010 but that will do nothing to help home values for at least the next two years. The collateral damage is that the perception of tax problems will plague ALL homes in Washington Township for some time to come.
Here are the most recent numbers for April 2007 to April 2008:
Homes pended in central Indiana April 2007: 2735
Homes pended in central Indiana April 2008: 2076
Differential -23.85%
Washington Twp. Marion County Closed sales April 2007: 208
Washington Twp. Marion County Closed sales April 2008: 147
Differential: -29.4%
Average S.P. Washington Twp. Marion County 4/2007: $224,649
Average S.P. Washington Twp. Marion County 4/2008: $181,866
Differential: -$42,743
The numbers go on and on like this with only Boone and Hamilton Counties actually seeing price increases but with units sold in decline.
Be it Indianapolis real estate values, Hamilton County real estate or any of the contiguous counties, it is an incredible time to buy real estate. It will be one that we may not see again for many years on the buyer's side. It will be one that many will look back on as being one of the best investment times of their lives. That doesn't mean there isn't pain. It simply means for those who must sell, reality is a very large pill to swallow and will require difficult decisions. Failure to do so will mean a 'for sale'sign could still be in the future of those who can't make the tough decisions. It could mean that in May of 2009, that 'for sale' sign is still in front of their property. Or for some, it could and will mean worse.
Questions? Comments? Donations? Greg@GregCooper.com or 317.848.GREG (4734)
