UPDATE: Will they really go down? Take a look at some potential revaluations of properties in the Indianapolis area after tax reassessment. Meanwhile the squabbling continues between our politicians as to what exactly will be done to ease the tax burden. It's times like these I'd like to slap Pat Bauer's toupe back into the '70's where both it and his management style came from.

Meanwhile......
I'm as mad as hell and I'm not gonna take it anymore.

Some blog posts are nice. Most of the time, I'm nice. Most of the time I'm positive. This time I'm neither positive or nice. This post is not nice. Frankly I'm angry. Angry because every day we get to explain to people why their homes are not worth as much as they were two years ago. I'm angry today for a number of other reasons which are best documented after you spend a few moments with Howard Beale.



Peter Finch won an Oscar in 1976 for his portrayal of Beale, an angry television anchor. For me it was worth a watch because it captivates my feelings quite succinctly about our current mortgage/credit/financial/housing/etc. crisis that we've put ourselves squarely in the middle of.

Personally, I'm angry because we've handed out millions of zero down mortgages in neighborhoods where hundreds of similar floor planned track homes sit side by side.

I'm angry because we've taught an entire generation of potential and current home buyers you don't need to have any money to own a home.

I'm angry because my new Australian Shepherd puppy Bailey could probably get a VISA card right now with the dozens of applications we get in the mail every year.

I'm angry because although the real estate community has been screaming about challenges in the housing market over the last year, it's taken until now for the federal reserve to wake up and smell the crisis.

I'm angry because in my community (Indianapolis) we've built over 100,000 NEW homes since 1998. That's one NEW home for every 3 preexisting homes in our metro area. Can you say oversupply?

I'm angry because it will take us years to get out of the mess we've gotten ourselves into.

The only things real estate related that I'm not angry about today is that I have a number of clients that are absolutely stealing property right now in their purchases. At least in a few years, I'll be able to give them good news about the appreciation they're recognizing in the real estate they're buying today.

Contact: Greg@gregcooper.com OR 317-848-GREG (4734)

Diamonds In The Rough

Given the position of the overall market and where it's gone over the past 12 months, there are now many properties that have become the cliche for an undervalued asset. What was once $329,00 is now $269,900. From $949,900 (appraised at $1,200,000) to $799,900 on prestigous North Meridian Street, no less. As the line goes.....'if I had a million dollars...' I'd either be buying a precious metal or Indianapolis real estate. It's very nearly gotten to the point where buying a home in the current interest rate climate is less of a decision than an eventuality for those truly analyzing their housing options. Savy home owners toying with the idea of moving up now have an added sense of urgency as they watch their potential for buying up a full price point become a nearly neutral revenue move. While this mindset has not become a panacea for frustrated sellers looking to liquidate an asset, it will eventually be the cure for a vastly over supplied market.

There are gathering clouds on the horizon that may still be cause for concern throughout the Spring season. Come March of 2008, increasingly tightened FANNIE MAE and FREDDIE MAC lending standards due in part from the sub prime troubles will also affect the current market. First time home buyers will be facing a whole new game this year compared to 12 months ago. Reflecting on the more current history, the overall market data for the 11 county metro area has still been sluggish with roughly a 30% decline in units of real estate sold in January of '08 compared to that of January of '07. Pricing strategy is now comparable whether one is selling a home at $200,000 or $1,000,000. Considering that 9.8% of all listed homes are selling during their initial 90 day marketing period, a seller must now be priced in the most aggressive 20% of their compeitors to have a chance at entering escrow. Every day we still hear about how a homeowner feels their property should draw more than the 32 homes they're competing against because of some minor value feature that most of the buying public doesn't really care all that much about.

The summary of where we are is this: You CAN make a great buy right now but to get there you must be prepared to price your current property at a true value to sell and move forward. We'd all like to buy low and sell high but only Warren Buffet seems to manage that. Last time I checked, he wasn't buying much property in our area.

A brief moment of levity.....
A client bought a new home and the broker wanted to send flowers for the occasion.They arrived at the home and the owner read the card; it said "Rest in Peace". The owner was angry and called the florist to complain. After he had told the florist of the obvious mistake and how angry he was, the florist said. "Sir, I'm really sorry for the mistake, but rather than getting angry you should imagine this: somewhere there is a funeral taking place today, and they have flowers with a note saying, "Congratulations on your new home".

Questions...comments....contact....greg@gregcooper.com or 317.848.GREG (4734)

It's not brain surgery.....well ok, maybe it is.
Pricing a home to get to the closing table in this market is no easy task. It requires putting your emotion aside and simply analyzing the market if you want to sell a home in the Indianapolis area. Here are a few blunt thoughts on how to approach and survive the process....




This week for no extra charge, I've offered a couple of points on staging your home as you prepare to put it on the market. Believe it or not, buyers actually frown on homes that have the life size snow globe still out front in February.



Interest rates have been down, up and then down again over the past couple of weeks. Inflation fears sparked the upward trend while the pressure of the reduction of the prime rate by the Federal reserve has worked to hold rates in check. Current 30 year fixed rates sit at 5.74% for a 30 year loan. Please contact your lending institution for rates based on the program that is appropriate for you.

On Monday, February 11th we'll take an in depth look at the sales numbers for the first month of 2008 and see where we're headed as we begin the new year. It's getting better, right? It has to be getting better.....I'm sure it's getting better....no doubt the numbers have risen and we are starting to see an up turn in the market! Right. We'll see on Monday.

Comments....questions....contact.....Greg@GregCooper.com or 317.848.GREG(4734)