For those of you who insist on clinging to your newspaper, broadcast and glossy magazine marketing to find your way, here's a little reality check from the front......

Where are the marketing dollars being spent to promote your property? Big splashy ads in the Sunday paper are not what they're cracked up to be. Marketing guru Gary Vaynerchuk has a few suggestions on the perception versus reality of what actually drives results in Today's New World Of Real Estate....and a LOT of other places.






Want to see how our federal officials are squandering our 'bailout/rescue' money? Mark Cuban has played a role in creating BailoutSleuth.com to watch the dollars roll out into the wind. One can only look at this every so often for fear of being totally sick to one's stomach!

Dr. Ruth Wants To Move To Indiana.

So does Dr. Phil, Dr. Drew and Dr. Bombay. Hulk Hogan is very high on the Hoosier state as is a very famous equine and his owner (Wilburrrrrrr). You see every day we get requests for information from very famous people who inquire about various homes available in Indiana. It's not that the noted sex therapist, TV host, MTV therapist, professional wrestler or 60's icon are actually thinking of moving here.They are simply regular people who use the identiy of a famous person as they request information about one of the more higher profile residences we routinely market. Some just want good old fashioned general home information without all the encumbrances that dealing with a broker can entail. In summary they want anonymity. For those who want a free ticket in to the former Hilbert Estate please don't email me this: "Oh I swear Greg, what are you thinking by not taking Robin and I through there? Maybe she wouldn't have left old Dr. Phil if you had...." Trust us....we've heard it all before. From professional female wrestlers with the WWE to various television personalities to dead animals from the '60's, Alex, we've heard stories you cannot imagine.
It's not that we're being unkind, mind you. There are numerous legal, time constraint, never ending tour guide issues that are associated with that property as well as Reggie Miller's Geist area home. There are simply not enough hours in a day, week, month or career to do that.
You may be one of those who actually wants the information on a home or piece of ground and you simply want to be anonymous. That we understand. If at the end of the day, that's what you wish to accomplish, just give us a blind email box and we'll get you exactly what you need, no questions asked. We will be happy to treat you with total respect and
confidentiality if you would please do the same on our end. While the tenor of this post is trite, the reality isn't. In this challenging market, there are THOUSANDS of scam artists or worse who are preying on people's fears and desperation who would do harm to us or one of our clients if we weren't vigilant. Regrettably I was witness to a situation where a seller actually took his own life out of that desperation this year because of the horrid, intentional behavior of a scam artist acting as a buyer. In the end please just shoot straight with us and we'll respond in kind. It will provide with a much more positive environment for all of us, including Oprah, whose IM I'm receiving right now.

Sellers - here's your sign.

In part two of here's your sign, I'll share a bit of data, a dash of reality and a cup full of philosophy all mixed with a hideous amount of cliche. If you haven't suffered an alliterative dry heave yet, read on. First it's the sellers turn to digest reality.

In the previous post of here's your sign, we looked at the stocks of national home builders and projected forward into 2009. Given past performance, it appears we may well be headed for a housing bottom shortly with a potential recovery cycle moving forward next year. I can already hear the giddy squeals of home sellers across America. "If we can just hold out, we can get more for our home!"

Wrong. Wrong. Wrong.

Any seller who adopts that mind set will probably cost themselves tens of thousands of dollars rather than reaping any positive reward. In anticipating a possible beginning to the recovery some time in 2009, we are hoping against a mountain of bad geopolitical possibilities that we're right.

If Iran gets testy, if Russia decides to take back another former Soviet state, if oil goes on an upward rampage, if our new president inplements some new policy that further quashes our economy.....all bets are off.

If our already fragile banking system takes any more severe hits, if too many of builders either custom or track get overly aggressive in adding inventory, if interest rates trek higher.....all bets are off.

Of course these are all national and international issues that don't even begin to tackle the local problems that plague the Indianapolis area such as the property tax issue that won't fully diminish until 2010 for Marion County. Add in changing business environments and ever evolving home buyer tastes and there are still plenty of cold water to throw on a recovery.

In short there are a multitude of factors that could change the path of any recovery over night. If you have to sell or if you want to take advantage of great buying opportunities as a 'move up' homeowner, then the selling equation has NOT CHANGED. You must still be incredibly aggressive in pricing your property to have any chance of getting it sold. Being clueless because you still think YOUR HOME is the one that will defy the odds and sell despite the ridiculous inventory will not get you across the finish line. Get you home priced aggressively NOW or risk spending another winter on the sidelines without a sale.

Every day we talk to sellers that think they just need a Realtor that just pushes a little harder despite a 60 month supply of homes in their price point. Those are the homes that will burn another 365 days on the market for buyers to beat them up with next year. Price is everything. Learn it. Live it. Believe it.....or be a Chicago Cubs fan and 'wait 'til next year.'

Part 3 of Here's Your Sign for home buyers wil be online Friday September 5!

Questions? Comments? Donations? Greg@GregCooper.com or 317.848.GREG (4734)

Who are your buyers?

All right sellers....it's your day here on America's Real Estate channel.

With all of the confusion about today's home buyers, let's try and quantify who exactly a 'buyer' is in Today's New World Of Real Estate.

Today's buyers are thoughtful, contemplative and VERY cynical. They have been looking at homes for some time and can't seem to find the urgency to make a decision. They trudge through homes for weeks repeatedly finding what would be a good choice only to walk away from every possibility because 'surely we can find a bank owned home for 50 cents on the dollar.' (Pssssst.....here's a hint: You can't. Banks are horrendously backlogged on foreclosed inventory and have no idea what their properties are worth. Odds are slim you'll get them to come to your price and you'll have to wait weeks for them to actually respond to your offer while you miss other good choices).

Today's buyers are not concerned about interest rates, comps or your investment as a seller. 'Hey, time's on our side,' as I was told last week by a prospective buyer....and you know what? They're right. Come Labor Day in Indiana and in many real estate markets across the country there's going to be a sense of desperation in the air. Sellers are going to wake up on September 2nd and realize they could be staring at another winter of paying the bills with no promise that next April things will be better.

Regrettably my trade association, the National Association of Realtors, has wrecked their credibility this year. They and their chief economists stood with stone tablets high on the hill this past January and proclaimed:

'The down market will turn this summer!' 'We are near the bottom.' 'Things will improve in the last half of 2008.' 'Stay calm....all is well!'

When they stole the line from the Titanic's cellist it was obvious they were too clueless to know better. What they have done is a tremendous disservice to home sellers across the country. They created false hope instead of motivating sellers to get their homes priced agressively enough to sell in the most challenging market in 40 years. That's right...this is worse than the late '70's.

Things will improve eventually.
My best guess is we will see some stabilization next Spring with better times ahead in 2010 but NOT before the current foreclosure and inventory mess get cleaned up by natural market forces.

If inflation caused by the high fuel prices pushes the mortgage rates up significantly, then ALL BETS ARE OFF FOR A HOUSING RECOVERY. I would also reiterate what I have stated countless times on this blog: Those that buy during this time will absolutely look back on it as one of the best investments they're ever made.

Those that keep wandering the path from house to house will still be wondering when the bottom will arrive long after values have turned and are heading back up.

Which one will you end up being?

Questions? Comments? Donations? Greg@GregCooper.com or 317.848.GREG (4734)

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)

Potpurri and 'wagging the dog' in Today's New World Of Real Estate.

A random collection of Real Estate 'potpurri' is up for today's post.

Right now it's the 'Wag the Dog' Theory when it comes to the current state of the housing industry. Think about a dog chasing a car or for our purposes, the News Media and home sellers reacting to the housing market. No matter how fast the dog runs, it will never catch the car. The dog will never slow the car down. And, the dog will never bite a moving tire. What must the dog be thinking? In parallel, the media will continue to report on any and all bad news about real estate. The consumers will always react to that news. Buyers get more conservative. Sellers will slowly adjust prices accordingly in a group, never really getting ahead of their 'competitors' and never really catching or slowing down that 'car.' The media drives the market down psychogically and then the market declines only for the media to do it all again in a couple of weeks. The media (tail) wagging the dog (market).

Today, many sellers are running after the market, the same way dogs chase vehicles. What are these sellers thinking? Their home is the only castle for sale? Buyers will love the scent of their lilac bushes so much that it will temporarily cause them to forget the competition? Is it possible the smell of fresh baked bread will cause a buyer to pay yesterday's price in today's market?

In my opinion, it is imperative for a seller to price their property 10% below market in order to sell promptly and avoid being left in the long line of expired listings. It may be an election year, but it will be a long wait for the inventory levels to decrease to a balanced market. By suggesting a seller has an overpriced property, the real estate agent runs the risk of being the messenger that gets shot. Courageous agents tell the truth. Cowardly agents hope the overpriced property will generate sign or ad calls while the seller reduces the price and stigmatizes the property with additional days on the market. The next time you see a dog chasing a car, hopefully, it will remind you of the futility of chasing a declining real estate market.

Painful.... is the term I would use to describe the current level of bank owned properties. In Carmel, 271 are on the market, Lawrence Township over 600, Pike over 850 and on and on and on. Remeber every bank owned selling at .60 cents on the dollar affects the entire market.

Over night interest rates are fairly steady at 5.78% for a standard 30 year fixed. The qualifications have changed dramatically for every type of loan and are much more stringent. Check with your lender before getting too far down your buying road and make certain you have a mortage rep you can trust. Liar's poker means nothing in the lending and home buying world. They can promise you anything...delivering is another matter entirely.

From Mama Carolla's to Bub's. Midwest Living hits the Monon Trail.

In the May/June edition of Midwest Living, Donna Segal and her husband bike from Broad Ripple north along the 16 mile expanse of the Monon Trail and ruin my diet with Mistro Mare from Mama Carolla's,
cookies from Rene's Bakery and a full frontal view of The Big Ugly burger from Bub's, among other things. It's a wonderful piece that maps the trail from 54th street north to Main Street in Carmel where Bub's, Bazeaux and Ferrin's Fruit Winnery all sit within a short block. Touting a million Monon users a year, this is a great piece on our city and region that appears on a national scope. I think the over/under on weight gain just from reading the piece is 5 pounds.


Builder's numbers from Indianapolis continue to slide with the pace for new homes to be right at 4500 built in 2008, down 60% from the annual average just 3 years ago. Meanwhile the local housing stats are grim but with some faint flickers of light down the tunnel. Local sales of preexisting homes are off anywhere from 10%to 40% depending upon which geography you're in with some micro price points suffering more than others. The entire market is razor thin right now with there being little logic as to what sells and how. The general rule of thumb is that unique sells as long as it hits the highest demand for the market. Great houses sell in most cases. Good houses sit - unless they're priced in an incredibly aggressive manner. First time home buyers should be out in droves but they're not for several reasons. They are still hesitant because of all of the bad press and they're still uncertain because of how tight the lending standards have become in the last 60 days. The easy money of the past 15 years is gone. Right now we're essentially in a risk based lending world, with credit scores, income and down payment driving what a prospective buyer can obtain in the way of financing. The ability and experience of the Mortgage agent is EVERYTHING in the pursuit of a home purchase right now.

The day is coming when listing a home for sale will mean much more than a local MLS posting. There are multiple national platforms that are battling for that brand position and if I had to lay money down, I'd say Zillow will emerge eventually as the leader. Zillow allows anyone to post a home for sale and in some cases post a 'hypothetical' home for sale so that potential sellers can see what demand there may be for their property. Of all national real estate hits, Realtor.com still commands about 9% of the initial search hits but Zillow is growing at over 4% while Realtor.com's numbers are shrinking. Will that make all Realtors obsolete? In a word, no. The future will require Brokers to be vastly skilled in the practice of analysis and presentation rather than simply just spooning out proprietary information as has been the case in the past. Those who don't, won't surivive. Those who master these tools will flourish and be highly sought after.

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

Taking Stock(dale). Where are we? The American economy feels a bit like that phrase uttered by Ross Perot's running mate, Admiral James Stockdale during his vice presidential debate a number of years ago.

"Who Am I? Why am I here? How did I get here"?

Contradictions abound as to where we actually are right now. Oil prices are skyrocketing due to demand (by the way with China putting 2500 NEW vehicles on the road every day, don't expect that to get better anytime soon). Consumer confidence has reached it's worst point in more than a decade and banks and major lending institutions are being watched daily for some stress point that could lead to a failure. Recession? Recession? RECESSION? (he says in Jim Mora like amazement). Of course we're in a recession. We don't need two quarters of documented history to tell us that. Yet despite all of that the stock market seems to have stabilized over the past week or so. While I don't agree with the overall observation that mortgage rates are historically low, many do feel that's the case. NOTE: In my mind, far too many people have 5.0%+- mortgages obtained in the '04-'05 years to think 6.0% is a 'good deal.'

While the credit crunch has lead to significantly more stringent guidelines for getting a mortgage, don't think anyone with a pulse couldn't get a VISA card right now. I think even this guy would qualify today:

While the unsecured credit market has become a dead man's party at this moment in history, that too should tighten some as lenders take a pounding this year from defaults on bank cards and the like. Frankly that couldn't come soon enough. It is beyond ridiculous how easy it is to get unsecured credit given how easy it is to wipe it out and start over. It's also a major contributor to identify theft, another problem plaguing the 'good credit' market.


So where does that leave us in the housing market? The summary version is that I still believe, as I have for months, that those who buy homes in our current environment over the long haul, will look at it as one of the best investments of their lives. The cost of building new product will never be less than it is today. If you're a seller, forget trying to understand the market. It's not about price point, meaning you're better off at $250K than $800K. What's selling today is unique.

Well perhaps not quite this unique but unique none the less.

By my definition what qualifies as unique in Today's New World Of Real Estate is a home that fits the perfect need of an active and motivated buyer in the market place. Sound simple? It's not. There aren't that many of those active and motivated buyers out there. If you are one of those, try and avoid this pitfall: Don't think when you find the home that fits your wish list you are going to offer .60 on the dollar and buy it. The overall market has already forced that property into a price contraction. If it hadn't, you wouldn't be looking at it.

When will it all come back? Oh that's easy. When new construction grinds to a complete hault so that current inventories are absorbed and employment and wage growth occur, thus reinvigorating demand to the point where it exceeds supply. Pretty simple stuff and economically sound....and no if you're wondering I didn't write it but I agree wholeheartedly. The time is coming when we will see prices begin to rise but in the meantime, don't believe everything you read about how horrid it is out there. There are challenges but the cycle will turn.

Questions? Comments? Donations? Greg@GregCooper.com or 317.848.GREG

A great commercial for Indy, taking care of the mother ship and a National MLS....

A bit of positive in all of the negative news we've had lately about our economy. Local recording artist Jon McLaughlin has a release out titled Indiana which he's graciously allowed the Indianapolis Chamber of Commerce to use in their marketing via the web. You can view the video by going to the Chamber of Commerce web site.

We would also encourage you to support Jon's work at his home page as well. I've heard the song 'For You From Me' about four times and it's already stuck in my head. Thanks Jon for such a great piece of work and the opportunity for our state to be presented in such a good way!

While I'm making a rare foray into music, here's another one for you. My friend Jim Swinson's alter ego is
Pamilco Joe, an environmentally friendly musician from North Carolina that has worked tirelessly educating kids about taking care of the world we live in. His CD's play every night in our house (I can sing them in my sleep) and are a great investment if you spend any time around children. Jim and his better half, Clearwater Flow have played multiple times at the White House and the Smithsonian Zoo. He and his multi talented band are on their 2008 World Tour right now performing at schools, festivals and gatherings spreading the word.

National MLS?
Real Estate site Zillow has begun the inevitable process of forming a national MLS by signing on their first client in Connecticut yesterday. All homes for sale in the state of Connecticut will be on Zillow which is an incredibly user friendly site. Should Realtors be concerned? Uh, yes. Not because it will make us obsolete but because like every service industry, the cream of the crop will survive and the rest will not. It's no coincidence that one of Zillow's founding members was a part of Expedia.com who, along with Priceline and Travelocity and countless other sites have basically put travel agents out of business. 10 months ago I wrote a piece about how the parallel of the travel and real estate industry would mean massive changes for all involved in the process of selling property. I believe in that parallel now more than ever. In a nutshell, here is is:

As Realtors, our value in the future will come not from proprietary information but in the analysis and guidance we give people based on that information.

Mull this over. If you're a consumer, I'd appreciate your thoughts by email or phone contact points listed at the bottom of the post.

Nightly real estate rates mixed
30-year fixed rate at 5.66%; 10-year Treasury yield at 3.34%
Long-term mortgage interest rates ended Wednesday mixed, and the benchmark 10-year Treasury bond yield dropped to 3.34 percent. The 30-year fixed-rate average held steady at 5.66 percent, while the 15-year fixed rate gained to 5.09 percent. The 1-year adjustable rate rose to 5.42 percent. The 30-year Treasury bond yield slipped to 4.21 percent.Rates and bonds are current as of 7:15 p.m. Eastern Standard Time. Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.


As always...questions....comments.....donations: Greg@GregCooper.com or
317-848-GREG (4734)

Stupid Is As Stupid Does

Apparently it's catching. The stupid gene, disease, virus, etc., is making the rounds to a degree that would make Mama Gump quiver with disgust. Yes, in an era that finds us in the worst real estate market in 30 years, we still have a mass worship at the alter of dumb and dumber. Locally, Indiana house leader Pat Bauer insisted on passing a tax relief bill that exempts two northern Indiana counties from a constitutional limit of a one percent cap on property taxes against the valuation of the home. Lake and St. Joseph's counties, prepare to get Ned Beaty in Deliverance style treatment. The only reason I care at all about this is because I'm originally from 'the region' and I hate the fact that Pat and his cronies can now stick it to the people that still live in those counties. The other teeny little issue could be the fact that it may make the whole amendment unconsitutional and we'll have to go through this entire damn charade again if that's the case....and why wouldn't it be?








Does anyone think the residents of Lake and St. Joseph counties won't fight this thing? If all of the work of the most recent general assembly becomes for naught, let's call for Pat's rug on a stick, shall we?

Next there's the genuises at Countrywide Mortgage. Terribly managed at the corporate level, they're now in the business of owning as much real estate as possible. Recently our brokerage had a home that had been listed for sale starting at $800,000 for over a year that had dropped to $675,000 with CW holding the mortgage. As it became a short sale (upside down) with NO offers on the home until it reached the $675K mark, it finally got an offer that was accepted by CW at $650K.

Their appraiser came to do a final appraisal on the home prior to the new buyer closing. The CW appraiser decided that even though the home had not sold at every price point from $800K on down to $675K where it finally got an offer, they would value it at $750,000 and subsequently blow the only offer to purchase they would have in over a year. Genius. That was the second such dealing we've had with Countrywide in the last six months that has ended like this. We all know what they say about fool me once....


Ahhh.....then there's the whole Bear Stearns fiasco that took a stock price of $80+- a share on 3/10/2008 and turned it into $2 a share 6 days later. This situation is much more complicated with liquidity and investment placement issues but the bottom line is that one of America's leading finiancial institutions has fallen faster than Humpty Dumpty. Thousands of employees are out of work, retirement portfolios are gone and massive uncertainly crowds the financial markets. Is there another Wall Steet shoe to drop along with Bear? Let's hope not. The fragile psyche of the consumer doesn't need any more bad news.

Let's switch gears to conclude with a little good news. Of a more pure and simple fun nature, I had the pleasure of watching, filming and nearly getting arrested participating in the Indy St. Patty's day parade with my step son Jack on 3/17. It was cold, blustery and no one cared. Many people that we know don't really understand Jack's interest in Irish Dance. Well here it is: I'm sure even at his age the 4-1 ratio of females to males isn't all bad. From our end it's physical, mental and social requiring discipline and a personal investment from him. Everyone's a specialist in this day and age and if that specialty helps you grow into a better person, I'm all for it. It's a long way from politics, home mortgage nightmares and Wall Street but right now, that's not all bad.

Questions....commments.....contact: Greg@GregCooper.com or 317-848-GREG (4734)

Let's get green. Tis the season for shortish men with elf like grins. Yes, it's the season for celebrations of all things Irish. In Indianapolis most kids want to be Peyton Manning. Mine wants to be Michael Flatly. In March, that can be viewed as a noble goal given the month. Right now, yes we're thinking green but there is more than one reason to do that. The obvious is that in a few days we'll collectively come out of our cabin fever, pour a green adult beverage and watch our community celebrate St. Patty's Day. The eight year old in my house got a bit of a jump on it with his Irish dancing recital at the Warren Performing Arts Center. Hard to believe that in Indianapolis, home of the almost no significant cultural diversity (insert tounge in cheek here), there can be such an outstanding dance troupe, but there is. They won't be the only ones dancing or thinking green this month, however. Our good friend Federal Reserve Chairmam Bernake will be dancing a monetary jig as well, but with far more significant consequences. Chairmen Bernake will be guiding the Fed into another significant decsion on how far to lower interest rates again. There seems to be a common belief that it will be at least 50 basis points but some feel we could see a 3/4 point reduction. As sure as I stand here on my soap box had they been paying any attention last summer they could have avoided this. Since no one was listening, we're playing catch up on the rate front, no doubt with some painful national affect.

Bernake spoke recently about the current foreclosure problem. Battling a dangerous wave of home foreclosures,Bernanke called Tuesday (3/5) for additional relief and urged lenders to help distressed owners by lowering the amount of their loans. "This situation calls for a vigorous response," Bernanke said in a speech to a banking group meeting in Orlando, Fla. Even with some relief efforts under way by industry and government, foreclosures and late payments on home mortgages are likely to rise "for a while longer," Bernanke warned. Rising foreclosures threaten to worsen the problems in the housing market and for the national economy, which many fear is on the verge of a recession or in one already. Gee, do ya think?.

While the national issues remain top of mind, real estate remains a microeconomic, local issue. In Indianapolis that still means people are making incredible buys on property. Who has the courage to make those decisions now and who will regret not being a part of the value growth over the next several years remains to be seen. Meanwhile I'll be pouring myself a cold one in all of your honor and hoping for a better 2nd, 3rd and 4th quarters of 2008. Keep your shaleilee dry and your spirits up because friends, we're all going to need it.....

Contact....questions......donations:
Greg@gregcooper.com or 317-848-GREG (4734)

STUPID STUPID STUPID. While challenging negotiations continue to get property tax relief passed in the Indiana legislature, one side of the political aisle has apparently lost their minds. This week Indina House Republicans were attempting to add numerous amendments including a same sex marriage ban into the Governor's proposed tax relief bill that would cap taxes on a residence at 1% of it's assessed value. Whether or not you are for a ban on same sex marriage has nothing to do with a bill to try and keep people from getting kicked out of their homes from excessive taxation! Come on people, get a brain. Stop playing these idiotic games and get this passed before the session runs out and further pain is inflicted on an already over taxed public. If you're curious, you can use this link and find out how the Governor's tax plan would reduce your property taxes.

Think those interest rate cuts by the Fed are going to have an impact? After a 1.25% reduction, here's the most likely time line on when the rate cuts may actually help.

It's All in the Head.....
There are two major issues facing our current real estate market both locally and nationally if we are to see growth resume in 2008. The first, which we cannot change is oversupply. There have been over 100,000 homes built in the last 10 years in the greater Indianapolis area. That's one NEW home built for every 3 PREEXISTING households. In a word, ridiculous.

The second issue that we can change is psychology. The constant drum beat of bad news has kept many would be purchasers on the sidelines. As we look at the national and local housing inventories, we may be seeing the very early stages of a turn. The national numbers listed in the graphic below are similar to our Indy data right now and that seems to indicate we are near the top and perhaps on our way down in total homes on the market. The new and existing inventories are dipping....which is what we have needed for over a year.

If this trend continues over the next several months, we may well see that overall change in supply that has boat-anchored our market over late 2006 and all of 2007. Couple that with a stimulus package from the federal government, interest rate reductions and property tax relief and you have the makings of a bona fied recovery. At least that's what I'm hoping for relative to our clients as I pace my home at 3 am each night.

So if you must sell or desire to sell, defined by motivation and means to meet the market's demand for your property, what are the most significant things you need to do to get your property on the market? That's the topic for NEXT week's Real Estate Minute online Monday February 3, 2008.

Finally a quick summary of the first 25 days of 2008 and how it compares to early 2007. It's a small sample but still reflects a trend in the market. The geography included all of southern Hamilton County and Northern tier of Marion County including Lawrence, Washington, Pike, Clay, Delaware and Fall Creek Townships.

Pending sales from 1/1/07 to 1/25/07 511

Pending sales from 1/1/08 to 1/25/08 389

(2008 sales in units are 23.9% below 2007 for the same time period)