Southern Indiana Market Update with Chris Fox - January 2020
As we head into the New Year, the Southern Indiana real estate market is off and running. Chris Fox looks at the numbers to see how the market is doing, and if it’s a good time to buy or sell a home in Southern Indiana in January 2020.
As always we want to focus on the leading indicators. What’s happening in the market today as opposed to what the typical media report is, which is what happened two or three months ago in the market. The media is always talking about things like closed sales and the average sales price. Those are delayed stats. On average that info is going to be three months delayed. The reason you watch these videos is to find out what’s happening three days ago, not three months ago. And here’s what’s happening three days ago in the market.
The number of new listings coming on to the market versus this same time a year ago is actually down 5.6%. While the number of listings going off the market into escrow is up 6.6%. So what does that cause? You’ve got fewer homes coming on the market, more homes going off the market. That’s starting to decrease our supply of inventory. When we looked at this number a month ago, we were at a 35.3% increase year over year. That’s dropped down to 15.8. So we had this massive supply of inventory that was on the market during the holidays and in the first quarter. We’re starting to see that supply start to drop down a little bit.
We’re also starting to see the days on market or the time it takes for a property to go into escrow, we’re starting to see that drop down a bit. These are things that we see oftentimes year after year. We get into the spring season. We get into the summer season. There’s a lot of people that are looking to make their moves. Most of the time in the spring we see people that are relocating from out of the area. They’re looking to make that move a little bit earlier because they want to get into San Diego before the summer time. They want to enjoy the summer. Other parts of the country it either gets crazy hot like in Arizona in the summer or some people are coming from places like Minnesota where it’s literally still snowing today. They want to get out into San Diego as quick as they can. They want to get away from the snow or they want to get away from the incoming heat. So we start to see a lot of those people that are coming from out of the area come into town this time of year.
And then as we get into the summertime, we start to see a lot of people relocating within the San Diego community. So people that maybe have some kids and they want to relocate to a better school district because we’ve got some amazing school districts in San Diego and some not so amazing ones. So you see people relocating from within the county. That typically happens over the summertime.
So we’re starting to see all the writing on the wall.
The other thing that we’re seeing is March was the best month for mortgage rates in a decade. Rates just plummeted in March. So what’s great is that you have rates that are as low as they’ve been in over a year right now. And you’ve still got a decent amount of inventory. So if you’re out there if you’re looking to buy, you have a decent amount of selection. The inventory is shrinking but is still better than it was a year ago. So you’ve got some options out there and you’ve got rates that are significantly lower than they were a year ago. And drastically lower than they were even three or four months ago. So there’s a great opportunity for you if you’re looking to buy.
And for those of you that might be looking to sell, the real opportunity right now is to sell and move up. ‘Cause what we’re seeing is on that lower price point, there’s less inventory. One the higher price point there’s more inventory. So it’s a perfect scenario to sell where there’s a low inventory and buy where there’s a high inventory. There are more options for you. So either way, there’s an opportunity for you out there in the market.
If you’re looking to take advantage of it, call or text Chris Fox at 502-489-7806.