Indianapolis Real Estate Market Outlook 2017

    So 2016 was quite a year of changes wasn’t it? With our public focus dialed in on political campaigns and elections, the real estate market quietly buzzed forward. This was true in central Indiana and was seen from traditional stalwarts such as Carmel, Fishers, Zionsville, Avon, Center Grove but also led by the up-and-comers like Fountain Square, Bates-Hendricks, SoBro, Irvington, Speedway and old town Greenwood. More to follow on all of these areas in other blogs.

    From the depths of the housing recession, we have risen to a burgeoning local housing market. Supported sometimes by somewhat iffy national employment and economic indicators, our housing market has continued to grow and expand. Locally, we have seen a change in governors and other leaders but a continued emphasis on metropolitan stability, urban growth, and regional planning. From an economist and real estate agent perspective, we see this as exciting. A house can’t stand without a proper foundation, and Indianapolis cannot capitalize on its decade of momentum without that same foundation.

    Affordability is at the core of what makes our housing market attractive. With tons of new industries and headquarters continuing to locate in our market – we need to have multiple varieties and price tiers for buyers. But compared to the national market, we are much more affordable on pricing. We didn’t have huge price dips during the recession so sellers aren’t hurting overall on this affordability factor. This is important as we compete with other local midwestern markets to attract talent out of college. As interest rates rise (which they must do to support a healthy economy and not be artificially suppressed over long periods of time), this will be a factor as well. This affordability component also attracts outside money which spawns investment, development, rehab, and many other financial opportunities for our local communities.

    We see the supply of homes to continue to underserve the demand from buyers. This supply is down due to the holdback of builders during the downturn, the increased competition from institutional investors, and previous lack of consumer confidence. Builders will continue to try and catch up. Markets will further expand out. Revitalized communities will continue to grow inwards. Rising rental rates will push some towards home ownership. Thus finding a real estate expert like those at The Indy Property Source will be paramount in order to understand these trends and manage the expectations of buyers in today’s market in central Indiana.

    Look foward to keeping you updated this year on trends, neighborhoods, news, relevant topics, and Indianapolis real estate in general.

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