There is no question that demand for homes in Columbus Indiana  has been drastically reduced.    Of course, this is true in Indiana real estate as well as homes sales across the country.

The number of sales of homes for 2009 year-to-date thru 7-31-09 as compared with the same period in 2008 in Columbus was reduced by 33.5%.   When comparing 2009 to the same period in 2007, the number of sales was reduced by 44.5%.    This is an enormous difference. 

It is obvious that the Columbus real estate market has suffered during 2009 beyond all expectations.  The lower interest rates and buyer incentives have created some demand but have not stimulated the market locally or nationally as hoped. 

Likely,  a long term reduction in the pool of buyers will be the consequence of of the increases made in required credit scores raising the score necessary higher for mortgage loans.  Also, there have been changes in minimum down payment so that no down payment loans and seller participation in the down payment programs are no longer available.  

Thus pessimism, joblessness, high credit scores and greater down payment have all played a huge part in a greatly reduced number of sales for 2009.   Some of these changes will have long-term effects on real estate in Columbus, Indiana certainly.

I have heard many reminesce about prices in high-demand areas in years past in Columbus, Indiana.   Frequently, they recall the missed opportunity to purchase at lower prices in these high-demand areas at unbelievably low prices (by today’s standards).   One of these discussions often involve lake lots at Grandview Lake.   

Although I am unsure of these facts, it is said that at one point in time years ago, lake lots were available for $8,000 – obviously a fraction of the lot cost in Columbus now.  A question usually follows such as, “Why didn’t you buy several lots when they were so affordable”?

Sometimes I wonder if this could be another time in our history of residential real estate in Columbus Indiana when homebuyers in the future will remark that extraordinary opportunity existed in 2009.

• While homes are not selling at a fraction of their former value in Columbus, appreciation has certainly been halted.  In some price ranges, there is an oversupply and the lack of demand plus strong seller motivation to sell has resulted in reduced prices.  
• “Thinking outside the box” is certainly playing a role in Columbus home sales for trade-ins, buy-down of interest rates and other seller incentives certainly exist.
• “Thinking outside the box” is a philosophy now being used by our Century 21 Breeden real estate team as each agent tries to position the listed property to create interest in the eyes of buyers.

With very appealing interest rates, a great inventory in all price ranges and the creativity of incentives being used by those with a strong desire to sell NOW, the 3rd quarter of 2009 appears to  be a fine time to do real estate business in Columbus.