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.
Washington, July 23, 2009
Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June, according to the National Association of Realtors®. Existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 3.6 percent to a seasonally adjusted annual rate1 of 4.89 million units in June from a downwardly revised pace of 4.72 million in May, but are 0.2 percent lower than the 4.90 million-unit level in June 2008. Lawrence Yun, NAR chief economist, is hopeful about the gain. “The increase in existing-home sales occurred in all major regions of the country,” he said. “We expect a gradual uptrend in sales to continue due to tax credit incentives and historically high affordability conditions. Despite the rise in closed transactions, many Realtors® are reporting lost sales as a result of new appraisal standards that went into effect May 1 of this year.”
A June survey of NAR members shows 37 percent experienced at least one lost sale as a result of the new Home Valuation Code of Conduct, with seven out of 10 reporting an increased use of out-of-area appraisers. Seventy percent of NAR appraiser members said consumers were paying higher fees, while 85 percent report a perceived reduction in appraisal quality.
“Clearly the process needs to be revised, but the most logical approach is to use appraisers with local expertise, industry designations and access to local data, who make a physical examination of the property and use apples-to-apples comparisons with nearby home sales,” Yun said. “In many cases, normal homes are being compared with distressed homes sold at a discount, which often are in subpar condition – this is causing real harm to both buyers and sellers.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.42 percent in June from 4.86 percent in May; the rate was 6.32 percent in June 2008. Mortgage interest rates have trended lower in recent weeks.
Total housing inventory at the end of June fell 0.7 percent to 3.82 million existing homes available for sale, which represents a 9.4-month supply2 at the current sales pace, down from a 9.8-month supply in May. Raw inventory totals are 14.9 percent below a year ago.
“This is another hopeful sign – if we can keep the volume of sales above the level of new inventory, prices could stabilize in many areas around the end of the year,” Yun said.
An NAR practitioner survey in June showed first-time buyers accounted for 29 percent of transactions, unchanged from May, and that the number of buyers looking at homes is up nearly 12 percentage points from June 2008.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there are very good opportunities. “Despite some of the challenges, the housing market continues to demonstrate signs of recovery,” he said. “The temporary first-time buyer tax credit is clearly helping people make a decision and is contributing to the overall stimulus impact, but since it’s taking longer to close transactions, many would-be beneficiaries may not be able to take advantage of the credit before the December 1 expiration date. As a consequence, consumers need the expertise of Realtors® more than ever to navigate both the obstacles and opportunities in today’s market.”
The national median existing-home price3 for all housing types was $181,800 in June, which is 15.4 percent below June 2008. Distressed properties, which accounted for 31 percent of sales in June, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.
Single-family home sales rose 2.4 percent to a seasonally adjusted annual rate of 4.32 million in June from a level of 4.22 million in May, and are 0.2 percent higher than the 4.31 million-unit pace a year ago. The median existing single-family home price was $181,600 in June, which is 15.0 percent below June 2008.
Existing condominium and co-op sales jumped 14.0 percent to a seasonally adjusted annual rate of 570,000 units in June from 500,000 in May, but are 3.1 percent below the 588,000-unit level in June 2008. The median existing condo price4 was $183,300 in June, down 18.9 percent from a year ago.
Regionally, existing-home sales in the Northeast rose 2.5 percent to an annual pace of 820,000 in June, but are 4.7 percent below a year ago. The median price in the Northeast was $249,400, down 5.9 percent from June 2008.
Existing-home sales in the Midwest increased 0.9 percent in June to a level of 1.10 million but are 1.8 percent lower than June 2008. The median price in the Midwest was $157,000, which is 9.1 percent below a year ago.
In the South, existing-home sales rose 4.0 percent to an annual pace of 1.81 million in June but are 3.7 percent below a year ago. The median price in the South was $163,200, down 11.9 percent from June 2008.
Existing-home sales in the West improved by 6.4 percent to an annual rate of 1.16 million in June, and are 11.5 percent higher than June 2008. The median price in the West was $214,800, which is 24.9 percent below a year ago.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
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NOTE: Any references to performance in states or metro areas are from unpublished raw data used to analyze regional trends; please contact your local association of Realtors® for more information. 1The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos. 2Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982.
3The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported. 4Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.
Existing-home sales for July will be released August 21. The next Pending Home Sales Index & Forecast is scheduled for August 4; release times are 10 a.m. EDT.
Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data in this release, other tables and surveys also may be found by clicking on Research.
There is so much information available from which information can be gained thru some of the videos available through various sources.
The concept of “Green” in residential construction is gaining popularity around the country. Our local builders are learning more about how to introduce this into their building specifications. Tim Pratt of Breeden Construction LLC recently completed classes on “Green Construction” through BAGI – Builders Association of Greater Indianapolis.
This information was obtained from the National Association of Realtors
HUD: Tax Credit Can Be Used on Closing Costs FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.
Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.
The loans can’t be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.
Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.
There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.
In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.
The first-time homebuyer tax credit was enacted last year–and improved upon earlier this year–to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven’t owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.
Learn more about the credit, including how to apply for it this year even if you’ve already filed your taxes, at REALTOR.org.
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.
Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:
The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.
The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.
While we are nearly through the first six months of 2009, normally by this time of year real estate would be booming and many, many homes would be sold: this is, after all, prime season for real estate. This is a different kind of year, unfortunately.
A beautiful sunset with no relevance to post subject
Some Homeowners have been delighted to experience a rapid sale of their property. Others, however, despite very appealing, well-priced homes are experiencing excessive marketing time. There does not seem to be a plausible explanation for this other than maybe good fortune by some, misfortune for others! Occassionally, the right buyer just happens to come along sooner, rather than later. While we as a real estate company are continuing to do every marketing activity to create sales known to man (practically), sometimes it just doesn’t happen as quickly as we would like.
THE FUTURE may be better. Our belief is that there will be pent-up demand in the near future for real estate. This view is shared by many in the know about the economy. We believe that those who would have normally purchased by now given the very enticing interest rates, available Seller concessions and well-priced inventory of homes have been waiting – IT’S OBVIOUS – but are still the Buyers of the near future.
When the dust settles and these Buyers realize their jobs are secure, we believe they will act and purchase. A problem for those already owning homes which would need to be sold would have to be remedied. Given the fact that this pent-up demand exists in all price ranges, however, it is likely the chain reaction created could solve the problem.
We are waiting, watching and working to help this to happen sooner, rather than later for all of our loyal Buyer and Seller Clients. WE CERTAINLY APPRECIATE THEIR PATIENCE.
Our company as been in business for a very long time (established 1951) and during that time, there have been many changes in real estate, the forms, the marketing, financing certainly and the way business is conducted.
We at CENTURY 21 Breeden Realtors have prided ourselves on keeping up with new technology, trends, marketing, etc. Having been an independent real estate brokerage since 1951, we purchased a CENTURY 21 franchise in 2004 because we felt the merits of the CENTURY 21 system were outstanding and offered even more for the future. While Breeden Realtors had been #1 in Listings and Sales for many, many years, we were interested in giving our Buyer and Seller Clients the very best service and professionalism available in South Central Indiana, actually our goal was the best service in this country.
Through the years, we have maintained the philosophies and standards established by the founder of the company, Rex E. Breeden, later joined by Bernard Hunter and Robert A. Grant. They worked to take the practice of real estate to a new level of service and professionalism and higher standards in integrity and honor. We have stressed that each client with whom we work – whether Buyer or Seller – involved in expensive, inexpensive, large, small, city, rural – deserve to receive the very best handling of their real estate transaction. The perception that someone perhaps more fortunate would somehow receive better treatment, more attention cannot be practiced if a real estate company is going to establish a fine reputation. Yes, it is a fact that special handling is given to special properties; HOWEVER, we would stress that every time we are entrusted with the responsibility of someone’s real estate, we consider it very special – no matter what the size of that transaction might be. We remain grateful for each opportunity that we are given and work to live up to the expectation of each and every client. All properties we handle are special and treated with respect.
Real Estate Sales in South Central Indiana have changed drastically from 2008 and 2007. While 2008 was not a record year, sales during that 12-month period were only slightly less than what might be expected during a normal economy. Although most of Indiana experienced a difficult time in real estate, the real estate market didn’t actually begin to show a severe decline until the very end of 2008 and certainly 2009. Our company market share has actually increased during 2009 due in part to the tremendous effort being made by our residential sales team.
Our company is having “Super Open House Weekend” on Saturday from 1-3pm and Sunday 1-3pm and 3:30-5pm. There will be a total of 48 open houses and the location, price and features can be viewed at the above link. Our Open Houses was well attended and create interest in the properties from Buyers who attend.
*This representation is based on data supplied by the Columbus Board of Realtors or its Multiple Listing Service for the period 1-1-09-5/31/09. Neither the Board not the MLS guarantees or is in any way responsible for its accuracy.
Sometimes known as the Center of the Golden Triangle, Columbus has the advantage of being in the middle of the triangle created by
Indianapolis – North - 1 hour
Louisville – South - 75 minutes
Cincinnati – East – 90 minutes
Welcome to Columbus Indiana real estate – real estate view and news – all happening in South Central Indiana. We have houses for sale in the area with many pictures. We are also sharing many pictures of Columbus and the architecture that has made Columbus 6th in the United States for its significant architecture designed by architects of prominence.
While most of our future posts will involve some real estate information, we want you to get acquainted with the quality of life in Columbus. Please take a minute to view our Columbus photo album.
Visit the Visitors Center to learn more about Columbus Indiana and view a video on architecture. The Visitors Center is located in downtown Columbus and is the starting point for both the guided Architectural Bus Tour as well as the walking tour of downtown locations.
Here’s a great video from the VISITORS CENTER showing the gift shop.
