November Newsletter - Indianapolis
Hey friends in the Circle City! We’re super excited at LUXE/RE to bring you our second monthly newsletter. These newsletters will bring you real estate market updates, events in the area you won’t want to miss, and life updates on our team members. We hope you enjoy the content and as always, if you have any questions relating to real estate…you know where to find us. Last month, we broke these out by county, but honestly, central Indiana’s market is all pretty similar in the areas we service, so we’re going to combine things this month.
November Market Update
What happened in October?
Well, things were pretty normal. About as normal as “normal Spongebob” might seem after the past 5+ years of such a crazy real estate market.
We typically see October as a fairly strong month for home sales in the Indy metro area, and this year was no exception. While we saw September have a pretty sharp decline (mostly due to fast interest rate hikes), it seems like consumers have largely taken the new interest rates as the norm, and are continuing to buy. We saw both price per square foot and median sales prices go up slightly, rebounding a little bit from a sharp decline in August/September. My hunch is that typical winter seasonality will keep prices relatively level through winter, at least until the late winter/early spring months.
Every year we typically see inventory taper down in winter, and pending sales gradually decline. This year was no exception. That is exactly what we saw happen in October. Overall, we see this as good news. After years of a market that was too hot to sustain, we are seeing things return to some level of normalcy. Buyers can purchase today without needing to give away their first-born, and sellers are still netting record high amounts for their homes.
The one thing to keep an eye on, in our opinion, is the absorption rate - put simply, the amount of months it would take to sell off all of the inventory of homes at current buyer demand should no new homes come on market. We saw this pretty sharply spike in October - up over 40%! While that sounds scary for sellers, and might seem on the surface level like it could be tipping toward a crash, it’s important to keep in mind that a “balanced” market is somewhere between 5-7 months of inventory. That said, us sitting just below 2 months indicates a very strong seller’s market still today, expecially as we are approaching winter.
So altogether, what should we expect in the near future? Well, I would predict (if I had a crystal ball) a relatively stable, slowly growing market. The FED is going to continue to raise rates to stop the proverbial train. Inflation is too high, and housing is a large category fueling that. They’ll attempt to raise rates to slow the market down, but will attempt not to crash it. Good old uncle Jerome has vowed to “keep at it”. Last month, I predicted rates in the 7-8% range, and would you look at that…they’re here. Don’t be surprised if we see interest rates in the 9-10% rate soon. If you’re considering a move soon, what should you do? Reach out to us! Every situation is different, and we’d be happy to talk through your options and what makes the most sense for you. Now, on to the fun stuff!
What’s Happening!?
The Indy metro has a ton of events happening this November. Here’s a great resource to see them all!
Life Updates from the Team
It’s been an exciting month for us!
To start things off, Reagan and Austin added a member to the family by adopting Poppy (Popcorn) the 6 year old golden doodle grandma! She’s been loving life so far and wearing Reagan out with how much she needs to play!
Austin ran his first ever 5k with some great friends and real estate investor clients, Mark and Aaron.
We got to move into our new office in Greenwood!
And last but not least, Reagan ransacked the neighborhood of all their candy with her cousin Norah.
