The boiling real estate market is good news for sellers, ‘daunting’ for buyers

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Iris O’Donnell Bellisario had always imagined that the search for his first home would be a memorable experience. First-time homebuyer says it was certainly memorable, but for all the wrong reasons.

Hot real estate market is good news for sellers, ‘daunting’ for buyers

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“It has been one of the most frustrating events of my life,” she said.

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After five months of searching, she saw dozens of homes, made nearly half a dozen deals, and lost each one.

“Every home that I bid on, the winning bid is in cash, $ 20,000 to $ 50,000 above asking price, with no inspection or appraisal,” she said. “It ended up being a stressful and overwhelming experience. “

Industry experts say it’s a snapshot of an image we’re seeing across Indiana: more buyers than homes available for sale, which leads to more competition, which drives up the prices.

Jordan Moody is a real estate broker who sells homes throughout the Metro Indianapolis area, including Boone County, where he says there are 70% fewer homes on the market than at the same time. Last year.

“The days of you just texting your agent, saying ‘hey, I want to see this house, maybe we’ll negotiate the price,’ those days are gone,” Moody said.

Typical home values ​​increased 14% in Johnson County, 17% in Madison County and 16% in Marion County, according to Zillow.

O’Donnell Bellisario is looking in one of the toughest markets in the country. Realtor.com named Greater Lafayette, Indiana the third hottest real estate market in the country in April.

Real estate firm RedFin said last month that nearly three-quarters of housing offers face bidding wars nationwide.



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This is good news if you are trying to sell your home. But for those who are trying to buy – especially for the first time – the realization of this key part of the American Dream seems further than ever.

“I almost feel like it’s impossible,” said O’Donnell Bellisario. “I lost a lot of hope. I went there feeling really excited like, ‘this is going to be the coolest time of my life’, but it really has diminished.

“What this means for buyers is you have to get creative,” said Moody, who explained that conventional loans are often the way to go if you’re considering financing a purchase. And the more money you put in, the better your chances are.

“These government guaranteed loans are beaten by cash offers or conventional offers of over 20%. So you really have to be strong on your funding in this market, ”he said.

According to Realtor.com, here’s what else you can do:

  • Be prepared to move quickly when you find a home. This means getting pre-approved before you start looking for a home.
  • Industry experts recommend looking for homes below your budget (in some cases well below your budget). That way, if you have to bid above the asking price to compete, you can do so without stretching your wallet.

O’Donnell Bellisario had hoped to be moved to his first home now. She’s frustrated, but hasn’t given up yet.

“I’m still looking,” she said. “I just… lengthened my schedule.”

Here’s how much the values ​​of typical homes in central Indiana have increased since last year, according to Zillow:

  1. The typical house in Bartholomew County costs $ 193,185, an increase of 8.3% in one year.
  2. The typical house in Benton County costs $ 104,951, which is an 11% increase in one year.
  3. The typical home in Blackford County costs $ 79,836, an increase of 5.7% in one year.
  4. The typical house in Boone County costs $ 292,960, an increase of 7.7% in one year.
  5. The typical Brown County home costs $ 216,616, an increase of 6.3% in one year.
  6. The typical house in Carroll County costs $ 145,554, a 6% increase in one year.
  7. The typical house in Cass County costs $ 93,880, an increase of 7.1% in one year.
  8. The typical house in Clinton County costs $ 124, an 8.2% increase in one year.
  9. The typical home in Delaware County costs $ 106,808, an increase of 11.9% in one year.
  10. The typical home in Fayette County costs $ 88,909, a 9% increase in one year.
  11. The typical home in Grant County costs $ 92,634, an 8.3% increase in one year.
  12. The typical home in Hamilton County costs $ 333,172, which is an 11% increase in one year.
  13. The typical Hancock County home costs $ 231,334, an 11.8% increase in one year.
  14. The typical Hendricks County home costs $ 249,389, an 11.6% increase in one year.
  15. The typical Henry County home costs $ 104,338, an 8.3% increase in one year.
  16. The typical home in Howard County costs $ 132,949, an increase of 10.2% in one year.
  17. The typical home in Johnson County costs $ 224,683, an increase of 13.6% in one year.
  18. The typical home in Madison County costs $ 129,397, an increase of 17.1% in one year.
  19. The typical house in Marion County costs $ 180,894, an increase of 15.7% in one year.
  20. The typical house in Miami County costs $ 94,740, an increase of 7.5% in one year.
  21. The typical home in County Monroe costs $ 250,023, an increase of 10.9% in one year.
  22. The typical home in Montgomery County costs $ 141,036, an increase of 7.9% in one year.
  23. The typical home in Morgan County costs $ 207,565, an increase of 13.8% in one year.
  24. The typical house in Putnam County costs $ 165,021, an increase of 7.2% in one year.
  25. The typical Randolph County home costs $ 94,687, an increase of 6.9% in one year.
  26. The typical Rush County home costs $ 127,042, an increase of 7.9% in one year.
  27. The typical home in Shelby County costs $ 152,941, an increase of 7.9% in one year.
  28. The typical home in Tippecanoe County costs $ 207,865, which is an 11.5% increase in one year.
  29. The typical home in Tipton County costs $ 144,104, which is an 8.1% increase in one year.
  30. The typical home in Warren County costs $ 145,723, an increase of 9.4% in one year.
  31. The typical home in Wayne County costs $ 107,791, an increase of 5.3% in one year.
  32. The typical house in White County costs $ 147,788, a 9% increase in one year.

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