Giving Thanks for Member Benefit CE |
Have you considered using some of your holiday downtime to knock out your twelve-hour CE requirement with RECP? It’s the perfect excuse to avoid that Black Friday shopping trip and soak up some knowledge with a leftover turkey sandwich.
Completing your CE hours early is also the gift that keeps on giving heading into next year’s license renewal cycle – you must complete all required CE before submitting your renewal by June 30th! Plan ahead and save yourself the added stress.
This twelve-hour package includes The Art & Science of Winning Negotiations (taught by Robert Morris) – crucial in today’s market – and Helping Customers Understand Smart Homes (with Craig Grant) for those of you interested in making the high-tech features of your listings stand out to buyers. And resolve to reduce your risk in 2023 with classes focused on the REALTOR® Code of Ethics and the latest developments in Indiana real estate law and practice from IAR’s legal team.
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Rising Mortgage Rates Hit Close to Home |
Check out IAR’s preliminary housing estimates for October 2021 – on-demand data at www.IndianaRealtors.com under Consumers > Housing Data
30-year mortgage rates hovered near 7% for much of October, and Indiana real estate felt the fallout: Existing home sales fell 23% below October 2021 while new listings dropped 16%.
The Federal Reserve has never raised target interest rates this rapidly to combat inflation, and housing has been the biggest casualty. But lower-than-expected inflation in October means the worst could be behind us; here are a few more points to keep in mind:
Indiana home sales and property values are more stable than the U.S. as a whole.
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Indiana home sales declined less than 10% in the third quarter (July through September) compared to 2021; U.S. home sales fell more than 20% below 2021 in Q3 (NAR).
- Sale prices have also been steadier here: The U.S. median sale price has fallen 8% since June, versus 5% across Indiana.
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Indiana’s year-to-date home prices remain 12% above 2021 while the YTD gap has narrowed to less than 10% nationally) – homes are holding their value despite economic headwinds.
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A more ‘normal’ seasonal slowdown also helps explain the year-over-year drop-off:
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In the red-hot markets of 2020 and 2021, there was hardly any decline (»1%) in home sales from September to October – activity surged into November before slowing.
- Some of this October’s sharp year-over-year drop-off is a return to a more typical pattern of slowing sales from the end of summer through the end of the year.
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Takeaways for buyers and sellers:
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- Even with new listings falling, total inventory remains above 2021 as homes stay on the market longer (by roughly a week from list to close vs. October 2021); qualified buyers can find bargains in a cooling market.
- Mortgage rates continue to fluctuate with the economic outlook: In October alone, average rates dipped by 30-40 basis points twice ($70-$80 per month on a 30-year $200,000 loan).
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Price appreciation is slowing but steady well above 2021 – sellers can still capitalize on healthy demand, even with fewer buyers in the market.
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Check out IAR’s October housing release (preliminary data) here.
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HOAs: A forum for community dialogue and quality of life or a haven for overbearing neighbors? Whatever your take, HOAs are a fact of life for many Hoosier homeowners – and questions about their covenants, assessments and the limits of their authority are likely to come up in potential deals.
IAR’s legal team has created this Q&A to tackle some of the concerns, disclosure requirements and potential scenarios that could arise when homebuyers consider properties served by an HOA.
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Housing Task Force Releases Inventory Recommendations |
Earlier this year, the Indiana General Assembly created a Housing Task Force to study ways to rebuild the state’s housing inventory. The statewide monthly average of homes for sale has dropped roughly 80% since 2011, while average monthly sales have increased 60% (and Indiana’s population has grown by nearly 300,000 Hoosiers).
Even with this year’s market slowdown, the Task Force recognized the urgency of scaling up residential supply to meet long-term demand. Indiana REALTORS® were given a seat at the table, represented by IAR CEO Mark Fisher.
The Housing Task Force has released its findings, covering tax policy and development incentives, infrastructure financing, homebuyer assistance programs, fair appraisals and assessments and more:
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- See the draft Task Force Report here.
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Check out Mark Fisher’s perspective on the Task Force and its recommendations via INside Indiana Business.
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For more context on the inventory challenges leading to the Task Force, check out this presentation to Aim (Indiana’s association of municipal elected officials) at its annual Ideas Summit last week.
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IAR and Aim have also collaborated on a Housing Resource Guide that offers a practical handbook on how local governments can help promote new housing development in cities and towns: Download the Housing Guide here.
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Save the Date - Legal Update + Legislative Outlook |
Legal and Legislative Update – Thursday, January 19 on Zoom. Watch for more details!
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Capitol and Market. It’s not only our address but also what we do. IAR backs you at the state Capitol and works to keep REALTORS® at the center of their local market. This monthly newsletter will report on these efforts, as well as all the other information you’re entitled to as a member.
Add news@indianarealtors.com to your address book and be sure to let your local association know when you change email addresses (that’s where we get your contact). Thank you for reading and thank you for your membership.
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