By Brad Litz
Real Estate Broker, Appraiser & Investor
All signs are pointing to a positive year for the housing market, both locally and across the country. Demand is up due to historically low interest rates, currently around 3.5% for a 30-year and 2.85% for a 15-year, both fixed rate mortgages. The current supply of homes is down by over 20%, as compared to 2 years ago, which is driving home prices up. However, home prices are still within reach of many due to these incredibly low interest rates. As well, a number of factors indicate that we won’t see any significant changes in interest rates in the immediate future.
Even if you are not planning on selling or buying any time soon, this affects you directly. As prices of similar homes increase, your equity will increase as well, and inversely your loan-to-value ratio will decrease. If you have a loan on your home, it would be a good time to monitor the market and compare your home against recent sales in the area to see if your loan-to-value ratio could benefit you. If your loan is less than 80% of your current home value, then you are eligible to have your PMI removed, either by requesting removal from your current lender or refinancing through a new one. If you are thinking of some new home projects, the increased equity in your house may allow you to take on a secondary loan at a low interest rate in order to finance those projects.
Our Idyllic neighborhoods of Meridian Kessler and Butler-Tarkington are still as desirable a location as you can find in the Indianapolis area. I am getting more phone calls now than ever before to see if I know of any ‘pocket listings’ or private sales that may be coming to the market soon. This, obviously, tells me that demand for our immediate neighborhoods is very high and that should make everybody happy, as that means that your property value is most likely heading in the right direction.
The increased demand is also a testament to the people of the neighborhood who take such pride in their homes and community. As long as we keep that up, we are going to continue to see our homes stay in demand and values continue to rise. Plus, its’ just such a nice place to live!