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Your summer guide to the Indiana housing market, from tips for buyers to new projects

Indianapolis Star - 6/9/2021

Central Indiana's residential real estate market has defied the coronavirus' economic downturn, with home sales and prices reaching historic levels. 

A seller's market pre-pandemic, the coronavirus stirred the region's housing market into a frenzy and tilted even more in the favor of sellers.

Buyers flooded the already tight market, with demand severely outpacing supply. Prices are rising. Homes sell within hours. Cash offers are plentiful. Bidding wars take place. Buyers are offering above list price and often paying more than they plan. 

Buying a new home in 2021 can be stressful, overwhelming — and ultimately joyful. Over the past year, IndyStar has chronicled the market activity to help you understand and navigate the homebuying process. 

Below you'll find a list of stories about how the housing market has behaved during the pandemic, home buyer demographics, tips on choosing a real estate agent and the region's hottest neighborhoods. 

This list will be updated so be sure to check back as we add more. 

How coronavirus has affected Indianapolis home sales: The novel coronavirus may have changed how real estate agent Tiffany Dearman showcases for-sale homes, but it hasn't slowed her business. 

When she listed a newly-constructed single-family home for sale in early May, the home sold within six minutes of appearing online. The sale is one example of how buyers are quickly purchasing homes, a trend that would continue throughout the pandemic.

Housing market trends continue into fall as affordability concerns grow: In October 2020, the median sales price of Central Indiana homes was $221,000 — nearly 15% above the same time period one year ago. Meanwhile, the active inventory of available for-sale homes was 49% lower.

October was the fifth month in a row where price appreciation exceeded 10%, prompting MIBOR, the professional organization representing Central Indiana realtors, to warn of growing affordability concerns.

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Why the Central Indiana housing market remains so hot during the pandemic: Experts say buyer demand, a historically low inventory and especially low interest rates are helping to fuel the market frenzy in Central Indiana.

But for some new homeowners, quarantining during the coronavirus pandemic was a motivating factor for buying a new home. "I wanted projects to do, and I wanted to like where I was living, like a lot more than I liked where I was already living," said Aubrey Kearney, 27, who prior to becoming a first-time home buyer shared a 1,200-square-foot duplex with her boyfriend, Matt McConahay, 28.  

How the real estate boom is affecting Hamilton County home prices: Prices of new and existing homes continued to rise in Central Indiana in the first three months of 2021, with Hamilton County leading the way.

Experts said the demand for building supplies is driving up the cost of new homes while overwhelming demand for existing homes is doing the same on the resale market.

The Builders Association of Greater Indianapolis reported that single-family building permits in Central Indiana were up 66% over 2020 with 1,127 permits this year compared to 680 in March of last year.

Out-of-town home buyers are flooding Indianapolis. Here's why: While it's safe to assume that most of those looking for a new home in the Indianapolis-Carmel-Anderson metro area live there, economists at the residential real estate website realtor.com say at least one-third of them do not.

Prospective buyers from Chicago, New York, St. Louis, Louisville, Minneapolis, Los Angeles and Atlanta areas have been showing interests in the region.

'Good luck': Millennials ready to buy homes find daunting market in Central Indiana: Millennials are the largest generation of homebuyers since baby boomers. While millennials were long assumed to be a renting generation, it turns out many were waiting for their savings and income to reach a point to allow them to settle down. And now, more and more of them are jumping into the housing market. 

After renting in Indianapolis for several years, Monica Munoz, 27, and Kate Konzen, 28, are finding buying a home more daunting than they imagined.

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Here are 7 tips for potential homebuyers in this tough Central Indiana real estate market: "Homebuyers are facing the toughest buyer's market in a generation, maybe ever," says Avery Garrett, Realtor, owner and managing broker at Streamlined Realty in Greenwood. 

But, if you're in the market anyway - say, because you have to move or you really want a new home - you might as well make the best of it. Here are a few ways to increase your chances of success and improve what's proving to be an otherwise difficult homebuying experience for many.

3 things to look for when choosing a real estate agent for Indianapolis' crazy market: You're a bit particular about the house you buy. You wouldn't just sell on a whim, either. So when you're seeking professional help to find — or unload — what for most is your biggest asset, there's reason to be thoughtful about whom you choose.

A real estate agent can help you navigate challenges you don't anticipate. To do that, however, an agent needs to know how to rise to the occasion. To find one who can do that for you, here's what professional peers say you should consider in making your selection.

Selling your Indiana home? Don't do these 5 things: Even with the pandemic, strong homes sales are predicted for 2021. Realtor.com is forecasting sales of existing homes will be up 7% this year. So while would-be buyers still need to take precautions — such as masking up when they tour homes — there's reason not to wait to put your home on the market.

Here are some things you shouldn't do - and what you should do instead.

'Potential liability': A 'love letter' from home buyer could open door to discrimination: 

Real estate agents and the organizations representing them are advising against a practice that was once largely viewed as just another way to stand out: home buyer love letters.

Such letters are typically written by buyers wanting to distinguish themselves from the crowd. But more recently they are being reassessed for their potential to open the door to discrimination.

Why some homebuyers are paying $100,000 over asking price in Central Indiana: Have your heart set on a dream home? In this seller's market, you might pay a premium to snag it — if that's even possible.

"I've sold three houses this month at over $100,000 over list price," says Kristie Smith, a Realtor with Indy Homes Team at Keller Williams Realty. "When a house is really beautiful and move-in-ready perfect — and that's what people want — people will fight for that. And they're willing to waive appraisals, waive inspections, pay a bunch of extra cash - and these buyers are overpaying considerably."

How COVID-19 is affecting whether to sell a home — or stay put:

There are a number of reasons the housing market is heating up, agents say, even as some homeowners are choosing to stay put. Like everything in the COVID era, it's complex. Here is a look at some of the dynamic real estate factors influenced by the pandemic.

Why building a new home in Indianapolis will cost an average of $24,000 more this year: Home buyers who covet a brand new built-from-scratch house this year may have to pay a premium for the privilege. Why? Because the vast majority of homes are wood-framed — and a lumber shortage has caused building costs to spike.

Since mid-April of last year, the price of a new single-family homes has risen sharply, increasing by more than $24,000, according to the National Association of Home Builders.

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Black homeowner had a white friend stand in for third appraisal. Her home value doubled: Carlette Duffy felt both vindicated and excited. Both relieved and angry. For months, she suspected she had been low-balled on two home appraisals because she's Black. She decided to put that suspicion to the test and asked a white family friend to stand in for her during an appraisal. 

Her home's value suddenly shot up.  A lot. Along with the Fair Housing Center of Central Indiana, Duffy has filed fair housing complaints against the mortgage lenders and appraisers she accuses of undervaluing her home because of her race.

What to do if you suspect discrimination in home appraisals: If you experience or suspect that you've being discriminated against, you can take action. Here are several things you can do. 

Here's why Lafayette is the nation's 6th-hottest home market: Virtually no place is hotter right now than Lafayette.

The city ranked No. 6 on realtor.com's recently released list of the 20 hottest real estate markets in the U.S. for March. The site ranks metros monthly based on market demand, measured by unique viewers per property on its site; and how quickly properties sell in that market, or the number of days that listings are active on the site. 

The housing market is hot — and these Indy-area neighborhoods are among the hottest: Whether you're planning to buy or sell a home — or looking to do both in rapid succession — you can't miss how quickly everything is moving right now. That's evidenced just about everywhere. And agents say some long-time coveted neighborhoods and popular areas are seeing a lot of activity in this seller's market.

"In Indianapolis, some of the neighborhoods that are always strong and moving very quickly now would definitely be Butler-Tarkington and Meridian-Kessler and, on the Eastside, Irvington," says Mark Branch, Realtor for Highgarden Real Estate in Indianapolis.

Suburbs ringing the Circle City are also home to bidding wars and well-over-list-price sales. Here's what some hot neighborhoods have to offer for those in the market.

Historic mansion home to Newfields CEOs was listed for $2.2M — and has accepted an offer: For the first time in almost 90 years, the majestic mansion that housed the Clowes family and Newfields' museum directors has been put up for sale. The list price? $2.2 million. The time lapsed between its market debut and an offer that's been accepted? Four days.

Agreement reached to sell Carmel's Asherwood Estate. The final price tag remains unknown: The Great American Songbook Foundation reached the deal for the 107-acre estate with Gradison Land Development, of Indianapolis, and the anonymous mansion purchaser, who will also own 20-acres around the home.

Gradison will develop 40-single family homes north and west of the mansion on the rest of the property. The seller and buyers signed an agreement to keep the sale price confidential, so it's unknown if it came close to the $30 million an appraiser valued the estate at when it was donated to American Songbook.

Ex-Colts QB Philip Rivers' Westfield home for sale, just a tad over $1 million: The house is empty and he's gone. Philip Rivers gave the Indianapolis Colts his final season as an NFL quarterback. While he was here, he lived in a modest (by pro athlete standards) Westfield home he purchased for $995,000 in 2020.

Now, the house in the Brookside neighborhood on Majestic Oak Court is up for sale for $1.049 million.

Tina Smith, with Century 21 Scheetz, helped the Rivers family find the home and is helping them sell it. The 5-bedroom, 6-bath house went on the market just a few days ago and already has a sale pending.

Dana Hunsinger Benbow, John Tuohy and Michael Schroeder contributed to this report. Contact IndyStar reporter Alexandria Burris at aburris@gannett.com or call 317-617-2690. Follow her on Twitter: @allyburris.

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