Residential real estate around the state.

AuthorKaelble, Steve
PositionIndiana - Industry Overview

Homes in Indiana continue to appreciate at a moderate pace, and recession or not, many real-estate agents are quite upbeat about the state of residential real estate.

"Overall, we've got the best of both worlds," says Joyce Cook, president of the Indiana Association of Realtors. "The sellers are getting top dollar for their homes if they are listed correctly and if they are priced correctly, and the buyers are getting the best interest rates. So everybody's happy."

As of the third quarter of last year, the median home price in Indiana was $63,600, up from $60,900 a year before, according to the Indiana University Center for Real Estate Studies. Homes appreciated in 14 of the study's 19 regions. Indiana's homes continue to be a bargain compared with homes nationally; the national median-home figure was $102,200, up from $94,400.

Appreciation, obviously, is great for owners and sellers, and because it has been only slow appreciation, it's not too bad for buyers, either. "It may be that this turns out to be one of the best times to buy a house," says Jeffrey Fisher, director of the Center for Real Estate Studies, "given that home prices haven't gone up all that much over the past year and that mortgage interest rates are at a very attractive level."

The ability of Hoosiers to afford homes continues to grow, according to the center. Indiana's housing-affordability index rose to 162 in the third quarter, up from 153 the year before and well above the third-quarter national index of 111. That means an Indiana family with the median income can afford to purchase a house worth 62 percent more than the state's median home.

Judging from real-estate activity so far this year, Hoosiers truly believe in their ability to afford homes. "Beginning New Year's Eve, we have felt sales activity pick up due to low interest rates," says Larry D. Hitz, president of Century 21 Executive Group in Valparaiso. "The year started on a very strong note."

Ann Gishler, broker/owner of RE/Max Realty Plus in Muncie, shares Hitz's enthusiasm. "Three of our agents were showing property on New Year's Day--two agents even sold one. 1992 came in with a bang."

Adds Don Lee, broker/owner of Century 21 Don Lee Realty in Newburgh, "We have decided that if there is a recession taking place, we choose not to participate."

Not only are the residential markets in Indiana more active than those in many parts of the United States, sellers are doing better here than in some other regions...

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