The Indianapolis real estate market continues to be full of twists, turns and contradictions. The good news? In the first quarter of 2012, new home construction permits in the Indianapolis metro area rose by 13 percent year-over-year. In total, 872 new construction permits have been filed. This is a great sign for increasing consumer confidence in the recovering real estate market, and is sure to put some interesting new inventory on the market for home buyers. Hendricks County, home to hot suburbs like Brownsburg, Plainfield and Avon, led the way with construction permits, increasing 36 percent year-over-year.
On the downside, Indiana’s foreclosure rates are up sharply compared to 2011. While the nation as a whole saw foreclosures decrease by 16 percent from the first quarter of 2011, Indiana’s spiked 45 percent. Does this mean we’re headed back into recession or into another low period of consumer confidence? Not necessarily. Remember the “robo-signing” controversy from 2010? In light of those series allegations of problems in the foreclosure system, many banks held off on beginning foreclosure proceedings. But a recent settlement between the banks and state attorney generals (including Indiana’s) means that logjam has now been lifted and banks are going full-speed ahead with foreclosures once again.
So what does this mixed bag mean for you? New construction signifies increased confidence and is not surprising considering the jump we’ve seen in Indianapolis home sales lately. The foreclosure situation, as unpleasant as it may be, does present some tremendous deals for the savvy buyer. Foreclosures can often be bought below market value as anxious banks try to unload the properties, and can often become fantastic investment properties or primary homes.
Need more help untangling the Indianapolis housing market? Call Polaris Real Estate. We’ll tell you what the latest numbers mean for you, and help you make informed decisions about the future.