Conference Call that started it all…
After a conference call yesterday afternoon with a REALTOR and her new investor Clients (I was brought into the deal for consultative purposes), I started chewing like a dog on a rawhide bone. The Client asked about some big questions on historical market demand–the 25,000 foot elevation kind.
So this morning I decided to run the numbers again, but for the first 4 months of each year for the last 7 years. Grab your coffee or juice (or if you are already tail-gaiting at the Greatest Spectacle in Racing at the Indy 500 then perhaps an adult beverage) and let’s review some highlights…..
(BTW….all data used in this post was extracted on 5/24/14 from the Metropolitan Indianapolis Board of REALTORS (MIBOR) BLC database.)
Below is a chart of the number of rental transaction in all of the areas served by the Metropolitan Indianapolis Board of REALTORS (MIBOR) each year. Since 2008, a healthy increase each year in the volume of deal flow. Of particular note is the overall percentage change in deal flow over this 7 year period. Yes, your jaw should be dropping right about now…
What’s fun to see with such a massive increase in rental units available and leased is the immaterial change on Average Days on Market (DOM). Check out the stats on DOM below—nothing alarming, in fact, quite logical with the absorption rate from increased Renter Demand curve during these same periods:
Finally, the Average Rent Price….what you’ve been waiting for. As expected, the years 2009 and 2010 took a drop with the macroeconomic fallout of those time periods, but rental rates quickly recovered and, more importantly, have held steady the last four years.
So….what’s your takeaway from all these numbers, charts, and data points?
Depends on your questions.
If you need help even coming up with the questions, feel free to email or call me to chat.
Have a Safe and Reflective Memorial Day Weekend.