Recent requests for absorption rates prompted me to take a look at the current absorption rates in some of the cities around the Indianapolis area. The absorption rate is based on supply and demand and indicates the month’s supply of homes available when we compare the latest month’s sales against the available inventory.

The data provides an estimate of time on market. What the figures mean has been debated.

The generally accepted interpretation is:

• 0–3 months = Sellers Market
• 4–6 months = Neutral Market
• 6+ months = Buyer’s Market

Although the numbers do give us an idea of what is happening in the real estate market, they don’t provide a complete story. The following figures are a broad look at the individual cities.

The Federal Open Market Committee left the Fed Funds Rate unchanged at 2.000 percent this afternoon, as expected. 

In its press release, the Federal Reserve noted the co-existence of inflation and recession.  On inflation, the Fed said that energy and food prices are contributing to an 'elevated state' of inflation, but that it expects price pressures to ease 'later this year and next year'. 

On the topic of recession, the Fed seemed a bit more concerned. Overall, markets reacted favorably to the press release; both stocks and mortgage rates showed signs of improvement in the statement's wake.

Source Parsing the Fed Statement The Wall Street Journal Online June 25, 2008 

Flooding in Indiana and the Midwest has displaced thousands of families and caused billions of dollars in damages. It may also cause mortgage rates to rise. As the extent of the damage becomes more clear, prices for grain and livestock are soaring. 

For example, a host of dietary staples are suddenly more expensive at the supermarket, including:

• Meat
• Pork
• Chicken
• Dairy
• Eggs

Rising food prices are considered inflationary and inflation tends to make mortgage rates rise. But of all the foods that are increasing in price, it's corn whose price is rising the most -- up 70 percent so far since January.  This is mostly because flood waters damaged up to 3 million acres of harvest in Iowa, our top-producing...

I found this cool calculator just sitting on my desktop and thought I would share it with you. It’s a simple tool for calculating appreciation or equity growth.

Since it is not specific to a neighborhood or area of town, the results may actually be different for your home. Historically, Indianapolis real estate is a slow, steady market with modest appreciation of approximately 3%.

Although, the numbers haven’t held true the last few years, real estate is cyclical.

Click on the graph to compute your estimated appreciation. Insert the number of years the property is owned in place of loan length.

This Father’s Day is a bit more special than any previous Father’s Day. I grew up the oldest of seven children and my Dad was my hero.

He always had a way of making everything okay – from skinned knees to fights with my siblings. He loved each of us enough to allow us to grow and make our own mistakes, while also providing a home we could always feel comforted in. Being close to family is one of the reasons I moved back to Indianapolis.

My dad is a quiet man – a hard worker, who finds joy in just living and takes one day at a time. I have learned a lot from him in that respect. I’ve always thought he was the best. This year, though, I have an even greater reason to be thankful for my father.

Last month, on Mother’s Day, my dad went to the hospital with a heaviness in his chest. They ran some test, couldn’t find anything wrong, but decided to keep him overnight. At 5:30, the next morning, he had a heart attack. We actually lost...

The time has come for the homeowners in Indianapolis to realize the effect of the “stay” on taxes ordered last year by Governor Daniels.

Almost one year ago, the uproar over tax bills could be heard throughout the city of Indianapolis as homeowner after homeowner opened their 2006 tax bill. Trending had reached into the pocketbooks of most real property owners, from residential to businesses.

Quickly, we were given a stay on taxes at the previous years rates, while  all properties in Indianapolis were reassessed. Let me tell you, it was NOT the assessment which was the problem – it is the tax rate. It was never more evident than the closing I attended today on behalf of my clients. Should we have closed last week on their home, we would not have known how much the C bill would be....

RealtyTrac released its most recent foreclosure statistics and if you only read the headlines, you think the entire country was on the verge of losing its homes. The underlying data tells a different story, however. More than half of the country's foreclosure activity in May 2008 was tied to just 4 states in the union:

1. California (28 percent)
2. Florida (14 percent)
3. Arizona (5 percent)
4. Michigan (5 percent)

In other words, the majority of mortgage defaults are coming from a small minority of states. See, between 2002 and 2006, California, Florida and Arizona were very popular with real estate speculators, many of whom over-extended themselves on real estate; and Michigan's economy has been decimated by job losses in the auto and manufacturing industries. In addition, these 4 states are among the nation's most populous. 

It makes sense that they are distorting the national statistics. On a local level,...

Most homeowners make four housing-related payments each month:

1. Principal on a mortgage
2. Interest on a mortgage
3. Taxes on the real estate owned
4. Insurance for the real estate owned

Collectively, these payments are known by the acronym PITI but don't let it fool you -- a homeowner's monthly expenses are still called PITI even if one or more of the elements doesn't apply. For example, a homeowner with an interest only mortgage does not pay principal each month. 

Additionally, condo owners typically don't pay homeowners insurance -- they pay a monthly assessment and/or maintenance fees to an association instead. But regardless for what it stands, determining a comfortable PITI should be every homeowner's starting point when looking for a new home. 

PITI is the monthly housing cost, after all, and by knowing what fits in your budget, it's a lot easier to compare homes and their related expenses. Although you won’t...

 Last weeks rain and subsequent flooding in several locations around the state have left many homeowners wondering if they will ever return to the place they called home. They are digging out their belongings, trying to salvage what they can, while they wait for the waters to recede and a “good word” from their insurance company. Many may not get the news they hope for.

While some of the flooded areas were in a flood plain and more than likely, covered by flood insurance, many were not. The outcome could have a devastating effect on cities and communities throughout Indianapolis and the state; more importantly, the people who live there. There were floods in places which never flood and we’re talking Indiana here. Did you know our average precipitation is 35–40 inches a year? Even so, many were not and could not be prepared for this devastation.

 Will Your Insurance Cover Water Damage?

How do you decide which agent to hire to market your home and represent your interest in the home selling process?

Maybe you have a friend who’s an agent, someone at work has a license, your neighbor, or brother-in-law. Your sister’s friend has a daughter who just got her license.

There’s a sign in another yard in your neighborhood.

One thing for sure, you won’t have to look far to find someone with a real estate license willing to list your home. With so many available Realtors, how do you make the choice?

In today’s real estate market, where a home seller needs a competitive advantage, it is a question which should be given some serious thought. Not all agents are alike! Not even close! This isn’t self promotion; instead,...

When you can’t decide what to do or just don’t know what is happening around Indianapolis, don’t despair! AroundIndy.com is a great website dedicated to keeping track of “things to do” around Indy.

They offer an extensive community calendar featuring day to day activities and events around Indy, from Farmers Markets and concerts to day trips and dining. The site directory will help you find local activities, even neighborhood garage sales. 

The best part, straight from the webmaster: “You don't have to take any surveys, answer any questions, jump through any hoops, or register for ANYTHING to see and use the entire site. We promise no pop-up ads, no junk e-mail, no spam...

Decorating a home is truly a matter of personal preference and one distinct difference of opinion between home buyers and home sellers is often paint color.

While you may love the red wall in the family room, if you are trying to sell your Indianapolis home, you may want to consider neutralizing the color, especially dark colors. Dark colors tend to make a room look smaller and less open.

A tip for Indianapolis home sellers:  Buyers will offer 3-4 times less than the cost of a simple repair or paint job required to make a home perfect for them.  So, if $500 dollars fixes a real (or perceived) problem, buyers will reduce their offer by $1,500-$2,000 for the property, or will make no offer at all.  Unfortunately, buyers and their real estate agents are not always honest in their feedback.  Sometimes, they'll give...

When you’re buying a home, knowing the condition of major systems in the home is an important factor to consider. The cost of repairing and/or replacing major components can equal a substantial investment.

This is also great information to have when selling your home or remodeling. Use as a checklist to provide the new home owner with any records you have. Homebuyers appreciate knowing the home they are buying has been properly maintained.

Even if everything is working properly when you buy a home, it’s good to know the life expectancy of the systems. We all hear about the standard systems within a home; water heater, central air, furnace and appliances, but what about the common products and materials used in a home?

Here’s a list of both the common and “not so common” products and their life expectancy.

Dishwasher: 10 years

Microwave: 11 years

Range: electric, 17 years;  gas, 19 years

Central Air Conditioning:...