Indianapolis Real Estate at the Bottom of the List
Home buyers seem to be concerned about the future value of the home they buy today. And, rightfully so! The national media makes it sound like all real estate markets are in deep trouble. Not the case; all real estate is local. If you are in the market to buy a home in Indianapolis, you will love the latest news from PMI Group. PMI Mortgage Insurance Company recently released it’s Market Risk Index of the 50 largest Metropolitan Statistical Areas (MSA). These are the people who insure residential mortgage loans.
In plain english, the company rates major cities for the risk of property values being less in two years than they are today. At the bottom of the list is Indianapolis-Carmel. They rate the entire area of Metropolitan Indianapolis. In this case, it’s a good thing to be at the bottom. The Indianapolis-Carmel real estate market has less than 1% chance of property values declining in two years. This is the list of cities who rank at the bottom.
- Milwaukee-Waukesha-West Allis, Wisconsin
- Cleveland-Elyria-Mentor, Ohio
- Austin-Round Rock, Texas
- Denver-Aurora, Colorado
- Charlotte-Gastonia-Concord, North Carolina-South Carolina
- Kansas City, Missouri-Kansas
- Columbus, Ohio
- Cincinnati-Middletown, Ohio-Kentucky-Indiana
- Indianapolis-Carmel, Indiana
- San Antonio, Texas
- Houston-Sugar Land-Baytown, Texas
- Pittsburgh, Pennsylvania
- Dallas-Plano-Irving, Texas
- Fort Worth-Arlington, Texas
To read the full report, click here.
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Discussion
I totally agree with you. I my area of New Jersey we seem to be in recovery. The number of homes on the market has been steadily falling, and the number of homes selling and closing each month has been going up.
This is a HUGE problem here. I'm working on a blog. Buyers are just sitting on the fence thinking that they will be able to "steal" a house in "a year or so." That's what they said last year...and the year before that....and the year before that...well you get the picture. Ever since the peak in 2005 its been like pulling teeth and I'm finally starting to PUSH THEM MUCH HARDER. The reason is tightening credit and interest rates that have no place to go but up. They are still in sticker shock - our prices haven't come down more than a few token percentage points (condos/coops are UP and SF homes down 6%.) Everyone wanted a DEAL and they aren't seeing them so they are sitting on their hands. But if they can't get a loan - it doesn't matter how low prices go.
Thanks for this article. This is a great list for real estate investors, as you can see which markets provide the least risk of a drop in value after you purchase. An astute investor should focus on markets like Indianapolis, Columbus, Austin, and San Antonio where the risk is lower and there is a better chance you homes value will hold. Although I did not see Boise on the list, or anywhere on the list in the main article......
It's amazing how local real estate is, even down to individual neighborhoods. In Greater Phoenix some neighborhoods have declined over 18% from 2007 while several have increased by 2-11% over 2007. Still, there is much risk out there and lots of uncertainty.
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