It's always a balancing act if youâ€™re trying to time the market. If you buy in the future, how are rates going to be? If you buy now, are you going to get a good deal? I would suggest that rates are at historic lows and there are plenty of buying opportunities now. To top it off, there are plenty of repo and corporate owned homes on the market that are being discounted. Statistics will give you the general state of the market but you really need to define what property you want before making a decision on general statistics. There are certain price ranges selling quite well in Zionsville and Carmel. Certain communities are selling as well. Looking at year-to-year averages, our market continues to grow. Looking at just a snapshot of 2-3 months market statistics gives an unrealistic picture. We are still in one of the top 5 years, historically, in the home market here. There are simply more buyers coming here every year. The reasons are many for this, but generally speaking housing and lifestyles are good in the communities you mentioned and population is growing.
The metric you expressed can be defined as: Months of Inventory based on Pended Sales. It will give a month to month accounting as to how things are doing. For Carmel, things have been getting better each month, contrary to what you have said. 1/08 was 9 months, 2/08 was 7.3 months, 3/08 was 6.8 months.
Contrasted to last years Months of Inventory based on Pended Sales: 1/07 was 6.6 months, 2/07 was 6 months, 3/07 was 5.3 months. 4 months of inventory or less was typical of our best years ever, so 5-6 months in todayâ€™s market shouldn't be viewed as that bad. I guess where I'm going with this is that things are not as bad as what you might believe if you just listened to the media.
Now given your analysis of more inventory and fewer sales, this translates to a buyers market. If homes are not selling and inventory increases, pricing will come down as the market dictates. I'm not really worried about the market totally dropping around here. The Indy area has always been pretty stable, no huge run ups and no huge losses. So do the math. A stable market, historically low rates, increasing inventory, sales dropping. All these add up to buying opportunities.