2011 Ending on a High Note

Pending home sales across the country for the month of October were up 10% from September -- and 13% from a year ago.

According to real estate expert Barbara Corcoran on the NBC TODAY show last week, that's the largest change for one month in a long time.

"It simply means more people are buying homes," she said. "But, even more importantly, fully 20% of all homes in America actually have appreciating prices for the first time."

Similarly, the monthly Indiana Real Estate Markets Report published by the Indiana Association of Realtors® shows activity was high in October with both the number of closed and pending home sales up by double digits when compared to last year.

Things are looking up, and the housing market here in northwest Indiana is making steady progress as well.

Local real estate professionals agree that things are looking a bit brighter than they have in quite some time - especially for this time of the year - with attractive prices, a nice selection and historically low interest rates making it a great time to be buying a home.

"November closings are up 73.92% this year over 2010," Bill McCabe of Century 21 Executive Realty in Schererville said. "It has been a roller coaster with January-February up, March-April-May-June down, July-August-September up, Oct down and Nov up. Our previous record month was August up 64.99%. In units, we are up 17.76% for the year, which is a great sign."

"In Porter County we sold more units by the end of the third quarter than last year," Jeanne Sommer of Century 21 Alliance in Valparaiso said. "New construction is moving as well as resale homes. A lot of people who wanted to sell their home in order to move up while there are so many great values in the market are finding they are able to make that move a reality now."

McCabe concurs.

"People know there are good deals out there," he said. "As long as interest rates are low, affordability is better than ever and as a result there is a mixture of things going on right now."

Noting that he believes consumer confidence is up, McCabe points to the fact that both more expensive and new construction homes are selling again.

"New construction has certainly had its challenges lately," he said. "Inventory is down, but people are buying lots with plans to build as soon as possible next year. Some of the lots out there are priced as low as 50 cents on the dollar right now when compared with what they were just a short time ago."

"Homes under $250,000 continue to be top sellers," Sommers said. "Sunshine Homes, for example, has three available model homes priced under $250,000 in Mistwood, and they are currently at work on a presold home there as well. But, we are also starting to see some definite movement in more expensive homes, especially those with higher price points."

Another key to the real estate market's strong finish this year is the fact that everyone's a bit better prepared for the roadblocks on the lending side of things, according to McCabe.

"Deals are getting done more efficiently," he said. "Appraisals, for example, are more on spot to what's needed now. They are more organized and more complete in order to comply with today's guidelines."

One more thing to keep in mind is the fact that rental rates are increasing.

Historically, there's typically a strong correlation between rising rental rates and rising home prices. Today, that is not the case, and rental rates alone are well into a long-sustained price increase making it often cheaper to buy than to rent at most price points.

In fact, according to The Wall Street Journal, the monthly cost of owning a home - including the mortgage payment, taxes and insurance - is now more affordable in most places than it has been at any point in the last 15 years.

The result is sure to be even more buyers in the housing market looking to enjoy the benefits home ownership that include: building equity over time; a sense of community, stability and security; the freedom to change decor and landscaping; and tax deductions for mortgage interest and real estate taxes.

Now is the time to take action - whether you are considering a first home, move-up home or downsizing - and the best way to find out if it's the right time for you to make a move is to contact a local Realtor®. Plus, if you currently have an existing home, a Realtor® can provide expert advice on everything you need to know to get it sold, including the right price.

Then, the most important step toward buying a home is to get pre-approved for financing through a lender (remember, it's all about eliminating roadblocks). Once you have an approved price range, you can begin your search for a great deal on the perfect house to call home.

To submit real estate news, community connections and special event/model information e-mail krueger.dm@sbcglobal.net.