People in Bartholomew County who are looking to buy a home have gotten some encouraging news lately, amounting to signs that the scales just may be tipping back toward buyers after years of what has been a seller’s market.
Home prices have fallen locally, The Republic’s Andy East reported, and not by just a little.
“The median sales price of a home in Bartholomew County was $255,000 last month, down from $281,000 in July 2023 and $267,000 in July 2022, according to the latest data from national real estate broker Redfin,” East wrote last week.
That’s roughly a 10% drop in median sale price of homes in the county compared with a year ago, and the lower prices come at a time when economists widely believe that the Federal Reserve will lower interest rates next month. That’s creating some unusual dynamics in the local housing market. And as East wrote, the market price reduction in Bartholomew County bucked the trend of several nearby counties, where median prices continued to rise.
Usually when interest rates rise, home prices fall, but that has not been the case the last few years. That’s because homeowners who years ago locked in low interest rates in the range of 3% to 4% sat tight as interest rates on mortgages doubled in some cases. The result was fewer houses on the market. That lack of supply of homes for sale kept prices high even as interest rates soared.
But that’s beginning to change, too. As East reported, the active inventory of homes for sale in Bartholomew County “rose from 101 in July 2023 to 150 last month, a nearly 49% increase, according to Redfin. The number of homes sold also increased from 99 to 116 and the median time that homes were on the market rose from seven to 13 days over the same period.”
So both buyers and sellers are benefitting to some degree in the current local housing market, according to Jessica Risacher, a Realtor/broker at F.C. Tucker in Columbus.
“We’re being told that we may see rates as low as 5 (percent) in the first quarter of next year,” Risacher told East. “Even though rates did slightly drop recently in the last two weeks, we’re not seeing a whole lot of movement with buyers. … Back-to-school generally slows down the market a little bit. … But also, I think with it being an election year, a lot of buyers are assuming that the (interest) rates may continue to drop closer to November.”
“Right now is a good time to buy,” she added. “You can always refinance later when the rates do come down. But if you wait for the rates to come down in the fives, there is going to be a lot of competition.”
Meanwhile, there are multiple housing developments on the drawing board in our area that plan to offer new homes for sale at right around the recent median sale price.
These are all signs of a robust, expanding and relatively stable local housing market, offering greater options for individuals and families to find the kind of house they’re looking for, whether they are first-time homebuyers, a growing family or downsizing empty-nesters.
A housing market with multiple options — and importantly, affordable options — will help make the American Dream possible for people who wish to call Bartholomew County home.
