Is the real estate market awakening from its extended slumber?

The news is a source of information that is frequently mis-interpreted.  But in conversations with a few real estate agents around Indiana, it seems like everybody is busier.  Showings are up.  More offers are being made and accepted.  And I even heard one agent talking about how there might not be enough inventory for the recent increase in demand.

So what kind of headlines might we be reading in a few months?  If what we are seeing in Indiana is typical of much of the country, those headlines might be about the market rebounding from its lows, about increased sales and possibly increased prices.

The last few years have been some troubled and complicated times.  The issues have been confusing with unprecedented numbers of homeowners upside down, the "Repogate" robosigning revelations, short sales becoming more commonplace and other issues.  Subdivisions and condo developments have sat unfinished.  A huge number of bank-owned homes and HUD Homes have competed in the marketplace for a supply of buyers diminished by fear of the economy and tightened underwriting requirements by the banks.

But the bright news has been the extremely low and affordable interest rates.

What is causing this new increased activity?  Let me suggest a few possible reasons:

1. Interest rates have increased in the last few weeks.  We all knew that the unprecedented low rates of the past year or so would not last forever.  But nobody knew when the rates would move up from their bottoms.  The upward movement hasn't been much, so far less than 1/2% from their lows.  As this bounce in the rates has been publicized, I'm sure it is part of the motivation for more buyers to get into the market fearing that rates might go up further.
2. Spring is the historical time of increased activity almost every year.  With an earlier than normal launch of spring weather, those who would have otherwise been deterred by the cold and snow, have started their home search.  (I am speaking about the weather in the Indianapolis area where we have had several daily record high temperatures just in the last week.)
3. People continue to be born, get married and form new households. Just as the auto industry has come back to life (you can't keep running the old jalopy forever) there is pent-up demand for real estate.  With so many people having chosen to rent, home prices (with still-low interest rates) are attractive when compared to increasing rents.

So is this increase happening in other parts of the county, or is it unique to Indiana?  I would be interested to see what other agents around the country are saying.  Is there an increase in demand?  And why?

For buyers and sellers in the highly affordable Indianapolis - Carmel Indiana real estate market, I invite you to investigate homes that are for sale.  Take a look at what is available in your area.  If you are a buyer, it might be best to act sooner than later.  If you are a seller, this might be the best opportunity in recent years to get a good price for a well-located home in excellent condition.  You can search real estate in Indianapolis and surrounding areas at indyrealtystore.com