Bloomington’s real estate market growth almost doubled that of the rest of Indiana through 11 months of 2015. Monroe County closings were up 13.2% versus the statewide average of 6.8%. Bloomington prices were also up 5.4% raising the median price to $167,750 which compares to $133,500 for the rest of Indiana.
A chronic low inventory of existing homes and only 200 new home permits in 2015 drove the appreciation in median price.
The macro indicators look good too. Economists at IU’s Indiana Business Research Center say foretasted employment growth of 2% and personal income growth at 4% will put Bloomington in the top handful of Hoosier metro markets in 2016. As goes employment and earnings, so goes the the housing market as well.
As expected, interest rates have inched up and most experts are forecasting perhaps a 1/4 point bump by the fed each quarter for a full point increase throughout the year. Mark Fleming writing for Forbes says. “The real estate market is strong enough to withstand this increase and the increases will not have a big impact on affordability and/or demand”.
After just seeing The Big Short, I hope he’s right.
Happy New Year!