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>>GERRY: HELLO AND WELCOME TO
INSIDE INDIANA BUSINESS.
I'M GERRY DICK.
THE RESIDENTIAL HOUSING MARKET

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IN INDIANA COULD BE ON THE VERGE
OF A DROUGHT.
THERE ARE REPORTS THAT AVAILABLE
INVENTORIES ARE DOWN MORE THAN

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30 PERCENT IN SEVERAL HOOSIER
CITIES...
AND IT'S A SELLERS MARKET...HERE
IN CENTRAL INDIANA, REPORTS OF

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HOMEOWNERS RECEIVING AS MANY AS
NINE OFFERS...
AND THEN THERE'S THE STICKER
SHOCK FOR NEW HOME BUYERS...

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FOR MORE ON THE HOT INDIANA
HOUSING MARKET AS WE HEAD INTO
THE SPRING BUYING SEASON, I'M
PLEASED TO BE JOINED BY

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BERKSHIRE HATHAWAY HOMESERVICES
INDIANA REALTY MANAGER AND
BROKER GREG COOPER.
AS I WAS WELCOME.

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>> GREAT TO BE HERE.
>> YOU ARE A BUSY GUY, HAVE
YOU EVER SEEN A MARKET THIS
CRAZY?

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>> MULTIPLE DECADES OF DOING
THIS AS I HAVE AN I'VE NEVER
SEEN THIS.
LAST YEAR WE HAD A TASTE.

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THIS YEAR THE GAP HAS WIDENED
AND MUCH MORE UNIVERSAL IN TERMS
OF CRAZINESS.
>> IS THERE AN INVENTORY

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DROPPED?
>> I DON'T HEAR IT CALLED THAT
BUT I WOULD CALL IT THAT.
THERE ARE SO FEW HOUSES AND WHEN

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YOU HAVE MULTIPLE OFFERS OVER
AND OVER AGAIN ON SIMILAR PRICE
OUR PRETTIES I DON'T KNOW HOW
YOU CALLED ANYTHING BUT A

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DROUGHT.
>> IS IT GETTING WORSE?
>> IT IS NOW.
LATER IN THE YEAR I THINK IT

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WILL EASE BACK BUT WE ARE IN THE
PEAK OF THE MARKET ACROSS
INDIANA WHICH ABSOLUTELY MEANS
THE MAXIMUM NUMBER OF HOMEBUYERS

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COMPETING FOR MINIMUM PROPERTIES
RIGHT NOW AND RIGHT NOW IF
ANYTHING IT'S FASTER THAN IT WAS
IN JANUARY.

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>> A SELLERS MARKET.
GIVE US SOME EXAMPLES ON THIS IS
NOT LIMITED TO CENTRAL INDIANA.
IT'S ALL OVER THE STATE.

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>> IF YOU HAVE A HOUSE
ESPECIALLY THAT MEETS THE TRUE
DEMANDS OF THE MARKETS, UPDATED,
SOME GREAT TONES THAT PEOPLE

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FIND ATTRACTIVE RIGHT NOW, WE'VE
HAD HOUSES IN DIFFERENT PLACES
IN INDIANA THAT ARE FIVE, NINE
OFFERS AND IN ONE PROPERTY WE

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HAD SIX OF THE NINE OFFERS HEAD
ESCALATION CLAUSES, WHICH MEANS
BUYERS WERE AGREEING TO THROW
EXTRA MONEY INTO THEIR OFFER

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UNDER NO UNCERTAIN TERMS UP TO A
LIMIT WHICH BECOMES CRAZY.
>> TALK ABOUT PRICES BECAUSE
HOUSING PRICES HERE SOUNDS MORE

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LIKE CALIFORNIA THEN THE
MIDWEST.
>> YOU NEVER SEE IN INDIANA
WHERE HOUSING PRICES GO UP

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12 PERCENT IN A QUARTER
YEAR-AFTER-YEAR.
IT NEVER HAPPENS.
DOZENS OF COUNTIES IN THE FIRST

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THREE MONTHS OF 2018 SUB DOUBLE
DIGIT MEDIAN PRICE ESCALATIONS
FROM 2017.
>> NEW CONSTRUCTION FOR THOSE

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LOOKING TO BUY NEW, THOSE COSTS
HAVE ESCALATED.
>> THE COST OF RESALE HAVE GONE
WAY UP PEOPLE BIDDING ON

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PROPERTIES OF THE COST OF NEW
CONSTRUCTION HAS GONE UP BECAUSE
OF A GREATER DEMAND AND
MATERIALS AND LABOR ARE MORE

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EXPENSIVE AS WELL.
>> SO MANY FACTORS PLAY INTO
THIS WHEN IT COMES TO MORTGAGE
RATES.

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WHAT DO YOU SEE?
>> THEY ARE AFFECTED BY A LOT
OF DIFFERENT THINGS NOT JUST THE
PRIME RATE BY THE FEDERAL

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RESERVE SO THERE WILL BE A BUNCH
OF FACTORS THAT WILL PROBABLY
CONTRIBUTE TO A LITTLE HOW YOUR
MORTGAGE RATES DEPENDING ON HOW

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HIGH THOSE GO EVENTUALLY
PROBABLY LATER 2018 WE SEE
DEMAND SLIDE BACK AND A BETTER
BALANCE, BUT IT WILL NOT BE

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FIXED COMPLETELY THIS YEAR.
>> THE ADVICE IS DIFFERENT FOR
BUYERS AND SELLERS AND FIRST OF
ALL, IF YOU ARE A BUYER AND YOU

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WANT TO BUY SOMETHING, WHAT'S
YOUR ADVICE?
>> TWO THINGS YOU HAVE TO HAVE
SOMEBODY WHO KNOWS THEIR STUFF

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HELPING YOU BECAUSE THIS IS NOT
A MARKET FOR THE FAINT OF HEART.
YOU HAVE TO BE PREPARED IF YOU
ARE LOOKING AT A HIGHLY POSITIVE

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PRICE POINT, AT 150000-200,000
AND YOU ARE LOOKING FOR POPULAR
PRICE POINT YOU NEED TO HAVE THE
PATIENCE TO UNDERSTAND YOU MAY

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HAVE TO BID ON TWO OR THREE OR
FOUR HOUSES.
KNOW THAT GOING IN AND MAINTAIN
YOUR :-COLON DON'T GET UPSET IF

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THE FIRST ONE IS NOT PERFECT.
>> WHAT ABOUT THE SELLER SIDE?
>> THEY THINK I HAVE TO PUT A
SIGN-UP BUT IT'S NOT THAT SIMPLE

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BECAUSE YOU HAVE TO PRICE IN A
WAY THAT THE APPRAISAL ON THE
HOME HAS TO COME IN AS WELL
BECAUSE APPRAISALS ARE SLOW TO

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CATCH UP WITH SALES PRICES.
IF IT COMES IN BELOW THE SALES
PRICE WHAT DO THEY DO?
THAT'S BEEN A PROBLEM FOR A LOT

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OF PEOPLE IN THE FIRST QUARTER.
>> GREGG COOPER, INDIANA GREAT