>>GERRY: HELLO AND WELCOME TO INSIDE INDIANA BUSINESS. I'M GERRY DICK. THE HOUSING MARKET HAD BEEN ON A
ROLL IN INDIANA, RECORD SALES FUELED BY LOW MORTGAGE RATES, CREATING TIGHT INVENTORY IN MARKETS AROUND THE STATE.
THEN THE PANDEMIC HIT. AND WHILE IT HAS SLOWED THE REAL ESTATE MARKET, YOU MAY BE SURPRISED AT HOW THINGS ARE
HOLDING UP AS WE HEAD INTO THE SECOND HALF OF 2020. >>>LET'S TURN TO KELLER WILLIAMS REALTY BROKER GREG COOPER FOR A
LOOK AT WHAT'S TRENDING, INCLUDING RELOCATIONS TO INDIANA... WELCOME BACK TO THE SHOW!
>> GREAT TO BE HERE GERRY. >> IN THE SPRING WHEN THE STARTED NO ONE KNEW WHAT TO EXPECT OR WHERE THINGS WERE
GOING. WE'VE HAD A FEW MONTHS NOW TO WEIGH IN AND SEE HOW THINGS ARE. IN YOUR VIEW, HOW IS THE HOUSING
MARKET RESIDENTIAL REAL ESTATE HOLDING UP IN INDIANA? >> WE REALLY HAVE AN ECONOMICS LESSONS PLAYING OUT IS FAR AS
THE HOUSING MARKET IS CONCERNED MASSIVELY LOW INTEREST RATES AND WE HAVE VERY LOW INVENTORY AND LOW INVENTORY AND LOW MORTGAGE
MONEY TO BORROW AND THOSE TWO THINGS HAVE A TENDENCY TO DRIVE A RED HOT HOUSING MARKET MOST PRICE POINTS AND IN ALL OF
INDIANA IN THE FIRST HALF OF 2012. >> 2.7 AND 2.6 UNBELIEVABLE. WHAT ABOUT SOME OF THE TRENDS,
IF YOU WILL, ONE OF THEM RELOCATIONS. CONTINUING TO IMPART DRIVE THE MARKET.
WE GET FOLKS FROM ILLINOIS BIG ECONOMIC DEVELOPMENT STRATEGY TO PULL COMPANIES FROM THERE, BUT ALSO CALIFORNIA.
>> MOST PEOPLE WOULD NOT THINK CALIFORNIANS WOULD BE LOOKING TO MOVE TO INDIANA. WE HAVE SNOW AND MOST WOULD NOT
THINK THAT WOULD BE AN UPDATE PLAY WHERE THEY WOULD RELOCATE FROM, BUT THE HOLE COVID THING -- ABOUT PEOPLE -- WORKING FROM
WHERE THEY ARE AND WHATEVER THAT MAY BE SO WE HAVE A LOT OF PEOPLE IN CALIFORNIA BECAUSE WE ARE SO AFFORDABLE LOS ANGELES
SAN FRANCISCO SACRAMENTO, A LOT OF PEOPLE ARE MOVING FROM THE WEST COAST BECAUSE THE COST OF LIVING IS TERRIFIC AND THEY CAN
WORK FROM ANYWHERE. >> ONE OF THE OTHER TRENDS WE'RE SEEING A NOT SURPRISING THOSE FOLKS LOOKING TO BUY ARE REALLY
LOOKING FOR MORE AT HOME OFFICE SPACE. >> IT IS A HUGE DEAL AS COVID HAS MADE IT MORE AND MORE
OBVIOUS THEY WOULD BE IN HOME OFFICES IN THE FALL OR A LOT LONGER THAN THAT AND WE'VE HAD PARENTS OR TWO PARENTS WORKING
FROM THE HOME AND KIDS STARTING TO DO HOMESCHOOLING AND E-LEARNING SO THAT DEMAND OR WORK AT HOME SCHOOL AT HOME
SPACE HOLY COW HAS IT SKYROCKETED IN THE LAST 60-90 DAYS. >> GIVE US AN IDEA ON INVENTORY
BECAUSE YOU AND I HAVE TALKED OVER THE LAST TWO YEARS BASICALLY AND HOW TIGHT INVENTORIES WERE IN CENTRAL
INDIANA AND REALLY IN MARKETS ALL OVER THE STATE. HAS THAT SITUATION CHANGED MUCH? >> IT HASN'T.
AS LONG AS MORTGAGE RATES STAY AS LOW AS THEY ARE -- WELL LET ME PUT THIS IN A SIMPLE PERSPECTIVE FOR EVERYBODY.
ULTIMATELY WE HAVE 40 PERCENT LESS INVENTORY THEN FIVE YEARS AGO SO 100 HOMEBUYERS TRYING TO BUY 60 HOUSES.
THAT'S THE CLEAREST I CAN MAKE IT AND IMAGINE IF YOU'RE TRYING TO BUY A HOME YOU ARE COMPETING WITH THAT BATTLE RIGHT NOW.
>> WOW. WOULD YOU TERM IT REALLY A SELLERS MARKET? >> ABSOLUTELY A SELLERS MARKET
AND THAT DOESN'T MEAN SELLERS DON'T HAVE TO PARTICIPATE IN THE PROCESS TO GET TO THE FINISH LINE.
INSPECTIONS AND APPRAISALS ARE SIGNIFICANT CHALLENGES BECAUSE THE MARKET IS SO IMBALANCED TOWARD SELLERS.
THEY DON'T WANT TO MAKE A LOT OF REPAIRS AND THEY DON'T CARE ABOUT APPRAISALS THEY JUST WANT THEIR MONEY BUT BUYERS WILL PAY
FULL DOLLAR OR 100 PERCENT OF FULL DOLLARS THEY WANT THINGS TO BE FIXED ON THE INSPECTION WANT THE APPRAISALS TO COME IN AND
VALUE AND THOSE THINGS DON'T GET MATCH UP WITH GETTING THE PROCESS COMPLETED. >> LOOK INTO THE CRYSTAL BALL IN
THE SECOND HALF OF 2020 AND 2021. THE MARKET IS GOOD NOW, BUT NO DOUBT COVID IMPACT WITH
UNEMPLOYMENT OR EMPLOYMENT LACK OF EMPLOYMENT AND A NUMBER OF PEOPLE OUT OF JOBS AND MORE BUSINESSES WILL FAIL AND NO
QUESTION ABOUT THAT. LONG TERM IMPACT WHAT GOES THROUGH THE REST OF THIS YEAR INTO NEXT YEAR?
>> THEY ARE NOT GOING UP ANY TIME SOON BECAUSE IT'S A BIG TOOL THE FEDERAL RESERVE AND OFFICIALS HAVE TO KEEP THE
ECONOMY HEADED IN THE RIGHT DIRECTION SO I DON'T SEE THEM BEING ABOVE THREE BEFORE THE END OF THIS YEAR OR EARLY NEXT YEAR.
WE HAVE A THING CALLED A PRESIDENTIAL ELECTION OUT THERE AND THAT IS ON THE BACK BURNER BECAUSE OF THE COVID ISSUE, BUT
I THINK WHEN YOU START TO LOOK AT THE ISSUE OF UNEMPLOYMENT AND THE EFFECT OF A LONG-TERM UNEMPLOYMENT, COUPLED WITH
UNCERTAINTY WITH THE PRESIDENTIAL ELECTION WE HAVE AN UNCERTAIN HOUSING MARKET AHEAD, BUT THE MORTGAGE RATES WILL
CONTINUE TO DRIVE AND IT WILL NOT GO AWAY. IT WILL BE DIFFERENT IN SIX MONTHS THAN IT IS TODAY BUT IT
WILL NOT GO AWAY. >> GREG COOPER SOME GREAT PERSPECTIVE AND APPRECIATE IT.