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HELLO AND WELCOME TO INSIDE
INDIANA BUSINESS. I'M GERRY
DICK.
IT IS A NAME SYNONYMOUS WITH

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RESIDENTIAL REAL ESTATE IN
INDIANA FOR MORE THAN 100 YEARS.
NOW INDIANAPOLIS-BASED F.C.
TUCKER CO. IS UNDER NEW

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OWNERSHIP AFTER BEING ACQUIRED
BY PITTSBURGH-BASED HOWARD HANNA
REAL ESTATE SERVICES, A MOVE THE
COMBINED COMPANY SAYS WILL

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EXPAND ITS FOOTPRINT AND SERVICE
OFFERINGS.
THE F.C. TUCKER CO. NAME WILL
REMAIN AND CEO JIM LITTEN IS

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HERE WITH MORE ON THE
ACQUISITION AND A LOOK AT A
CRAZY HOUSING MARKET AROUND
INDIANA.

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JIM, AS ALWAYS, WELCOME TO THE
SHOW.
>> THANK YOU, GERRY. GOOD TO BE
WITH YOU.

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>> A LOT OF PEOPLE, INCLUDING
MYSELF, WHEN WE SAW THE DEAL
WITH THE PITTSBURGH-BASED FIRM.
AN ICONIC NAME IN INDIANA, WHY

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DO THE DEAL?
>> GERRY, ALL BUSINESSES TODAY,
THE BIDS ARE GETTING BIGGER. WE
NEEDED A BIGGER FOOTPRINT. THE

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HANNA COMPANY, LARGEST
INDEPENDENTLY REAL ESTATE
COMPANY IN AMERICA, THEY'RE IN
TEN STATES. WE'VE BEEN GOOD

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FRIEND TEN YEARS, AND CERTAINLY
OVER THE YEARS WE'VE HAD ALL
KIND OF DIFFERENT COMPANIES
EXPRESS INTEREST TO MERGE WITH

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THE TUCKER COMPANY OR BUY THE
TUCKER COMPANY, AND I WANTED
SOMEONE THAT WAS JUST LIKE US,
SO WE FORMED A PARTNERSHIP WITH

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THEM. AND THIS PARTNERSHIP, THEY
HAVE PART OF THE OWNERSHIP, I
STILL RETAIN A SIGNIFICANT
PORTION OF OWNERSHIP, AND THEN

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TWO SENIOR EXECUTIVES IN THE
TUCKER FAMILY, PAT PURDUE AND
DONNA KREPPS. IT PUTS US ON A
BIGGER FOOTPRINT, MORE

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RELOCATION LEAD, BIGGER TECH
MRORMENTS --
>> VERY FAMILIAR WITH THAT
COMPANY, THE F.C. TUCKER GAME,

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BEEN AROUND SO LONG REMAINS AS
WELL. JIM, HAVE TO ASK YOU ABOUT
THE STATE OF THE HOUSING MARKET.
YOU'VE BEEN IN THE BUSINESS A

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LONG TIME, AND IT CONTINUES TO
BE CRAZY.
>> GERRY, I'VE NEVER SEEN
ANYTHING LIKE IT IN MY CAREER.

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YOU KNOW, SEVERAL YEARS AGO, IN
THE CALIFORNIA MARKET, THEY
TALKED ABOUT HOMES GETTING
MULTIPLE OFFERS ON THEM. AND THE

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FACT OF THE MATTER IS IT'S VERY
COMMON ANYMORE WHEN A PROPERTY
IS LISTED THAT MULTIPLE OFFERS
COME IN ON IT, AND PEOPLE ARE

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PAYING OVER LIST PRICE. THE
INVENTORY RIGHT NOW IS DOWN
ABOUT 35% FROM WHERE IT WAS THIS
TIME LAST YEAR. BUT ONE OF THE

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THINGS THAT HAPPENED WITH COVID,
WHEN COVID -- WHEN WE WERE
QUARANTINED IN MARCH OF LAST
YEAR, STRATEGICALLY, WE WERE

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SITTING DOWN TRYING TO PLAN WHAT
IT WAS GOING TO DO TO THE
HOUSING MARKET. NEVER IN OUR
WILDEST DREAM DID WE THINK THE

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HOUSING MARKET WOULD RECOVER THE
WAY IT DID.
>> SO CONTINUES TO BE VERY MUCH
A SELLER'S MARKET. DO YOU SEE

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ANYTHING OUT THERE IN THE TEA
LEAVES AS TO THAT MIGHT CHANGE?
>> GERRY, THE ONLY THING THAT'S
GOING TO CHANGE IS IF THE

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ECONOMY SLOWS DOWN, INTEREST
RATES GO UP, MAYBE UNEMPLOYMENT
GOES UP, BUT EMPLOYMENT NOW IS
GOING DOWN AND CONSUMER

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CONFIDENCE IS GOING UP. SO
I -- NEW CONSTRUCTION, YOU AND I
TOUCHED ON NEW CONSTRUCTION,
THEY CAN'T BUILD THEM FAST

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ENOUGH. PLUS, THE COST OF NEW
CONSTRUCTION.
>> IS THAT COMING DOWN A BIT?
THE LABOR ISSUE HAS BEEN BIG,

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LUMBER PRICES OBVIOUSLY. DO YOU
SEE THAT MODERATING AT ALL?
>> THE LAST COUPLE WEEKS, THE
LUMBER PRICES HAVE STARTED

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MODERATING. IF YOU GO BACK,
FOUR, FIVE, SIX WEEKS AGO,
BUILDERS WERE RELUCTANT TO EVEN
QUOTE A PRICE ON A NEW HOME

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BECAUSE THEY DIDN'T KNOW WHAT
THEIR PRICING WAS GOING TO BE
THREE OR FOUR MONTHS OUT.
>> AS YOU LOOK AROUND THE STATE,

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DO YOU SENSE THAT FOR THE MOST
PART, IT IS KIND OF A SIMILAR
STORY?
>> ABSOLUTELY. AS I VISIT WITH

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OUR PARTNERS AROUND THE STATE,
WHETHER IT'S EVANSVILLE OR FORT
WAYNE, WHETHER IT'S SOUTHBOUND
OR THE REGION, COLLEGE TOWNS,

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EVERYBODY HAS AN INVENTORY
PROBLEM GOING ON NOW.
>> LOOKING AT CRYSTAL BALL,
SECOND HALF OF 2021, INTO 2022,

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YOUR THOUGHTS ON WHAT WE MIGHT
EXPECT MORTGAGE RATES HAVE
CONTINUED TO BE VERY LOW.
>> EXACTLY.

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>> WHERE IS THIS GOING?
>> IF YOU LISTEN TO JEROME
POWELL, WHAT THE FED IS SAYING,
THEY'RE NOT GOING TO RAISE RATES

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UNTIL INFLATION STARTS GOING UP.
IT APPEARS TO BE THAT INFLATION
IS STARTING TO GO UP RIGHT NOW.
THEY SAID THE OTHER KEY

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INGREDIENT WOULD BE THEY
WOULDN'T RAISE RATES
UNUNEMPLOYMENT GOT BELOW
PRE-COVID LEVELS. I THINK YOU'RE

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GOING TO -- A LOT OF THE
ECONOMISTS ARE SAYING THESE
RATES ARE GOING TO HOLD THROUGH
NEXT YEAR.

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>> WOW.
>> IF IT DOES, I DON'T SEE THIS
HOUSING MARKET ABATING AT ALL.
>> GREAT PERSPECTIVE, AS ALWAYS