Let’s face it – real estate transactions, and the current real estate market, can be tricky. As the new year has rolled in and we’re now heading into spring and summer, it’s a good time to start looking at where the real estate market stands and where it may be headed – along with tips for the home buying process.
In recent years interest rates have risen dramatically, peaking at over 8% in October of 2023. Now, mortgage rates have gone up from 6.35% (September 2024) to the current average rate of 6.85%. The reality homeowners are facing is that rates in the 5% to low 6% range might now be considered the new low.
In Howard and Tipton Counties, houses are on the market for an average of 40 days with an average sale price of $196,313 and a sale-to-list price ratio of 98.47%.
Home inventory has increased in many markets, and while it’s not enough to meet buyer demand, it’s a sufficient boost to market activity. Real estate data provider CoreLogic predicts home prices will grow at a modest annual rate of just 2.3% through September 2025.
While the housing market has been like a roller coaster, how are buyers supposed to keep up?
Carrie Gruel from Kokomo-based Carrie Gruel & Associates knows real estate transactions are complicated, and she is here to help. Using a realtor brings a wealth of market expertise and in-depth knowledge of the local market to the buying or selling experience. It also brings wider exposure for your home, and helps leverage strategies like professional photography, staging and advertising to reach more buyers.
Still, many buyers have come into 2025 wondering – what’s the best way to approach the market?
Gruel says financial preparedness and getting pre-approved are key steps for a smooth home buying experience. Here are her four top tips for pre-approval:
Check your credit scores. The higher the score, the better interest rate.
Reduce your debt. Lowering your debt-to-income ratio improves your chances of pre-approval.
Gather your financial documents. The lender will need pay stubs, tax returns, W-2 or 1099 forms, a bank statement, and proof of assets.
Don’t make large purchases or change jobs before or during the pre-approval process and real estate transaction as it could affect your loan eligibility.
She also debunks three “rules” that homebuyers generally hear, and offers alternative suggestions to help buyers make buying a home a reality.
Rule: Save 20% for your down payment.
Reality: Putting 20% down will eliminate private mortgage insurance (PMI), but it is not necessary. Many loans allow for as low as 3.5% down.
Rule: Buy at the top of your pre-approval amount.
Reality: Remember, you’ll want to keep in mind maintenance, repairs and lifestyle expenses. Don’t max yourself out!
Rule: For home staging, use gray tones only.
Reality: Warm neutrals like beige, taupe and soft whites are in. Declutter your spaces and remember less is more. For a cozy feel, add greenery and baskets.
