About Our Blog!
We added this Blog recently so we could share additional insights and information about the local real estate market with our clients and visitors. We hope you find the information interesting and useful. We may be irreverent at times or include links to other sites or articles of interest, so check back often for your dose of our Indy Real Estate Perspectives! 
Hey! Why Not Visit One Of Our Open Houses This Thursday!
September 15, 2009 – INDIANAPOLIS -- To help promote downtown living and give buyers another chance to tour downtown properties, we've joined a number of other real estate brokers in sponsoring a new series of "Third Thursday Open Houses" downtown. A list of homes open this Thursday, Sept. 17th can be viewed at a web site we are sponsoring: http://www.downtowndigs.com. This week, visitors are also invited to attend a reception at the Skyline Club atop One American Plaza downtown. Visit downtowndigs.com to learn more! Please drop in and bring along a friend!
We Hope You Enjoy Our Most Recent Site Enhancment!
September 14, 2009 – INDIANAPOLIS -- We continue to get positive feedback about how easy it is to use our site. People say it's clean, simple, and easy to navigate. This weekend, we changed the photos are presented, making it faster and much easier than before. Clicking on any thumbnail gets you a larger version that really showcases the home's space and finish. Now you can easily click through the home with your arrow keys on your computer, pausing to take in as much space and detail as you like. We also have a client access feature that allows our sellers to post and host their own open houses! We like to think we are ahead of the curve in many respects. We're committed to providing excellent service to all our customers and clients, whether they are buying or selling their first home, or whether they've been a part of our family business for years!
IBJ Ranks Flocks Among Indy's Top Ten Agents For Third Straight Year!
August 30, 2009 – INDIANAPOLIS -- Building upon over 54 years of experience as REALTORS®, Kate and Kurt Flock were honored for the third consecutive year with a Top Ten All Star Agent ranking by the Indianapolis Business Journal! Kurt has over 32 years experience of marketing, buiding, and restoring Indianapois homes – principally in Indy's downtown and historic urban neighborhoods. Kate joined Kurt in opening Flock Real Estate Group in 1987 and has over two decades of similar experience. The Flocks have been intimately involved with the redevelopment of Indy's historic neighborhoods and are widely viewed as Indy's most accomplished downtown brokers. Kate added, "We owe our longevity and success to the support of hundreds, if not thousands, of the clients, friends, and neighbors who've shared our passion for downtown living over the years. Making the IBJ's Top Ten list is not easy, because we compete agains agents selling more expensive homes in Geist, Carmel, and Zionsville. We're really excited to do this working in Center Township and the heart of Downtown ."
Root Canal, Colonoscopy, Or Home Loan Application?
August 27, 2009 – INDIANAPOLIS -- National Association of REALTORS® chief economist Lawrence Yun announced in July that 50% of all home sales in the country this year were short sales or foreclosures. For the mathematically impaired, that’s HALF! Now if you’re a lender, underwriter, or appraiser, you’ve been beat up pretty good because of your role in bringing the planet to the brink of financial chaos and collapse – with the help of clever wall street guys skilled at tranching mortgage backed securities and swapping credit derivatives. So to get even, the home buying torture chamber is now staffed by appraisers with vertigo, corseted underwriters who will flog your credit history, and a secondary lending market that will demand copies of your medical records, a DNA test, finger print, urine sample, birth certificate, verification of your sex and sexual preference, a valid driver’s license, passport, criminal background check, two year’s tax returns and your mother’s maiden name – before rejecting your loan app. Most folks would rather get a root canal or colonoscopy. The good news is we are here to fight the dragons, trolls, and troglodytes arrayed against your American Dream of home ownership, and fight we will! We’re selling homes because we know how to get deals done and we have fun doing it!
Indy Tops U.S. Housing Affordability Index
August 23, 2009 – INDIANAPOLIS -- The National Association of Home Builders / Wells Fargo Housing Opportunity Index (HOI) released August 19th shows Indianapolis once again the most affordable major housing market in America. The release noted that several smaller housing markets topped Indy in affordability, and that Kokomo, Indiana was the most affordable of all. Well, that may sound like good news, but one has to wonder if this ranking is also a result of the large number of foreclosure and short home sales take place in these markets. The National Association of REALTORS™ chief economist Lawrence Wu stated recently that approximately 50% of all sales nationally were either foreclosures or short sales. With the jobless rate climbing, some experts predict this trend to continue well into 2010, causing continued downward pressure on home values in many parts of the country. Many in the real estate industry are lobbying Congress to extend the $8,000 first time home buyer tax credit program for another year and extend it to all buyers in order to stimulate the trade-up market. Let's hope! You can read more about the Housing Affordability report here.
Market Psychology
INDIANAPOLIS -- It's understandable so many home buyers and sellers are wondering where the Indianapolis real estate market is going. If they own a home, they are wondering if they have any equity left. If they are buying a home, they wonder if prices have bottomed out. Folks can't help but to be influenced by the constant bombardment of horror stories of rampant foreclosures and plummeting home values, usually in places like Florida, California, or Las Vegas, etc. Of course it's always the most dramatic examples that make the news. The Indianapolis market is not immune from these influences, but many areas, including the downtown market, have not been severly impacted by the foreclosure phenomenon.
We track all sales in Center Township of homes, townhomes, and condos over $100,000. We'll post some interesting stats soon, but as an example, first quarter sales of all property types between $200,000 and $350,000 were off last year's first quarter pace by only two sales, hardly a meaningful difference. We've managed to stay busy, and have nearly $5,000,000 in closed and pending sales so far this year.
Kurt Flock was just quoted in an article appearing in the Indianapolis Business Journal Real Estate Weekly. The article was entitled: In recession, homebuyers' attitudes shifting. To read the article and more of Kurt's perspective, click here:
Virtual Tours Give Bed, Bath & Beyond A Whole New Meaning!
INDIANAPOLIS -- Those of you who read our ads in Urban Times know we like to have a little fun with the copy, so here's our latest missive. It was titled: Web 2.0 Takes Virtual Home Tours To The Next Level – We're Giving Bed, Bath & Beyond A Whole New Meaning. Here's the copy:
"In an effort to stimulate home buyers, we’ve come up with something way better than tax credits – web cams placed strategically throughout homes for sale that allow buyers to view not just the living room, dining room, kitchen, bedroom, and bath, but what goes on in these rooms! It’s one things to write flowery real estate descriptions about fabulous interiors and lifestyle options; we believe buyers will beat a path to a seller’s door when they can see what really goes on in the cozy confines of the ol’ pieds-à-terre! We’ve dubbed this program Takin’ Offers, and Oprah Winfrey has expressed interest in having our first participants on her show. In a written statement President Obama expressed support for Takin’ Offers, calling it “change people can see in.” Of course, until we find the first taker-offers, home voyeurs will have to content themselves with our web site’s excellent still photography. Oh well..." [You just can't take any of this too seriously!]
Home Buyer's Prayers Answered...
INDIANAPOLIS -- Smart money pulled out of the stock market over a year ago. Smart money put off home buying until prices dropped. Smart money waited until property taxes were capped at 1% of market value. Smart money waited until mortgage rates plummeted below 5%. Smart money waited for new first time home buyer tax credits. Smart money says it’s time to get back in the game. So what are you waiting for – Moses to come runnin’ down Mount Sinai with an 11th Commandment: “Thou shalt not covet thy neighbor’s interest rate, so go Ye now and buy a condo.”
If that’s what it takes, one of us will dress up in a robe and beard and run down Crown Hill Cemetery with a bota bag in one hand and purchase contract in the other (and it probably won’t be Kate). Hey, what ever it takes to keep your money smart! With interest rates under 5% and a great selection of homes available, anyone who's unlikely to get fired in the next twelve months should buy a home. Think of it as your patriotic duty. There are some seriously good buys out there, and from talking with other Realtors, the spring market is starting to pick up – at least in Indy.
Buy A Home in 2009? Yes You Can!
“Yes We Can” speaks to our own spirit and optimism about the economic health of our community and the future of home values in our city’s neighborhoods. Nuts, as lousy as the housing market was last year, we were one sale short of $25,000,000 SOLD! We believe the national housing bust that began in ‘07 peaked in ‘08. We expect to see higher unemployment, more business closings, and continued pressure on home values until supply and demand are in balance. Our country’s population is increasing, and people have to live somewhere! Perhaps that’s why we sold 3 homes the freezing week before this ad deadline. Perhaps it’s because interest rates are at historic lows! Perhaps it’s because so many sellers have lowered prices to attract buyers! Perhaps it’s because property tax relief is phasing in. Perhaps it’s because others see, as we do, that now is a moment of opportunity!
Kurt Flock Named "2008 Neighbor Of The Year" By Old Northside, and
Receives Community Service Award from Mayor Greg Ballard
In a ceremony today at the Indiana Historical Society downtown, Kurt Flock joined 20 others in receiving a 2008 Community Service Award from Mayor Greg Ballard. The awards are given in recognition of volunteer service to citizens nominated for their contributions toward neighborhood and community improvements. This past summer Kurt noticed trees lining Old Northside streets and sidewalks were "looking overgrown and raggedy". In addition, low canopy was preventing street lights from illuminating sidewalks in many locations, so Kurt sought the help of several seasoned Old Northside volunteers for a neighborhood-wide tree trimming campaign that ended up lasting over two months. "Many residents helped in the effort, and the Old Northside owes a special thanks to them, especially Lynn Molzan, Don Hennenfent, Ann Holmes, Mike Burger, Rob Titlow, Doug Sapp, and Scott Kleiman who were regulars in showing up, come rain or shine, to help trim limbs, stack branches, sweep debris, pull weeds, spread mulch, and otherwise help make the Old Northside a better place to live," Kurt said. In addition to the work, Flock Real Estate Group provided up front funds to pay for commercial chippers to haul away debris. Kurt then went on to raise over $4,000 in contributions from neighbors and businesses to help pay for project expenses. "We owe Indy Parks and Keep Indianapolis Beautiful a HUGE thanks. Indy Parks provided chippers that worked behind us removing piles and piles of limbs and debris from the neighborhood. Without their help, we'd have been up a creek, or at least in front of the Board of Health." Nearly 40 households and businesses contributed a total of $4,000 to help fund the beautification project. Kurt estimates that neighbors contributed over 400 hours of volunteer time to the project. In recognition for his role in initiating and leading the project, Kurt was also named "2008 Neighbor of the Year" by the Old Northside, Inc. in December. Kurt and Kate Flock have both served as President of the Old Northside, Inc. and in numerous other volunteer roles contributing toward the revitalization of Indy's many historic urban neighborhoods.
So What's Up With Home Values?
One of our clients said recently, “I thought real estate might not be a good place to have my money ... until I looked at my 401(k)”. It’s true credit-linked notes, collateralized debt obligations, credit default swaps, and tranching (see http://en.wikipedia.org/wiki/Tranche) have wrecked havoc on global credit markets and undermined confidence in our banking and investment systems. It’s true also that home values have taken a hit as confidence in the economy has weakened, credit’s tightened, and demand for homes has fallen, but Indy home values have not taken the hit the stock market has recently, and there are some good buys available now – if you know where to look! The Wall Street Journal this week published an entire section on what's happening with home values. It included insights we thought were worth sharing, so here's a link to an article entitled "The Future for Home Prices": http://online.wsj.com/article/SB122764977315457619.html. We know where to look for good buys, and with over 50 years of helping people buy and sell homes, we offer experience you can depend on and advice you can trust – good things to have on your side in a crazy market!
LEASING & LEASE-OPTIONS INCREASE IN POPULARITY DUE TO SLUGGISH SALES
Read an article quoting Kurt Flock on this subject in the Indianapolis Business Journal's RealEstateWeekly Dec. 2, 2008.
Home Marketing Requires Team Effort
There are many things a homeowner controls that REALTORS® do not, such as access to the home, its day to day condition, and ultimately the sale price an owner is willing to acccept. But successful home marketing requires a team effort. When is the last time your broker advised you to lower your list price, or to strip that dated Victorian wall paper, or to get rid of that horrible blue carpet or that hand-me-down bedroom furniture? In this market, you have to have EVERYTHING working in your favor. People buy on emotion. What's the emotional appeal of your home? Can you evaluate this objectively? Are there lingering pet odors? When's the last time you cleaned your windows inside and out? Have you cleaned your light bulbs lately (dusty light bulbs can dim a room)?! Have you let these sort of things slide because you've been on the market for a long time and become discouraged? Well now is the perfect time to take a fresh look at your over all presentation. Buyers are still buying homes, and if your marketing effort has grown stale, then it may be time for a fresh approach. We have an extensive check list of items that we review with our clients to make sure they have EVERYTHING WORKING IN THEIR FAVOR! We are general contractors, award winning builders, and accredited home staging professionals. We provide our clients innovative advice and strategies to enhance the value of their home and reduce marketing time! Maybe it's time to give us a call and consider a fresh approach to solving your unsold home problem. We're selling homes!
Weekly Price Reductions Create Interest In FlockBay Homes
Several months ago we introduced a new concept in home pricing. We launched “FlockBay” on our web site and persuaded several of our clients to try weekly price reductions, some as high as $2,500, to increase interest in their homes. New Price means better value, and we’ve been pleasantly surprised by the success of this strategy. Most of the homes listed on FlockBay have sold despite a slow market. Often the worst thing a seller can do is nothing, and too many brokers let it go on because they don’t want to tell sellers they made a mistake listing their home too high! We provide our clients with detailed market sales and absorption data to back up our recommendations. We are general contractors, award winning builders, and accredited home staging professionals. We provide our clients innovative advice and strategies to enhance the value of their home and reduce marketing time!
An Interesting Segway To New Condos In Herron-Morton Place
Herron-Morton Place is one of downtown's most popular historic neighborhoods. This coming Sunday, from noon to 6:00 p.m., area residents are hosting a neighborhood Home Tour. The tour will feature a variety of interesting homes and condominiums. We have many friends in Herron-Morton Place, and we like the area very much! If you are looking for somethng to do this Sunday, you should consider attending. We will have at least two homes open during the tour: 1630 N. Delaware Street and 2143 N. Delaware! An interesting new condo project on Talbott Street is set to have its Grand Opening the following weekend, Friday, September 12th. Find out what Kurt Flock had to say about this new project in this week's IBJ Real Estate Weekly.
What Does Our Competition Know That We Don't About Market Value?
We lost a couple of listings recently to one of our competitors. In both instances, the older, existing, unsold homes had been on the market with other companies. The owners couldn't understand why they weren't getting showings or selling. We were very direct in our critique of each home's condition. We suggested significant price reductions and asked each owner to correct defects or make other changes to enhance their presentation. We set conditions upon taking the listings. We have to believe in the intrinsic value of the homes we are marketing in order to represent them to buyers who depend upon us for advice. This is does not compromise serving our sellers; it serves them better, because buyers are the ones out there doing the shopping, and they know a pig with lipstick from a little black dress. They visit competing homes in search of the one that best meets their needs and is the BEST VALUE. Giving a seller tough advice so they can appeal to buyers is especially important in a slower market like the one we're in. We provide our sellers with a plan, a strategy, and an extensive checklist of things to do to enhance the value of their home. Following our advice typically results in a quicker sale at a higher price. When we lose a listing to competition that offers hope and blue sky instead of a solid plan and advice that makes sense, we have no regrets. Not everyone is ready to acknowledge the tough realities of the current market. We just don't think it helps anyone to have for sale signs in the front yard forever!
How Lonely Are You Surfing Our Web Site! Not Very!
Since launching our enhanced web site July 11th, we've enjoyed over 4,600 visits. We've also had over 114,000 page views! Visitors are averaging nearly 25 page views per visit, and they are staying on our site for nearly six and a half minutes. That's called a "sticky" site. We've also made it easier for people to see what's changed on our "Site Updates" page under PROPERTY LISTINGS menu. Early next week we'll post some very interesting stats about the downtown market. For example, sales of homes in condos in the $350,000 to $750,000 price range is down over 65% from last year. Wouldn't it be good to know the facts when you are making your own real estate decisions!
Renting Your Home During A Slow Sales Period Can Make Good Sense!
It's not unusual for an owner, particularly one that's already moved to another house, condo, or city to consider renting the residence they have listed for sale. There are pluses and minuses to renting your home. The most obvious pitfalls are the wear and tear on the home and the unknown costs of fixing the home back up to high enough quality standards so it will appeal to buyers again, after the present tenants leave. The most obvious benefit is that rent will help offset any mortgage payment, and tenants typically take over utility payments. We recently helped several of our clients source quality tenants for their property. We show the property, take the application, negotiate the lease, run credit reports, verify employment and previous rental history, and do a criminal background check. The result of this due diligence is that we weed out problem tenants before they move into the home (remember the movie: Pacific Heights?!)
The best of all situations may be to convert a tenant into the home buyer. Often tenants want to "try it" before they buy it, or they may be waiting for a promotion, inheritance, or a home to sell. Circumstances may vary, but it may make sense for homeowners to rent to a buyer and structure their lease with economic incentives to induce the tenant to buy the home. Usually this is crediting a significant portion of the rent toward a tenant's down payment. [Update 12-4-08: Read an article quoting Kurt Flock on this subject published in the Indianapolis Business Journal's RealEstateWeekly Dec. 2, 2008]
We are skilled at structuring a wide range of leases, lease-options, and lease-purchases. If you want to expand our marketing options, give us a call. The current housing market demands that you work with an experiences broker offers creative and multi-faceted strategies to get you where you want to be.
Supply and Demand in Center Township Impacts Sales Statistics
Here's some interesting sales stats covering the first six months of 2008 for Center Township, a 42.68 square mile area in the heart of Marion County. Center Township is bounded by 38th Street on the north, Emerson Ave. on the east, Albany St. and Troy Ave. on the south, and Belmont Ave. and White River on the west. The statistics are derived the Broker Listing Cooperative™ of the Metropolitan Indianapolis Board of REALTORS®.
• There were 1,191 residential sales from Jan. 1 - June 30.
• 192 or 16.12% of that total were sales over $100,000
• 40, or 3.36%, were over $300,000
• 17, or 1.43%, were over $400,000
• 10, or .0084% were over $500,000
• Only 2 sales were over $1,000,000.
• There are 2,050 active listings in Center Township as of July 15, 2008..
• 664 of those are over $100,000. This count does not include 100+ homes (mostly condos) in new projects where the developer has not entered every unit in the BLC™.
• 116 are listed between $300,000 and $400,000
• 23 properties went pending in the last six months that were listed between $300,000 and $400,000. The present absorption rate in this price range makes current inventory the equivalent of a 2.5 year supply.
Sales statistics such as these should be taken into account when pricing a home. Absorption rates and the number and location of competing properties impact home values as much as condition, curb appeal, deferred maintenance, and dated decor, etc. A seller's motivation is an important factor in positioning a home among its competition as well.
The Indy Real Estate Market Will Rebound Sooner Than Others!
Like many areas of the country, Indianapolis saw a general slow down in area home sales last summer. The slow down worsened as many buyers found it difficult or impossible to obtain financing due to the sub-prime mortgage meltdown. Making matters worse, many Hoosier home owners were hit with crazy property tax increases. These events had a chilling effect on home buyers. The Spring market is showing signs of life and recovery however, and we believe the worst may be over. There are reasons for optimism
• Interest rates remain low and lenders are becoming a bit more aggressive in pursuing qualified home loan borrowers.
• The number of homes on the market remains high, providing buyers with a good selection.
• Many sellers have discounted the price of their home to entice buyers to take a closer look.
• Many sellers also are improving the condition of their homes by making repairs and offering home warranties or other incentives.
• The 2008 Indiana General Assembly passed property tax reform that will provide meaningful, permanent property tax relief to home owners. Property taxes will be capped at 1% of a home's assessed value when fully phased in in 2011.
• The central Indiana economy is diverse and remains relatively stable. A November 7, 2007 article on CNNMoney.com predicted "Home values should increase slightly in Dallas, Indianapolis, Cleveland, and a few other locales the bubble missed."
Downtown Now The Coolest Place To Live.
A May 16, 2008 article in the Indianapolis Star reported "more people want to live Downtown, driving the (apt) vacancy rate to the lowest since 1996." George Tikijian, a broker for Tikijian Associates Multihousing Investment Advisors added, "Downtown, I'd say, is now the coolest place to live."
CNNMoney.com Ranks Mass Ave. The 20th Best Place To Retire In US
A recent article on CNNMONEY.com named Indy's Massachusetts Ave. corridor as The 20th Best Place To Retire In US calling it a "great eclectic stretch"! Wow!
DOWNTOWN INDY WILL HOST SUPERBOWL XLVI IN 2012!
NFL officials awarded Indianapolis the rights to host Super Bowl XLVI, further enhancing Indianapolis's growing reputation as world class city and community that knows how to host major sporting events. During Super Bowl XLVI, Downtown Indy will be transformed into a festive, Olympic village type atmosphere. We are proud to be charter members of Indianapolis Downtown, Inc. and to actively support continued development Downtown in ways that makes hosting a Super Bowl possible! We live, work, and play Downtown. Now we get to walk to a Super Bowl!
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