As we start the new year, there is a buzz of excitement around the possibilities of 2022. If we are being honest, anything is better than these last few years, am I right? Well, we are here to share that at least in the world of real estate, 2022 is looking up! National and local data seem to support a very positive outlook for Indiana’s real estate market in the coming year.
Indy is getting national attention…
According to Realtor.com, Indianapolis is ranked as the 4th best housing market in the nation positioned for growth in 2022. With an 8% lower cost of living than the national average as well as that appealing ‘small-town feel’, it makes sense that Indianapolis and the surrounding suburbs serve as attractive locations to settle down. Overall, Indiana is proving to be a potential-filled area for both in-state and out-of-state investors
Couple this with data indicating that the Metropolitan Indianapolis housing market is set to see a combined sales and price growth of over 20% and the excitement around Indy is palpable!
High levels of Investments continue
While National data shows promise for our great State’s general housing market, we also see similar trends in REI (Real Estate Investing) across the country. We saw the highest level of home flips in 2020 since 2006 and this number is only rising.
In 2020 Indianapolis investors saw an average ROI (Return on Investment) of 62.9% with a gross profit of around $63,000. While these numbers have slightly decreased since 2019, experts are confident that the Indianapolis market will continue to be a fruitful place for investors. Whether you chose to sell your property, rent it out to long-term tenants, or get into the vacation rental space, the data seems to support a good year for 2022 Real Estate investing in Indiana.
Changes in Financing
Another big change over the last few years is the way that investment properties are financed. Historically, investors utilized more traditional types of financing to purchase their properties, but today it seems that cash offers are winning out. This makes total sense, and the data supports it: in 2020 alone almost 60% of flips were purchased with all-cash offers. This indicates that more niche forms of financing, like private and hard money lenders, are becoming a useful tool to beat the competition and secure the property.
We at CPL want to help you do just that. We offer creative and tailored financial services that will give you the power of cash in this competitive market. Reach out to us today to learn more about how we can help you capitalize on these promising projections for Indy’s 2022 housing market!