The state’s housing market is set to turn a corner.

Although most commentary on the U.S. economy’s collapse focuses on a series of events occurring around October 2008: credit default swaps, oil speculators, margin trading as well as a host of other terms that don’t mean a lot outside Wall Street, the actual source of the problem occurred further back in time – in 2000.

Stable Is As Stable Does
Over the last ten years, Hoosiers have heard stories about the double-digit housing appreciation increases in states like California, Nevada and Arizona. Rapid development in these states made headlines, painting residential real estate as a strategy for making quick money. But when the market soured, a lot of people lot a lot of money – and their properties, too.
During that same decade, Indiana ranked near the bottom of the list in home price appreciation; however, unlike homes in California in Nevada which have lost nearly half their value on average, the average home price in Indiana has dropped a mere .04 percent since housing prices peaked in March 2008.

Now that’s not to say that certain communities in Indiana haven’t been hit hard. But overall, Indiana is strong and ready for recovery. However, it is highly doubtful that recovery will translate into a heyday of housing appreciation in Indiana – rather that the stability of Indiana home prices that weathered the boom and bust will continue on into the next decade.

Long Term Investment
The average Indiana home is worth more than it was in March 2009 – higher than five years ago and significantly higher than in 1991, according to a Federal Housing Finance Agency report from August.

Source: Indianapolis Star
Submitted by: Paul Caldwell