Is Indy over bought?

[Jeremy Johnson]

I've been watching the Indy market for about 2 years now and have been in the market for less than 6 months.  However, I have a lot of family here and grew up here.  That being said, I have seen a cautionary trend in the Indianapolis and surrounding markets.  I continue to see what I would classify as an investor property selling for 100-105% of Asking price.  This has happened on numerous properties that I have spoken with an agent about.  

A perfect example was a 4 plex listed as 2br/1 ba units near a bus stop that was "below rent" for the area.  They asked for 275k.  This property was next to a condemned property, the bus stop was for the redline and wasnt completed.  More telling was that the property wasnt a true 2 br/1 ba.  they had converted the kitchenet room into a br.  The room had no closet and now the unit had no kitchenet.  There is no way it could compete against a true 2br/ 1 ba for rent.  Also it was in a very bad neighborhood.  when i called the agent he confirmed my suspicions but said they had a full price offer from someone out of state.  This isnt the only property I've seen this on.  

Many properties are on the market less than 10 days and going for over asking price.  My primary market is Indy, but i've recently started shifting my focus to my secondary markets as Indy is over bought and red hot.  I still work with realtors, wholesalers, and look for off market deals, but otherwise I'm not interested in Indy currently. 

Have other people noticed the market being overly hot recently?  The worry is that rents havent increased at the same rate as property values over the short term.