Indianapolis Market Watch

Decreasing housing inventory and stable sales prices assist sellers, but still a buyers market

INDIANAPOLIS – While overall pended home sales remain lower on a month-to-month and year-to-date basis in central Indiana, two Indianapolis-area counties reported higher sales than the same time last year, according to pended sales statistics compiled by F.C. Tucker Company.

Both Madison and Boone counties showed increased sales in July. Madison County sold 171 homes this month, for an 11.8 percent increase, while Boone County sold 89 homes for a 6 percent sales increase compared to the same time last year.

Housing inventory in central Indiana continued to drop in July with 19,335 homes on the market in the nine-county region, 1,534 fewer homes than in July 2007 – a 7.4 percent decrease overall in inventory. Madison County’s inventory led the monthly decline with a 12.4 percent decline. Marion County’s inventory also declined in double digits with a 10.7 decrease this month.

The nine-county average sales price was $146,572, overall 5 percent lower compared to the same time last year. However, two counties, Boone and Hamilton, are within one percent of the same average sales price as last year, and three other counties, Madison, Morgan and Shelby, are within two percent of the average sales price from the same time last year.

“While the central Indiana real estate market continues to stabilize and even improve in a couple of submarkets, home buyers are still in a good position to find an affordably priced house throughout the Indianapolis area,” said H. James Litten, president of F.C. Tucker Company’s Residential Real Estate Services Division.“Sellers, too, should be encouraged by the fact that central Indiana homes are maintaining their value, and buyers are paying on average 95 percent of the sellers’ asking prices in central Indiana.”

Overall, home sales in the nine-county area are down 8.9 percent compared to July 2007, and 13.1 percent for the year to date.

Litten said, “The recent passage of the housing stimulus bill should help with our real estate market recovery and greatly benefit first-time home buyers with the $7,500 tax credit.”

The National Association of REALTORS® (NAR) predicts 2.5 million first-time buyers in the market because of the tax credit, which could increase home sales nationally by 7 percent.

Pended single-family and condominium home sales

Active Listings - Inventory

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Editor’s Note: All statistics were compiled by F.C. Tucker Company from a report drawn from Propertylinx statistics on August 8, 2008. Pending means the sales contract has been signed,but the transaction has not closed. According to the NAR, pending sales typically are finalized within a month or two of signing.