2008 Central Indiana housing market continues to outperform national averages

Low prices contribute to sustained buyers’ market

INDIANAPOLIS – June housing statistics point to continued opportunities for buyers to take advantage of lower housing prices across the nine-county central Indiana region, while a decrease in available inventory reduces competition among sellers, according to pended sales statistics compiled by F.C. Tucker Company.

Bucking the national trend of record housing inventory levels, available local inventory dropped 6.6 percent in June with 19,412 homes on the market, 1,376 fewer homes than in June 2007. Boone and Hamilton counties, however, reported a slight increase in the number of homes available.

“While the market begins to correct itself, central Indiana home buyers are in a good position to find a house in their price range,” said H. James Litten, president of F.C. Tucker Company’s Residential Real Estate Services Division. “The average sales price is 5.1 percent lower for the first half of 2008 compared to the same period in 2007, with Morgan County being the only area to show a slight increase in average sales price.”

The average year-to-date sales price for a home in the nine-county area was $144,733, 5.1 percent less than what was reported in the first six months of 2007. The latest data from the National Association of REALTORS® (NAR) reported the national average year-to-date sales price was 8 percent lower than the same period last year, as of April 2008.

With the current sales pace, Indianapolis also leads national absorption rate with an approximately 8.5-month supply of homes for sale as of June, versus the NAR national average of 10.8 months, using the organization’s latest figures from May 2008.

June pended home sales in the nine-county area were down 18.3 percent compared to June 2007 with 2,296 homes pending. Pended sales during the first half of the year are down 13.9 percent compared to the same time period in 2007. So far this year, 13,719 pended home sales have been posted; 15,935 homes were pending during the first half of 2007.

The NAR predicts improved sales in the second half of this year due to better lending practices, an improving economy and a pending home buyer tax credit which could draw potential buyers back into the marketplace. “With Central Indiana ranking high on the affordability index and national ‘best places to live’ polls, we anticipate a brighter outlook going into 2009,” Litten said.

Pended single-family and condominium home sales

Active Listings - Inventory

# # #

Editor’s Note: All statistics were compiled by F.C. Tucker Company from a report drawn from Propertylinx statistics on July 7, 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.