Del. Co, IN 3rd Quarter Real Estate Market Update

The third quarter market was slower in nearly every category. Unit sales were off nearly 16% from the same period in 2009 and our yr. to date units sold now lags 3% behind 2009. The average sale price of $87,706 is nearly 8% below the same period last yr. with smaller, lower priced homes comprising the bulk of the sales. Pending contracts, a reflection of future sales, are down around 20% from the same period last year indicating a further slowing of the market. Bright spots were the 11% reduction in foreclosure properties sold, days on market, or selling time improved by 2%, and the average tax to sold price ratio was down 11%, reflecting the full effects of the tax caps.

The remainder of 2010 is a cloudy picture. Normally activity declines in the 4th quarter, but interest rates remain below 5%. The overall inventory of homes for sale in Del. Co. remains lower than normal but there are a number of nice homes, especially in the $150-$200,00 range, at attractive prices and there has been recent activity for properties over $300,000. Another big unknown is the recent decision by major lenders to suspend foreclosures and foreclosure sales. This type sale has not been a factor in our area for homes above $100,000, but acounts for 43% of sales under $100,000.

Please remember that these are local results. As the national economic recovery continues, there will be widely varying situations in different parts of the country. Don't let the media or the NAR influence you by citing national numbers. Delaware Co. and Muncie remain one of the most affordable markets in the nation. Coldwell Banker's most recent survey of offices across the country places us in the top 10 nationally and #1 in cities hosting a University with a Div. 1A football program.