Indianapolis Market Watch for April 2008

2008 Inventory of homes on the market show decline

Sales continue at slower pace

INDIANAPOLIS– While home buying during the spring season is somewhat behind last April, the inventory of homes for sale in central Indiana continues to decline reflecting less new home building and continued “wait on the sidelines” home sellers, according to pended sales statistics compiled by F.C. Tucker Company.

April pended home sales in the nine-county area were down 14.1 percent compared to April 2007 with 2,520 homes sales pending. Pended sales during the first four months of the year are down a total of 11.7 percent compared to the same time period in 2007. Overall, 8,926 pended home sales have been posted; 10,110 homes were pending during the first four months of 2007.

The average year-to-date sales price for a home is $139,629, 5.4 percent less than what was reported in April 2007.

Available homes for sale inventory dropped 1.8 percent in April with 18,996 homes on the market, 354 fewer homes than in April 2007. Madison County experienced the greatest decrease in inventory at 9.3 percent.

“The continual drop in inventory is a good sign for the overall market,” said H.James Litten, president of F.C. Tucker Company’s Residential Real Estate Services Division. “It’s a strong signal that our local market is continuing the process of balancing out demand and supply.

“The decline in inventory, along with fewer new homes under construction and solid mortgage rates, will help in our recovery. Despite April figures, we are seeing a decent number of prospective buyers attending open houses and showing interest in the many homes on the market. These are indications that the central Indiana housing market is showing progress.”

Of the nine counties F.C. Tucker tracks, Shelby County was the only one to experience an increase in pended sales compared to April 2007. The rise in sales is due, in part, to the thriving employment and construction at Indiana Downs in Shelbyville and the Honda Plant in nearby Greensburg.

“This area of the state will certainly experience continuous growth in home sales over the next few years,” said Steve Allen, principal broker and owner, F.C.Tucker, Shelby & Decatur Counties.

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Pended single-family and condominium home sales

Active listings

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Editor’s Note: All statistics were compiled by F.C. Tucker Company from a report drawn from Propertylinx statistics on May 8, 2008.