Indianapolis Market Watch for August 2008

2008 Central Indiana real estate market outperforms other regions of U.S.

August statistics point to areas with improved sales, overall shrinking inventory of homes for sale

INDIANAPOLIS – The Midwest continues to outperform other regions of the country, such as the Northeast and West, beleaguered by real estate challenges. Pending home sales in the Midwest showed a gain of 2.8 percent in July compared to the prior year, according to the latest data from National Association of REALTORS®. The gain is a sharp contrast to other regions of the U.S., which are reporting declines between 7.5 percent and 10.6 percent.

The strongest central Indiana markets are Madison and Shelby counties, both of which reported strong sales in August compared to the same time last year, according to pended sales statistics compiled by F.C. Tucker Company. The number of homes sold in Hendricks County last month was nearly identical to August 2007.

Madison County showed a second month of increased sales, with 132 homes sold for a 10.9 percent increase over the same period last year.

The shrinking housing inventory in the nine-county area is helping sellers by increasing demand, while buyers are enticed by mortgage rates hovering below 6 percent. In August, 18,828 homes were on the market – a nearly 11 percent drop – from 21,127 homes available in August 2007. Madison and Marion counties’ inventory declined more than 15 percent.

The nine-county average sales price was $147,018, which is 5 percent lower compared to the same time last year. However, three counties, Boone, Madison and Shelby, all reported an increased average sales price, up to 5.2 percent higher.

“We are beginning to see more buyers in some areas of central Indiana and we’re hopeful more will follow,” said H. James Litten, president of F.C. Tucker Company’s Residential Real Estate Services Division. “They are showing us what we’ve known all along – Indiana is a great place to live, and now is a great time to buy.”

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 September 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.