2008 F.C. Tucker market analysis shows reductions in available housing inventory in 2008;

Predicts slight Central Indiana real estate market improvement in 2009

INDIANAPOLIS – Month after month, Central Indiana housing inventory steadily declined during 2008, with November showing a 13 percent drop, or 2,513 fewer homes on the market, compared to the same time last year, according to active listings statistics compiled December 8 by F.C. Tucker Company. Of the nine counties Tucker tracks, Hendricks County showed the largest decrease in inventory at -19.6 percent.

“As the number of homes available reaches a six-month supply in 2009, we will finally see a supply/demand correction of the local housing market,” said H. James Litten, president of F.C. Tucker Company’s Residential Real Estate Services Division. “Our current inventory is less than eight months, so the opportunity for central Indiana real estate to rebound gets closer and closer. Today, it remains a buyers’ market, and with low interest rates, more and more buyers are seriously looking.”

Tucker estimates that nearly 25,000 homes will be pended in the nine-county region by year-end. The average year-to-date sales price remained off 5 percent for the year; in November, the average price for a home was $145,014. Tucker estimates that the 5 percent decrease in the average sales price will track through December. Litten said, “Central Indiana’s housing afford ability index, according to the National Association of Home Builders, is one of the best in the nation, and our afford ability bodes well for an earlier recovery than some areas of the country.”

Of the nine counties, Hendricks County showed the least decline in homes pended in November, with 6.9 percent fewer homes pended compared to the same time last year. Hancock County showed the highest decline in November with 16.4 percent fewer homes pended compared to the same time last year. For this year, home sales are down 11 percent.

“As we reflect on 2008 and the challenges facing our nation, and the Central Indiana real estate market in particular, we can take comfort knowing that economic downturns don’t last forever,” added Litten. “I believe efforts to reform the nation’s lending practices will strengthen consumer confidence in 2009. Moreover, Central Indiana continues to have a strong economic base of business activity and one of the steadiest real estate markets in the nation. I am optimistic that we’ll see improvement in 2009.”

¡        An increase in real estate sales in 2009 over 2008 numbers. According to panelists from Indiana University’s annual business outlook, Indianapolis should see more positive numbers for Indianapolis in the fourth quarter. Our market could rebound more quickly than other U.S.cities, primarily due to our nationally recognized affordability.  

Pended single-family and condominium home sales

Active Listings - Inventory