With the start of the New Year, market data can be tabulated for the past year via the Greater Northwest Indiana Association of Realtors Multiple Listing Service. While we can analyze this data at anytime during the year, I always enjoy examining the trends and trying to forecast what might take place in 2010. Here are some interesting results from 2009, when compared to 2008:
• Porter County had an average home selling price of $182,013.00, down 5% from 2008; Lake County had an average home selling price of $121,244.00, down 9% from 2008.
• In Porter County, the average days for a home to be on the market was 150 days, an increase of almost 30 days from 2008; in Lake County, the average days on the market was 136, an increase of 9 days from 2008.
• Porter County had a very slight drop in the actual selling price of a home compared to the list price, with an average of 95.2%, down a half percent; Lake County decreased 1% in the selling price of a home compared to the list price, with an average of 94.9%.
• The total amount of homes sold in Porter County in 2009 was 1,465, down 10% from 1,629 in 2008; the total amount of homes sold in Lake County in 2009 was 4,259, down 8% from 4,648 in 2008.
The market is continuing to show well-needed corrections, especially with the decrease in the average home selling price. With the amount of inventory on the market, prices need to continue dropping. I believe that this trend will continue in 2010, probably a lower percentage than this past year. While the average home selling price dropped 5% this past year, it dropped 3% the previous year. The amount of foreclosed homes on the market continues to increase, and this is driving prices down. We will see this trend continue into 2010.
While the average days for a home to be on the market increased in both counties, I believe that this average will level more this year. Potential homeowners are taking a longer time deciding on their new home, there is more inventory, and obtaining credit from lenders is more arduous.
There is no reason to be discouraged by the market data, above. This is a terrific time to buy property in Northwest Indiana! Home prices are very competitive, building materials are down, developers want to sell their land, the government is providing some terrific incentives, and interest rates remain at historic levels. Let's have some fun in 2010!