The Headline Said "Home Sales Up In LaGrange County" Indiana- But What Does That Mean?

The Headline Said "Home Sales up in LaGrange County" Indiana-But What Does That Mean?

When I saw the News Sun Saturday morning with a headline proclaiming sales were up in our county, I wasn't suprised. I know the number of sales has been improving. We've been very busy working with homebuyers. The number of homes that sold in June 2009 (12) was higher than the number of homes that sold in June 2008 (8). Not a big difference by any means. So, the headline is true because 4 more homes sold this June than last June.

Then the article goes on to state that the median home price for June 2009 ($147,250) was 35.7% higher than the median home price for June 2008 ($108,500). If you don't work in our market every day and aren't familiar with how the statistics are compiled, that sounds like great news for the housing market in LaGrange County.

But lets take a look at the rest of the numbers and the sales that are represented in those figures. In 2008, 3 of the 8 homes that sold were lake properties. In 2009, 7 of the 12 homes that sold were lake properties. Lake properties generally have higher sales prices. And when you are calculating the median sales price, you're taking the number in the middle. That means 1/2 sold for more and 1/2 sold for less. In 2009, the median price was a lake home. In 2008, it wasn't.

When dealing with such a small number of transactions, it's more accurate to use longer periods and more data to establish a trend. Why don't we take a look at what has happened through the end of June this year and compare that to last year? I think that gives us a better idea of what is happening here in the county.

*The Median Sales Price through the end of June in 2008 was $110,000 and in 2009 it was $98,500. This is a 11.2% decrease in Median Sales Price

The Number of Homes Sold through the end of June in 2008 was 48 and in 2009 it was 68. This is a 41.7% increase in the Number of Homes Sold

When we use a longer period of data, we get what I'm seeing in today's market. There are more transactions. The number of home sales are up in LaGrange County this year versus last year. But, median prices aren't higher, they have dropped 11.2% when compared to last year for the same time period. And when you compute this for just the lake properties, we've seen a similar decline.

Another important item is how many properties are listed for sale. As of today, there are 317 single family homes listed for sale in LaGrange County, and with an average of 12 sales a month, it is going to take awhile to bring the inventory down.

Taken out of context, the published numbers may have misled those who just read the headline or those who aren't currently involved in the buying or selling process. Part of my job as a real estate agent is to provide accurate market information to my clients. My sellers are well aware that the median house price in LaGrange County hasn't increased 35.7% since last year.

You can read historical and current data about our local market on my website. If you are thinking about buying or selling a home in Northeast Indiana, you can visit me online, call or text me at (260) 336-4663, or call the office at (260) 854-2414 ext 108.

*These figures are based on data supplied by the Northeastern Indiana Association of REALTORS® Multiple Listing Service for the period starting 01/01/2008 to present and include only single family or modular homes.