Ryan Hart

2009 Home sales in some areas of Central Indiana on the rise

Five of nine counties show increased sales over March 2008

INDIANAPOLIS – Home sales in Central Indiana are starting to improve in some areas of Central Indiana as the spring home-buying season begins. According to pended sales statistics compiled by F.C. Tucker Company, nearly 2,300 Central Indiana homes pended in March, with five of the nine counties reporting significant increases compared to the same time last year.

Madison County posted the highest pended home sales increase over March 2008 with 33.6 percent, followed by Boone County with 30.5 percent. Other counties showing a rise in sales included Johnson County (14.6 percent), Hancock County (11.7 percent) and Hendricks County(9.9 percent).

“We hope the encouraging March numbers in select areas of central Indiana are an indication the local housing market is gaining momentum, and will continue to improve throughout the year,” said H. James Litten, president of F.C. Tucker Company’s Residential Real Estate Services Division. “We are seeing more prospective home buyers, especially in the first-time buyer category, come off the sidelines and take a look at the inventory available. We are pleased to see overall Central Indiana inventory declining significantly, a 15.6 percent decrease over last year at this time. Less inventory and increased demand brings better balance and more consumer confidence to the market.”

To date, 5,466 homes have pended in 2009, 14.1 percent less than the same time in 2008. The average sales price is down 12.4 percent from March 2008, decreasing from $140,878 to $123,461.

Available homes for sale in the nine-county region dropped 15.6 percent in March 2009 with 15,562 homes on the market, 2,881 fewer homes than in March 2008. Four counties experienced above average inventory declines. Marion County experienced the greatest decrease in inventory at 21.4 percent, followed by Hendricks County with 19.3 percent, then Madison County and Shelby County with 18.7 percent and 17.6 percent, respectively.

Pended single-family and condominium home sales

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Active Listings over Time

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2009 Two Central Indiana counties report increased sales in February

Available inventory in the nine-county region continues to drop

INDIANAPOLIS – More than 1,600 Central Indiana homes pended in February, with two counties reporting significant increases compared to the same time period last year, according to pended sales statistics compiled by F.C. Tucker Company. Madison County posted a 14.7 percent increase, and Boone County sales rose 11.4 percent.

February pended home sales in the nine-county area were down 20.6 percent with 1,643 homes pending compared to 2,069 in February 2008. Year to date, overall pended home sales are down 19.6 percent compared to the same timeframe in 2008.

Available homes for sale in the nine-county region dropped 14.3 percent in February 2009 with 15,377 homes on the market, 2,566 fewer homes than in February 2008. Three counties experienced significant inventory declines. Shelby County experienced the greatest decrease in inventory at -23.4 percent, followed by Marion County with -20.4 percent and Hendricks County at -17.2 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 strengthening.”

Tucker’s data also indicates that one Central Indiana county – Johnson County – saw an increase in average home prices for the second consecutive month, compared to January and February of last year. Homes in Johnson County sold for an average of $141,208 in February 2009, compared to $135,178 the February 2008, a 4.5 percent increase in the average home sales price.

“Conditions have been improving for home buyers,” said Litten, “Improved affordability, low interest rates and first–time buyer tax credits are catching the attention of buyers who may have otherwise waited on the sidelines.”

Pended single-family and condominium home sales

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Active Listings over Time

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2009 14 percent decrease in homes for sale is good news for homeowners

Buyers and sellers both encouraged by recent changes

INDIANAPOLIS– Available homes for sale in the nine-county region dropped 14.5 percent in January 2009 with 2,613 fewer homes on the market than in January 2008. Total homes available for sale in January were 15,415, according to active listing statistics compiled by F.C. Tucker Company. Hendricks County, Shelby County and Marion County experienced the greatest decrease in inventory, with -22 percent, -20.5 percent and -19.7 percent, respectively. With fewer homes on the market, sellers are in a better position to transition to another home.

First-time home buyers also received good news this week with President Obama’s signing of the American Recovery and Reinvestment Act which includes a revised first-time home buyer’s credit effective for home purchases from Jan. 1, 2009 to Dec. 1, 2009. Differences from the 2008 first-time home buyer’s credit include no repayment and credit recapture on the sale within three years of purchase.

While the average number of pended homes sales in Central Indiana was down 19.2 percent overall in January 2009 compared to the same time last year, one Indianapolis-area county reported higher sales. Morgan County showed improvement over other counties in the nine-county region F.C.Tucker surveys, reporting a 9.1 percent increase in home sales.

This past January, 1,562 homes sold (pended) in Central Indiana. One year ago in January 2008, Central Indiana consumers purchased 1,934 homes. Litten said, “There’s still a great deal of buying activity, but it is still not at the levels we have come to expect.”

“As we move into the busy home-buying and selling season of spring, I expect more first-time home buyers will enter the market to take advantage of the new $8,000 tax credit,” said H. James Litten, president of F.C. Tucker Company’s Residential Real Estate Services Division. “I’m also hopeful that Central Indiana’s competitive home prices, coupled with efforts by the Federal government to stimulate the economy, will boost consumer confidence and motivate consumers to get off the sidelines.”

Tucker’s just-released data also shows that two Indianapolis areas saw increases in average home prices. Homes in Johnson County sold for an average of $154,239 in January 2009, compared to $136,042 in January 2008, a 13.4 percent increase in the average home sales price. Also, Boone County showed a 3.1 percent increase in home sales price, bringing the average homeprice to $291,058.

As the tax season nears, Litten reminds buyers that there are additional advantages to purchasing a home. “Beyond the mortgage interest and real estate tax exemptions on your tax returns, homeowners may also qualify for residential energy credits of up to 30 percent of the cost for certain home improvements, including equipment and installation for solar electric power, solar water heating, wind energy and more," said Litten.

Active Listings -Inventory

Pended single-family and condominium home sales

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Three Central Indiana counties see increase in home sales

Decreasing housing inventory, stable sales prices assist sellers, but still a buyer’s market

INDIANAPOLIS – While overall home sales remain lower on amonth-to-month and year-to-date basis in Central Indiana,three Indianapolis-area counties reported higher sales in December 2008 thanthe same time in 2007, according to finalized pended sales statistics compiled byF.C. Tucker Company. Hancock, Johnson and Marion counties showed improvementover other counties in the nine-county region F.C. Tucker serves.

Available homes for sale dropped 14.3 percent in December 2008 with 2,605 fewer homes on the market than in December 2007. Total homes available for sale at year-end were 15,600. Marion County and Hendricks County experienced the greatest decrease in inventory at 19.2 percent each.

Current interest rates are hovering around 5 percent for a 30-year, fixed-rate loan, and with the Federal Reserve’s MBS (mortgage-backed securities) buying program in full swing, many experts believe that mortgage rates will stay down for the foreseeable future.

“We continue to be encouraged by the decline in inventory in Central Indiana,”said H. James Litten, president of F.C. Tucker Company’s Residential Real Estate Services Division. “As available inventory declines, we hope to see pricing firm up. Also, as interest rates remain historically low, consumer confidence will continue to grow.”

Homes remained on the market an average of 92 days in December, only a 2.2 percent increase comparing year-to-date figures from 2007 and 2008. Four counties – Hancock, Hendricks, Johnson and Madison – showed a decrease in days on the market, compared to December 2007. Madison County boasted the largest change, shaving off an average of six days on the market.

Madison County also showed a 7.4 percent increase in average home sales price in December 2008, compared to December 2007. Home inventory in the county decreased 7.9 percent over the same time frame. Litten is optimistic the trend will continue into 2009.

Pended single-family and condominium home sales

Active Listings -Inventory

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