Ryan Hart

2008 Spring home sales off to slow start

Available inventory down slightly

INDIANAPOLIS – As the spring home buying season begins, pended sales in the nine-county region slipped in March while available inventory showed a slight decline for the first time this year, according to pended sales statistics compiled by F.C. Tucker Company.

March pended home sales were down 14.7 percent with 2,419 homes pending compared to 2,836 in March 2007. So far this year, overall pended home sales are down 10.1 percent from March 2007. Available inventory in March was 18,405, which is 158 fewer homes available than in March 2007.

“While the drop in pended home sales in March is higher than we anticipated based on February’s encouraging numbers, available inventory appears to be starting to balance out,” said Donna Kreps, executive vice president for F.C. Tucker Company’s Residential Real Estate Services. “Going into the spring/summer home buying season, we anticipate a sales spike as homeowners get back into the market, which continues to offer an excellent array of homes at affordable prices.”

The average sales price for a home in March was $140,098, 2.8 percent less than March 2007. Average days on market increased from 91 days in March 2007 to 106 days in March 2008.

By county, pended home sales in Hancock County was 31.6 percent less than in March 2007. Pended home sales in Morgan and Shelby counties were down 5.3 percent while sales in Hamilton and Marion Counties were down 21.2 percent and 9.6 percent respectively.

Pended single-family and condominium home sales

Active listings

Editor’s Note: All statistics were compiled by F.C. Tucker Company from a report drawn from Propertylinx statistics on April 8, 2008.

2008 Home sales on the rise

Five of nine counties show increased sales over 2007

INDIANAPOLIS – Home sales in Central Indiana are starting to improve as the spring home-buying season begins. February pended sales were up 0.9 percent compared to February 2007, according to pended sales statistics compiled by F.C. Tucker Company.

Overall, 2,132 homes were sold in February 2008 compared to 2,113 in February 2007. It is the first time since April 2007 that pended sales have shown positive growth, which could indicate that the local housing market is starting to rebound.

Along with an increase in total February sales, five of the nine counties in the Indianapolis area posted an increase over February 2007. Hancock County reported 25 more homes pending than in February 2007, a 46.3 percent increase. Pended sales in Shelby County jumped 21.9 percent compared to February 2007. Morgan County pended home sales increased 19.6 percent.

To date, 4,079 homes have been closed or are pending, 6.1 percent less than the same time in 2007. The average sales price is down 4.1 percent from February 2007, decreasing from $143,174 to $137,363. Homes stayed on the market an average of 108 days, an increase from 92 days in February 2007.

“We hope February’s encouraging numbers are an indication that the local housing market is starting to turn around,” said H. James Litten, president of F.C. Tucker Company’s Residential Real Estate Services Division. “We’ll continue to review sales activity over the next few months to determine if this is a positive trend and if we are starting to gain momentum toward stronger sales in 2008.

“Presently, we are encouraged to see more prospective home buyers come off the sidelines and take a look at the inventory available. It shows that consumer confidence is improving.”

Inventory is up 4.7 percent compared to February 2007. Litten said, “This may be an indication that more home sellers are entering the market in hopes of a strong spring-buying season.”

Pended single-family and condominium home sales

Active listings

2008 Home sales off to moderate start

One county shows increase over January ’07 figures

INDIANAPOLIS – Home sales in Central Indiana are off to a moderate start with 1,962 homes sold in January, down 12.2 percent from the 2,235 homes pended in January 2007, according to pended sales statistics compiled by the F.C. Tucker Company.

Of the nine counties in the Indianapolis area, Madison County experienced the only increase over January 2007 with a 9.6 percent spike in home sales. Home sales in Shelby County dropped 35.4 percent compared to January 2007.

The average sales price for a home in January was $133,671, 4.9 percent less than the average sales price of $140,485 in January 2007. Homes spent an average of 97 days on the market, three days more than January 2007.

Madison County’s inventory also decreased 13.4 percent compared to January 2007. Inventory in Hamilton County was up 5.7 percent, the most significant increase in the nine-county region.

Despite the slow start in 2008, home sales are likely to improve by mid-year as consumer confidence increases due to lower mortgage rates, less housing inventory and moves by the Federal government to stimulate the economy, said H. James Litten, President of F.C. Tucker Company’s Residential Real Estate Services Division.

“We are still experiencing a real estate market on the mend, but the situation should correct itself later in the year as more home buyers come off the sidelines. And they should,” Litten said. “With each passing month of moderate real estate sales activity, there is more and more pent-up demand from prospective home buyers waiting for the right moment. When that moment comes, the real estate market may well roar back to life. So buyers who have the financing are making their moves early.”

Pended single-family and condominium home sales

Active listings

Editor’s Note: All statistics were compiled by F.C. Tucker Company from a report drawn from Propertylinx statistics on Feb. 7, 2008.

Central Indiana home sales stabilize in 2007

Local housing market shows signs of growth in New Year

INDIANAPOLIS – While most large cities experienced a significant decline in home sales in 2007, central Indiana posted its fifth best year on record. Although overall figures are down 9.9 percent from 2006, residents in the nine-county region closed on more than 27,900 homes in 2007.

Central Indiana’s steady job market along with a slow down in new home construction and lower mortgage rates are indicators that local home sales are on track to strengthen in 2008. Bolstering the outlook are several national surveys and reports from sources such as PMI Mortgage Insurance and Global Insight that rank Indianapolis as stable and positioned to see an early strengthening of the local real estate market in 2008.

According to the latest forecast by the National Association of REALTORS®, nationally existing-homes sales are expected to hold fairly steady in early 2008 and then rise later in the year, continuing to improve in 2009.

“The Indianapolis area continues to have a flourishing economy with great affordability, improving our chances for increased home sales in 2008," said H. James Litten, president of F.C. Tucker Company’s Residential Real Estate Services Division. “Our local market was challenged in 2007 by a number of economic factors that affected consumer confidence, but I believe the worst may be over and, barring an economic downturn, residential real estate in the area should show signs of improvement by mid-year.”

Marion County experienced the most significant drop in home sales compared with 2006, down 11.5 percent. Although no county saw an increase in home sales in 2007, Boone County had the least decline with 0.9 percent compared with 2006.

Number of Homes Sold

*This is an average of all activity in the nine-county area, not an average of the other nine averages.

Average sale prices at year’s end in the Indianapolis area dropped 2.1 percent from 2006 to an average of $153,270.

Morgan County experienced the greatest increase in average sales price, up 0.3 percent. Sales prices in six of the remaining eight counties were within one percent of balancing out. Marion County experienced the most significant decrease in sales price, dropping 5 percent to $116,727. Hamilton County maintained the highest average price among the nine counties at $255,822.

Average Sales Price

*This is an average of all activity in the nine-county area, not an average of the other nine averages.

Homes spent an average of 89 days on the market, six days more than 2006. While most homes in the nine-county area remained on the market for more than 90 days, Hamilton County posted the least amount of days with 81. Madison County homes were on the market the longest with 106, two days more than 2006. Other counties with more than 90 days included Boone (91), Morgan (94) and Shelby (97). At 95, Hancock County’s average did not change.

Days on Market

*This is an average of all activity in the nine-county area, not an average of the other nine averages.

Residential real estate predictions for 2008

Jim Litten offers the following outlook for this year:

• Even in a year of significant foreclosures from the sub-prime debacle, the average sales price in central Indiana remained close to stable, decreasing 2.1 percent to an average of $153,270. This decline is not significant and reflects a market that is holding its value. Similar to other markets, the average sales price for a home in 2008 will fluctuate depending on where that home is located in central Indiana. Some counties have more inventory than others; some counties have more demand than others. The average sales price will rise or fall depending on location and demand. The local economy will also drive average sales prices as new companies develop or expand in area counties.

• Residential real estate inventory in 2008 will continue to decline, a trend that presents optimism for a balancing market in 2008. As new home production continues to taper off as it did in 2007, we will see a downward shift in available inventory, and that’s good news for sellers and the market. The year 2007 saw a decrease in new home construction, due to increased inventory, more buyer ambivalence and rising new home construction costs. We expect builders to continue reducing new home construction, while unloading their current supply of available homes.

• By the end of 2007, 30-year fixed mortgage rates in the Indianapolis market were at 6 percent and the Federal Reserve’s talk of a recession signals greater cuts are expected. This could benefit potential home buyers and those with adjustable-rate mortgages expected to reset in 2008. Interest rates will continue to be watched closely, particularly during the first two quarters of the year as the nation seeks to avoid an economic downturn of any significance. As a result, mortgage rates should go back and forth in percentage points, hovering around 6 percent. While this is not ideal, the bright spot is that Indiana is expected to come out of the foreclosure and mortgage crisis faster than other cities.

• An encouraging economic indicator, while slight, this year is the anticipation of a growing job market, which according to experts is expected to rise 1.6 percent this year. With a prediction of wage growth up 3.8 percent, our economy is expected to remain healthy in comparison to other Midwest states. More companies are coming into the area, particularly in areas like Hamilton County, creating more jobs and income in the local market. All of these improving factors will help improve home sales in the Indianapolis area. Increased business development also signifies a rise in corporate relocations as companies search worldwide to find the most talented employees.

• With the inventory that is available, this could possibly cause a surge of new investors entering the market seeking to strike on a great deal before housing costs start rising again. This is a great time to invest in a home if you’re willing to hold on to the property as the local market continues to balance out. We expect to see more investors entering the residential real estate market in 2008.