Central Indiana Housing Market Rebounds from Polar Vortex
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The Indianapolis residential real estate market rebounded in the second quarter of 2014 from the “Polar Vortex” that froze out the market in the first quarter.
The data presented in the latest edition of Carpenter Reports illustrates marginally fewer pended and closed units than the second quarter of 2013, but significantly stronger numbers than the first quarter of 2014. Pended units were down 6.9% and Closed units were down 7.5% year over year. Three central Indiana counties actually reported stronger Pending numbers with Montgomery County leading the way with an increase of 9.5% year-over-year. Johnson and Madison Counties followed with modest increases.
The encouraging news is found in growing housing inventories. Listing units increased 3.0% year-over-year to 11,269 properties. This is the second consecutive quarter to experience growth in inventory. These growing inventory trends are indicative of a healthier housing market.
Another positive sign is the continuation of growth in the Average Sales Price (ASP). Prices grew 6.3% year-over-year on the heels of a 11.4% growth in the first quarter. This trend reflect both increasing homes values and a more “favorable mix” of the types of properties being sold. We are seeing more traditional mix of first-time and move-up homebuyers. With the exception of Madison and Monroe, every central Indiana County enjoyed growth in ASP during the second quarter of 2014.
At Carpenter Realtors® we continue to be optimistic about housing in central Indiana. The combination of improving inventories, rising home values and continuing low mortgage rates set the stage for strong future home sales. As we have said so many times before in this report, the future of housing in central Indiana continues to be a bright one.
We hope you find this quarterly edition of Carpenter Reports and the insight it might provide useful in your understanding of our housing market.
