Indiana Housing Market Recovery Builds Momentum
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The central Indiana housing market continued to build momentum through the first quarter of 2013. The first quarter saw double-digit increases in housing units pended and closed as well as strong growth in the average sales prices of closed units. Despite the impact of the uncertainty of the “fiscal cliff.” Hoosiers closed the sale on 22.5% more homes in central Indiana in the first quarter of 2013 than in the same quarter of 2012.
Pended homes sales saw a 13.7% increase. Shelby County led the way with a 49.5% increase; Morgan County saw a 36.3% jump; Johnson County increased 23.2% while Marion County experienced an 8.9% increase year-over-year.
In addition to the number of housing units purchased rising, the average sales price (ASP) in 8 of the 11 Counties surveyed rose. The average increased 5.3% with the strongest gain found in Marion County at 12.7%
At the same time, the inventory of homes on the market in the year-over-year comparison continued to pull back, shrinking another 17.1% during the first quarter. This continuing “draw-down” of inventory has quickly shifted the central Indiana housing market from a buyers market to the beginning of a sellers market. Marion County, the largest, dropped another 15.6% after dropping 15.9% in the fourth quarter of 2012. We believe this reflects a continuation of bank-owned and distressed properties working their way through the market and being absorbed by investor-buyers. With their departure and the relative slowness of the new home construction industry to fill the developing void, we believe the sellers market will continue through the summer months and possibly into 2014. Its a great time to be thinking of selling your home and buying another property.
These continue to be very good signs for real estate and reflect a continuation of the trends we’ve been tracking over the past 18 months. In fact, these trends are building momentum as we begin the second quarter.
At Carpenter, we are enjoying growing optimism about the future of housing in central Indiana. We do anticipate some mild volatility as the Federal government works through their fiscal issues, but do not see a derailment of the momentum already established.
You can find details on each county’s activity in the latest edition of Carpenter Reports. I hope the data it provides helpful in your understanding of the central Indiana housing market.
