Indianapolis Home Values Continue to Grow
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In the first quarter of 2015, pended housing sales in central Indiana increased 10.5% compared to the same period in 2014. In 2014 however, we experienced the famous “polar vortex” which allowed winter’s grip to keep its hold on the state through March.
We still believe that housing has recovered in central Indiana, considering that the Average Sales Price (ASP) of closed homes increased 4.3% during the first quarter. Of the eleven counties tracked, seven experienced ASP increases, led by Madison, Shelby and Hendricks Counties, all with double-digit gains over 2014. Marion County had a healthy 7.2% increase. Only Boone (-3.7%) and Hancock (-4.7%) counties saw their ASPs decrease.
The inventory of homes for sale continues to be an exception in the growth story. Overall, the number of available homes for sale as of April 1 decreased 5.6% compared to 2014’s first quarter. Of course, with the improving economy and increased consumer confidence, we still believe the “mix” of properties has strengthened, with fewer bank-owned and potential short-sale homes on the market. Of the eleven (11) counties in our survey, none saw an increase in inventory. In fact, inventory in Boone, Johnson, Madison, Montgomery, Morgan and Shelby counties were down double-digits. Marion County was essentially flat compared to a year ago.
With consumer confidence reaching levels seen prior to the financial and economic melt-down (now over 100 on the Consumer Confidence Index) and mortgage rates at or near historical lows (4%) we believe home sales will continue to be strong throughout central Indiana.
We hope you the Carpenter Reports and the data they provide helpful in your understanding of the central Indiana housing market.
