The Housing Market Remains Robust

Carpenter Reports 3Q 2015-1In our newest issue of Carpenter Reports, a quarterly recap of central Indiana housing sales, the housing market in central Indiana continued its robust performance during the third quarter of 2015, with a strong 16.3% increase in the number of homes closed. This is likely a result of continued historically low interest rates coupled with increasing confidence consumers are expressing for their current and future situations. The market’s challenge continues to be inventory – homes available for sale. Home sales are at a potentially record-setting pace while inventory is tracking at its lowest rate in more than a decade. It’s good news for sellers as homes are selling faster and the average sale price is increasing – up 4.6% in Central Indiana from the third quarter of 2014. But it can be stressful for buyers, who find fewer homes from which to choose, that often are selling faster.

In central Indiana, home sales – measured in pended sales – were up only 0.8% over 2014, suggesting a slowdown in the pace of growth. Three outlying counties – Montgomery, Morgan and Putnam led the way. Marion County experienced a strong 6.6% increase, while Hamilton and Shelby counties were actually down double-digits.

The inventory of available homes for sale was down 4.4% year-over-year for the second quarter. Nine of the eleven counties in our report decreased in inventory. Weakness in the number of homes on the market continues to be problematic for home-buyers with decreasing selection and increasing competition for available homes.

While we continue to anticipate a modest slowing of the housing market, we believe the market will remain strong and healthy for an extended period. We are experiencing growing consumer confidence on a solid foundation of a recovered U.S. economy.

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