Market Watch – August 2015

Central Indiana homes sales dip in August, but climb year to date

Fewer homes on the market result in increased sale prices, up 4.9 percent this year

INDIANAPOLIS – F.C. Tucker Company reported August 2015 home sales were down 11.1 percent for the nine-county central Indiana region, but up 8.2 percent year to date. Fewer homes were on the market last month compared to August 2014, showing a continuing trend toward a more balanced market. Average year-to-date home sale prices, however, climbed 4.9 percent to $186,087.

All nine central Indiana counties experienced varying declines in inventory. Madison County experienced the biggest drop at 23.9 percent. Marion and Shelby counties had the smallest changes, both reporting 2.7 percent fewer listings in August 2015 compared to August 2014, or 147 fewer active listings in Marion County and seven fewer in Shelby County.

Tucker’s data indicates that eight counties experienced slightly higher home sale prices than in August 2014. Year to date, Madison County led the way with an 11.7 percent uptick in prices. Hancock and Hendricks counties also saw increases of 7.8 and 7.5 percent, respectively, while Johnson and Marion counties also saw gains above 7 percent. Boone County, which still has the highest average sale price of all nine counties, experienced a decrease of 2.1 percent last month. The average sale price now stands at $278,429.

“The residential real estate story in the Indianapolis area continues to be declining inventory and increasing prices, which is attractive for home sellers,” said Jim Litten, president of F.C. Tucker Company. “Although we saw a slight decline in homes sales in August, the overall trend is positive. Interest rates and unemployment remain low, and consumer confidence is relatively strong.”

In August 2015, 2,393 homes pended, down from 2,692 in August 2014. Boone and Johnson counties experienced the largest drop in pended home sales at 27.9 percent and 26.1 percent, respectively. Year-to-date pended sales were up for all nine counties, with Madison, Shelby and Marion counties experiencing the largest gains.

Of the pended home sales in the region last month, four were priced $1,000,000 to $1,999,999; 79 were priced $500,000 to $999,999; 218 were priced $300,000 to $499,999; 372 were priced $200,000 to 299,999; 1,086 were priced $100,000 to $199,999 and 634 were priced at $99,999 or less.

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