Indianapolis Real Estate Matters

Central Indiana homes sales strong in second half of 2009

Local real estate market becoming more stable

INDIANAPOLIS – Homes sales surged in the second half of 2009, with activity picking up initially in July, peaking in October, and running level in November and December, compared to 2008. More than 1,350 Central Indiana homes pended in December, with five of nine Central Indiana counties reporting increases compared to the same time period in 2008, according to pended sales statistics compiled by F.C. Tucker Company.

Morgan County posted a significant 52.9 percent increase, followed closely by Madison County at 52.6 percent. At the end of the year, the overall market showed greater stability. December home sales were nearly level with those in December 2008 with 1,356 homes pended in 2009 compared to 1,360 in December 2008.

For the year 2009, a total of 24,395 homes sales pended, a slight 1.6 percent decline over 2008 sales numbers. The average home sales price in Central Indiana also stabilized at $139,212, a modest decline of 2.9 percent over 2008’s prices.

“A look back at 2009 shows a year of stabilizing and increased activity, especially at the end of the year,” said H. James Litten, president of F.C. Tucker Company’s Residential Real Estate Services Division. “The federal tax credits offered to first-time homebuyers in the second half of the year helped propel much of the sales activity.”

Available homes for sale in the nine-county region dropped 13.2 percent in December 2009 with 13,875 homes on the market, 2,103 fewer homes than in December 2008. Three counties experienced above average inventory declines. Hancock County experienced the greatest decrease in inventory at 20.6 percent, followed by Marion and Madison counties with 15.6 and 13.9 percent, respectively. Looking back, January 2009 showed 15,415 available homes on the market.

“2010 looks promising because we are seeing real declines in Central Indiana real estate inventory, including significant portions of foreclosed and bank-owned properties, existing for-sale properties and new home properties,” said Litten. “Inventory declines mean further price stabilization and the potential for a pickup in the demand for both existing and new homes.”