Statewide Housing Market Continues Improvement

June 25, 2012

News Release

Indianapolis, Ind. -- Housing data released today for May 2012 shows a continued rise in median and average sales prices throughout central Indiana, according to a jointly released report of the Metropolitan Indianapolis Board of REALTORS® (MIBOR) and the Indiana Association of REALTORS® (IAR).

The number of closed sales in central Indiana increased by 15.8 percent in the three months ending in May 2012 when compared to the same three-month period last year. In May alone, closed sales increased by 18.6 percent.

Pending sales increased by 9.1 percent in the three months ending in May and 10.9 percent in the one-month comparison. Pending sales reflect signed purchase agreements that have yet to close.

In central Indiana, the average sales price of homes increased by 6.9 percent to $160,109 in the three-month comparison. Average sales prices increased by 6.6 percent to $164,947 when compared to May 2011.

Additional key findings for central Indiana during March 2012 through May 2012:

• New listings decreased by 1.7 percent.

• Months of supply decreased to eight months, down 20.3 percent.

• Total active listings fell by 11.4 percent.

“Strong numbers this month show that we’re moving toward a balanced market,” said Debbie Morris, 2012 MIBOR president. “Median and sales prices continued to rise, while pending and closed sales increased as well. When you look around, you can see the activity — more houses on the market, more sold signs. We are cautious though to keep a close eye on the economic factors that impact residential housing. Consumer confidence ratings dipped in May, so clearly positive jobs news is the missing factor that will provide more growth and stability.”

The statewide housing market performed very well during May. When compared with the same month of last year:

• The number of closed home sales increased by 17.1 percent to 6,478;
• The median sales price of those homes increased by 6.1 percent to $122,000;
• The average sales price increased by 6.1 percent to $144,442; and
• The number of pending home sales increased by 12.6 percent to 6,411.

“Members’ predictions of a strong traditional selling season are coming true, with all market measurements on the rise,” said Karl Berron, CEO of IAR. “A number of encouraging patterns are taking hold, particularly the fact that sellers are seeing a greater share of their list price. Though, with still historically low interest rates, qualified buyers have a great market in which to make an investment. Whether all this good news continues depends on Hoosiers working, so we are listening for economic development plans and watching jobs numbers closely.”

The attached data will tell consumers how the central Indiana housing market is performing according to eight different indicators. Each indicator will have one-, three-, six- and 12-month comparisons, as well as a historical look. Consumers will also have access to specific county information for the 13 counties included in MIBOR’s Broker Listing Cooperative® listing service area: Boone, Brown, Decatur, Hamilton, Hancock, Hendricks, Johnson, Madison, Marion, Montgomery, Morgan, Putnam and Shelby counties.

IAR’s report, found online under the Reports tab of IndianaIsHome.com, will show consumers how the state of Indiana’s housing market is performing according to the same indicators, with one-month and year-to-date comparisons, as well as provide a historical look. Consumers will also have access to specific county information for 91 of Indiana’s 92 counties in a sortable table format.

This information has been provided by MIBOR, the professional association representing central Indiana's REALTORS®. MIBOR serves the needs of more than 5,500 members in Boone, Brown, Hamilton, Hancock, Hendricks, Johnson, Marion, Montgomery, Morgan and Shelby counties. MIBOR also supplies the BLC® service to REALTORS® in Decatur, Madison and Putnam counties. MIBOR’s archive of housing data can be found at www.mibor.com.

IAR represents approximately 15,000 REALTORS® who are involved in virtually all aspects related to the sale, purchase, exchange or lease of real property in Indiana. The term REALTOR® is a registered mark that identifies a real estate professional who is a member of America’s largest trade association, the National Association of REALTORS®, and subscribes to its strict Code of Ethics.

Source: Metropolitan Indianapolis Board of REALTORS