Housing Report Brings Mixed Results

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RE/MAX of Indiana LP says the number of homes sold in central Indiana in the second quarter of 2014 dropped nearly 8.5 percent compared to the same period the previous year. The company's Hoosier Housing Report on Central Indiana also showed second quarter sales prices increased more than 7 percent in the nine-county area.

August 11, 2014

News Release

Indianapolis, Ind. -- According to the latest housing data compiled by RE/MAX of Indiana, the number of homes sold in Central Indiana dropped 8.46 percent during the second quarter of 2014 compared to the second quarter of 2013. From April through June, a total of 8,549 homes sold and closed, compared to 9,339 that sold during the same time last year.

Despite the decrease in home sales during the second quarter, local real estate experts remain optimistic about the market. Looking back at the first quarter of the year, Central Indiana struggled with a 14.15 percent decrease in year-over-year home sales from January through March 2014. The second quarter fared better with an 8.46 percent decrease. And in June alone, the dip in sales lessened further with just 4.70 percent fewer homes sold compared to June of 2013.

"Home sales continue to be encouraging through the first two quarters of 2014," said Rob Campbell, broker with RE/MAX Select in Greenwood. "The most exciting part for homeowners is seeing home values increase again. The demand for homes was high early this year and the supply of listings was low. This caused prices to increase at the fastest pace in several years."

Consumers in Central Indiana who sold their homes during the second quarter were rewarded with higher average sales prices, which increased 7.17 percent when compared to sales transactions in 2013. This increase brought the average price for homes up to $178,987 compared to $167,019 during the second quarter of last year. During the month of June alone, average sales price increased 10.27 percent for the nine-county area.

Shelby County saw the most significant increase in average sales price by 33.02 percent to an average of $134,837. Marion County saw an increase in price by 9.21 percent, followed by Hamilton (8.58 percent), Hendricks (6.78 percent) and Boone (6.18 percent) counties.

"The increase in prices should have a long term affect as long as the economy stays consistent," said Campbell. "Available homes were high in demand during the second quarter, causing multiple offers on homes and buyers having to out-bid each other in some cases. This drove offer prices on homes higher than what they would have sold for in the past few years."

According to Campbell, appraisers recognized this demand in 2014 and were willing to give higher values to homes.

"Having multiple offers on a home ultimately means the value of the home has been established by the willing buyers," said Campbell. "Appraisers had to allow home values to increase above values they had seen prior to 2014 for appreciation to take place during the first and second quarters."

Meanwhile, the length of time a home sat on the market from April through June remained relatively unchanged with a 1.22 percent decrease to an average of 82 days on market – just one day quicker than the same time last year.

Sellers in Hendricks County saw the largest drop in days on market by 25.76 percent, followed by Hancock (-15.05 percent), Hamilton (-10.45 percent), Shelby (-8.93 percent) and Morgan (-5.77 percent) counties. Other areas, however, saw modest increases in the number of days on average for a home to sell. Madison County experienced a 26.04 percent increase, followed by Johnson (14.29 percent), Marion (9.09 percent) and Boone (5.32 percent) counties.

Source: RE/MAX of Indiana LP