Indianapolis Real Estate Market Cools with Onset of Summer

The Indianapolis real estate market cooled a bit during May, 2010. Considering that every single township in the city experienced a drop in total pending sales, the question is not whether this key stat dropped but by how much. The total number of pending sales city-wide dropped 54.4 percent, from 1393 in April to just 635 in May. And the corresponding increase in the total number of homes sold that one would expect to see as all those pending sales turned into closed sales? It basically wasn’t there; not unless you count a mere 1.6-percent increase. So while there were 758 fewer pending sales there were only 17 more closed sales. Which begs the question: what happened to all those pending sales? Perhaps this has something to do with the expirations of the $8,000 federal tax credit for first-time home buyers and $6,500 tax credit for repeat home buyers. What else could explain the single largest percentage drop in total pending sales over the past 15 months?

At least the total number of Indianapolis homes for sale was not on the rise. There was a 0.6-percent drop in listings, from 7789 in April to 7743 in May. Compared to a total of 7,441 in May of 2009, however, this was a net increase of 4.1 percent.

Some other statistical facts:

  • Over the past 12 months homes in Indianapolis, Indiana have spent an average of 81 days on market. This figure was down approximately 6.2 percent as homes spent an average of 76 days on market in May, 2010.
  • The average price per square foot rose 8 percent, from $57 in April to $62 in May. This was 10.7 percent above the 12-month average of $56.
  • There were 7 months of inventory based on closed sales and 12.2 months based on pending sales.
  • The absorption rate was14.3 percent based on closed sales and 8.2 percent based on pending sales.
  • The average ‘sold’ price was $125,000—up 13.6 percent over the 12-month average of $110,000.
  • The average active price was $162,000. This matches exactly the 12-month average.
  • The median home price in May was $115,000.