Lawrence Township Real Estate Market Heads in Wrong Direction in May, 2010

From a supply-and-demand standpoint, the Lawrence Township Real Estate Market was heading in all the wrong directions in May, 2010. Starting with total homes sold, this figure dropped 11.4 percent, from 158 in April to 140 in May. If there was anything redeeming about this it was the fact that, compared to May of 2009, it represented an increase of 29.6 percent. Adding to the negative momentum was a precipitous 61.5-percent drop in the total number of pending sales, from 179 the previous month to just 69 in May.  Versus 123 pending sales in May, 2009 this was a 43.9 decrease. It would be nice if we could say the damage ended there. But alas, there was a 3.6-percent increase in the total number of Lawrence Township homes for sale, with 1032 for sale in April versus 1069 in May. Even worse, from a 1-year historical perspective, this was a 14.1 decrease. It would be fair to say that the market did not favor sellers in May. Hopefully, things will turn around in the coming months in these statistical categories.

Homes for sale in the Lawrence Township area of Indianapolis, Indiana spent an average of 78 days on market compared to 72 the previous month–an increase of 8.3 percent. Compared to the 15-month high of 113 days on market that was set in May of 2009, however, this was a decrease of nearly 31 percent. The most recent 12-month average as of May, 2009 was 80 days.

Other pertinent stats:

  • Sellers benefited from an increase in the average sold-list differential as homes sold for an average of 97 percent of list versus 95 percent the previous month. The 12-month average is 96 percent.
  • The average cost per square foot rose approximately 6 percent, from $63 in April to $67 in May. The 12-month average is $63.
  • There were 7.6 months of inventory based on closed sales in May versus 6.5 in April
  • There were 15.5 months of inventory based on closed pending in May versus 5.8 in April—an ominous 67-percent increase.
  • The absorption rate based on closed sales was 13.1 while the absorption rate based on pending sales was 6.5 percent.