The Indianapolis real estate market took a serious blow in May following the expiration of the federal tax credit for new home purchases. Pending sales totals in all townships were sent hurtling downward in what appeared to be the beginning of a new slump, and when the market would recover was anyone’s guess. While conclusive data will emerge over time there are least some signs that things have begun to stabilize, starting with the latest pending sales totals. In Indianapolis, 5 out of 9 townships showed significant increases in total pending sales. City-wide, pending sales totaled 735, up 7.3 percent from the previous month’s total of 685. In fact, Bloomberg Businessweek recently called Indianapolis one of the most improved real estate markets for 2010, ranking it number 18 out of the top 21.
In the category of total sales, however, there was a slightly different story as there were 9.8 percent fewer homes sold in June (1,039) versus May (1,152). Relative to June, 2009 this represents a less pronounced drop of just 5.8 percent. But all of this should come as no surprise given the fall-out in pending sales that occurred in May. While it will take time for the pipeline to replenish itself at least there is evidence that the process has already begun.
Were it not for the sudden drop in pending sales in May it would have been reasonable to expect the total number of listings to continue on a descent that started in April. But you can’t lose 758 pending transactions and expect this to not be reflected in total listings. Indeed, this is what happed in June as 269 more homes were put on the market, raising the grand total to 8,012 Indianapolis home for sale. This is an increase of 3.5 percent versus the previous month and an even greater increase of 5.8 percent relative to June of 2009, when there were just 7,677 total homes for sale.
Some other pertinent info:
Over the past year, the average time spent on market has never varied by more than 13 days in Indianapolis, Indiana. Homes have spent as few as 75, and as many as 88, days on market during this period. In June, 2010 homes spent an average of 5.2 percent more time on market, or 80 days, relative to the previous month. The 12-month average is 81 days.
Another stat that has varied little over the past 12 months is that of the sold-list differential as homes have neither sold for less than 94 percent, nor more than 96 percent, of list price. In June, the sold-list differential matched the 12-month average of 95 percent.
Obviously, any stat correlated to the previous month’s drop in total pending sales was bound to suffer. Such was the case for total inventory based on closed sales. In June, 1 month of inventory was added to the previous month’s total of 6.7. Total inventory based on pending sales fell from 11.3 months to 10.9 months during this same period.
The absorption rate based on closed sales fell from 14.9 percent in May to 13 percent in June. The absorption rate based on pending sales rose from 8.8 to 9.2 percent during this same period.
The average ‘sold’ price rose just slightly from $125,000 in May to $127,000 in June. This is 14.4 percent above the 12-month average of $111,000.
The price per square foot remained unchanged from the previous month’s average of $62. This is 10.7 percent above the 12-month average of $56.
The average active price of $161,000 was just a shade below the 12-month average of $162,000.
The median price was $103,000.