Pike Township Real Estate: 3 Months Steady Improvement Wiped Out in May, 2010

Three months of steady improvement for the Pike Township Real estate market was basically wiped out in May, 2010. Starting with the total number of homes sold, there was a 3.5-percent drop, from 115 sales in April to 111 in May. This figure remained unchanged versus May, 2009. Meanwhile, total pending sales nose-dived 61-percent, from 154 the previous month to just 60 in May. Compared to 104 pending sales in May, 2009 this was a drop of 42.3 percent. But if fewer closed and pending sales were inevitable –as it turned out to be– then the last thing you’d want is a rise in the total number of listings. Fortunately, this figure dropped 0.6 percent as there were 643 Pike Township homes for sale in May compared to 647 the previous month. Compared to May of 2009 this was a 5.3-percent decrease.

With sales down in May, an increase in total inventory was to be expected. Indeed, that is what happened as there were 5.8 months of inventory based on closed sales in May compared to 5.6 in April. And with 10.7 months of inventory based on pending sales in May compared to just 4.2 in April there was an even larger increase of 55 percent in this statistical category.

In the Pike Township area of Indianapolis, Indiana homes have spent as many as 104, and as few as 75, days on market over the past 15 months. In May, Pike Township homes spent an average of 76 days on market. This is a pleasant 12.6 drop from the 12-month average of 86 days.

Some other statistical facts:

  • The average cost per square foot dropped just slightly from the previous month, from $64.34 to $63.01. The 12-month average is $61.
  • The average ‘sold’ price rose just 3 percent, from $126,000 in April to $130,000 in May.
  • The average active price remained unchanged at $161,000.
  • The absorption rate based on closed sales dropped from 17.8 in April to 17.3 percent in May, while the absorption rate based on pending sales dropped more significantly, from 23.8 to 9.3 percent over this same period.