In May, 2010 every township in Indianapolis, Indiana underwent a steep decline in the total number of pending sales. And to make matters worse, there were decreases across the board in total sales as well. Fast-forward to June, 2010 and the Lawrence Township real estate market proved there may life after the recent death of the federal tax credit for new home purchases, at least with respect to the statistical categories of total pending sales and total closed sales.
There was a 57.5-percent increase in the total number of pending sales in Lawrence Township, from 73 in May to 115 in June. Not only this, but there was an ever-so-slight, 0.7 percent increase in the total number of homes sold. While both of these metrics were down a bit compared to where the market was a year ago this is still positive news in its own right.
But alas, there was the sobering reality that for the past 6 months the total number of homes listed for sale has continued to rise. In June, there were 3.5 more Lawrence Township homes for sale compared to May, or 1106 versus 960 respectively. In fact, the line representing total listings has followed a more or less linear trajectory for the past 6 months, with no signs of tapering thus far.
Some other statistical tidbits:
- June, 2010 marked the third consecutive month that the total time spent on market has risen as homes spent an average of 95 days on market compared to 78 in May—an increase of nearly 22 percent. This was 15.8 percent above the 12-month average time on market of 82 days.
- One statistical area in which the Lawrence Township Real Estate market has been decent over the past 15 months is that of the sold-list differential. In June, homes sold for an average of 95 percent of list price versus 97 percent the previous month. Over the past 12 months homes in this area of Indianapolis have never sold for less than 94 percent of list price. The 12-month average is 96 percent.
- The average price per square foot dropped slightly, from $67 in May to $65 in June. The 12-month average price per square foot is $63.
- Because June’s increase in homes sold was not enough to overcome the rise total listings the months of inventory based on closed sales rose slightly, from 7.4 to 7.6. The total months of inventory based on pending sales 34 dropped percent, from 14.6 in May to 9.6 in June.
- The absorption rate was 13.1 percent based on closed sales and 10.4 based on pending sales.
- The average active price of $194,000 was down 5.3 percent from the 12-month average of $205,000.
- The average ‘sold’ price of $139,000 remained unchanged from the corresponding 12-month average.