Indianapolis Pending Home Sales Constant While Prices Fall

According to a recent report by F.C. Tucker Co., the Indianapolis real estate market may be looking up. Comparing written purchase agreements from August, 2008 to August, 2009, the number for Indianapolis pending home sales was virtually constant with 2,216 pended in ’08 and 2,213 in ’09.

This consistency is good news for Indianapolis as it represents that interest in Indianapolis homes for sale may be leveling off.

The best impact of Indianapolis pending home sales increases was felt in Johnson County where the number of written purchase agreements increased 17.8%, as 172 were written in August this year versus 146 last year. Home sales also increased in a study comparing sales from July, 2008 to July, 2009. With 197 sold in ’08 and 180 sold in ’09, a 9.4% increase was noted. Greenwood contributed to Johnson County coming out on top in this same Greenwood home sales report with an increase of 35.6% in home sales from 2008 to 2009.

Other Indiana counties that registered an increase in pendings from August, 2008 to August, 2009 were Hancock, Marion and Hamilton Counties. In the second place spot was Hancock County where a 15.4% increase was felt with pendings jumping to 75 from 65.

Marion County had good news for its biggest city of Indianapolis because their pendings also increased by a healthy rate of 5.9% with numbers jumping from 1,036 to 1,097.

Hamilton County had the smallest increase in written purchase agreements with a small improvement of 4 additional pendings when comparing ’08 to ’09. On the other hand, Hamilton County’s largest city felt a decrease in home sales when comparing similar months (July, 2008 to July, 2009.) During those months, Carmel experienced a 4.1% decline in home sales and also a 9.1% drop in home sale prices as reported in a Carmel home sales report.

Not receiving the good news as these counties, Madison, Hendricks, Shelby, Morgan and Boone all witnessed over 10% declines in pending agreements, with Shelby, Boone and Morgan posting less than 100 pendings in August, 2008 and August, 2009. Specifically in Boone County, the Zionsville real estate market also felt a large impact on its home sales from July, 2008 to July, 2009 where a 17% decline in home sales was felt.

This report by F.C. Tucker studied nine counties in the local Indianapolis area and on the whole, what they found is that the Indianapolis pending home sales agreements declined 7.5% from August, 2008 to August, 2009. Also showing that the housing decline may be slowing is the number of homes for sale in this given collection of counties where a 16.3% decrease from the same time last year was noted.

Interestingly, while there were increases noted in four of the nine counties studied, the sales price average actually decreased in all but one county. Boone County was able to register a 0.4% increase in sales price to almost $256,000, which is also the highest price of all nine counties. Over all counties, the median price lowered 5.5% during the reporting months to nearly $140,000.

While things are looking up in general, reports show that we’re not quite out of the crisis yet. Those in the market to buy or sell might want to consider contacting a REALTOR® to ask the important questions now as the market just begins to take some interesting turns.