Fishers Real Estate Market Cools Off in May, 2010

After rising for 4 consecutive months and reaching a 15-month high of 176, the total number of pending sales abruptly reversed course, plummeting to just 71 in May, 2010. This was a drop of 59.7 percent versus the previous month, and a drop of 53.3 versus May of 2009. It’s not uncommon to see a drop in total pending sales accompanied by a corresponding rise in closed sales. However, this is not what happened in Fishers, Indiana. Rather, there was an 11-percent drop in the total number of closed sales, from 155 in April to 138 in May. Compared to May of 2009 this was a 13.2-percent decrease in total sales. Could this mark the beginning of a cooling-off of the Fishers real estate market—in summer no less? Or might it be just a temporary glitch? Only time will tell.

Somewhat mitigating decreases in pending and closed sales was a less pronounced, 1.9-percent drop in the total number of Fishers homes for sale, from 678 in April to 665 in May. Compared to May of 2009 this was a 2.9-percent decrease. At least the total number of listings didn’t rise in May. From a supply-and-demand standpoint this is the last thing you want—at least if you’re a seller.

At least sellers in Fishers didn’t have to wait as long to sell their homes, at least compared to other less fortunate central Indiana towns, as the average time on market dropped 8.5 percent, from 67 days in April to just 57 in May. Over the past 12-months homes in Fishers have spend as many as 85 (Feb. 2010), and as few as 57, days on market. The 12-month average is 68 days.

The sold-list differential has always been decent in Fishers. In May, 2010 it remained unchanged from the previous month at 97 percent. Over the past 15 months it has dropped as low as 94 percent just once, in  August of 2009. The 12-month average is 96 percent.

Some other pertinent stats:

  • Buyers paid an average of $77 per square foot versus $76 the previous month. The 12-month average cost per square foot is $76.
  • The average ‘sold’ price dropped just 2 percent from the previous month to $198,000. The 12-month average is $209,000.
  • The average active price was $290,000. The 12-month average is $293,000.
  • There were 4.8 months of inventory based on closed sales and 9.4 months based on pending sales.
  • The absorption rate was 20.8 percent based on closed sales and 10.7 percent based on pending sales.