Warren Township Pending Sales Plummet 54.1 Percent in May, 2010

It was understandable when total pending sales hit a 15-month low in December of 2009; after all, it was the Christmas season, which for most people meant gift-buying took precedence over home-buying. But what to make of the new 15-month low of just 640 total pending sales that occurred in May, 2010? After 3 consecutive months of gains in this statistical category, and with spring in full-throttle, one might have expected a slight tapering, but a 15-month low? But the Warren Township real estate market was not the only one affected; indeed, many other central Indiana cities endured this very phenomenon. Compared to May of 2009, when there were 1,152 pending sales in the wings, this comes as quite a surprise.

On the plus side, there was a 1.4-percent increase in the total number of closed sales, from 1,089 in April to 1,104 in May. Compared to 939 sales a year ago this was a 17.6-percent increase. Meanwhile, the total number of Warren Township homes for sale dropped 0.7 percent, from 7,812 in April to 7,758 in May. Compared to 7,494 listings in May of 2009 this was a 3.5-percent decrease. Indeed, May of 2010 marked the 4th consecutive month of gains in this category.

Some other pertinent information:

  • The average time spent on market for homes in the Warren Township area of Indianapolis dropped slightly, from 79 days in April to 77 in May. This is a 6 percent decrease from the 12-month average of 82 days on market. It also represents a 6-month low.
  • Over the past 15 months, the average sold-list differential for homes in Warren Township has not been able to break the 96-percent barrier. This seeming point of resistance held true in May, 2010 too as homes sold for an average of 95 percent of list price. They had sold for an average of 96 percent of list the previous month.
  • The average cost per square foot rose from $57 in April to $61 in May. This is nearly 11 percent above the 12-month average of $55.
  • The average ‘sold’ price also rose, from $112,000 in April to $123,000 in May. The 12-month average for this metric is $108,000.
  • There were 7.0 months of inventory based on closed sale and 12.1 months based on pending sales.
  • The absorption rate based on closed sale was 14.2 percent, while the absorption rate based on pending sales was 8.2 percent.