Washington Township Pending Sales Take Nose Dive in May, 2010

The total number of homes sold in Washington Township rose 8.8 percent, from 181 in April to 197 in May, 2010. Compared to last May this was an even bigger increase of 22.4 percent. Somewhat overshadowing this good news, however, was the fact that the total number of pending sales was down a hefty 57.6 percent, dropping from 236 in April to a mere 100 in May. Even compared to a year ago this was a decrease of 46.2 percent. While it’s too early to say the Washington Township real estate pipeline drying up, it would be fair to say that pending sales are one of the best predictors of future sales. On a brighter note, the total number of Washington Township homes for sale dropped 3.3 percent, from 1293 in April to 1250 in May. This is good news from a market perspective since any increase in total listings would have the effect of skewing the market to far towards the supply side.

Fortunately for sellers, the average time spent on market dropped nearly 35 percent from the average of 83 days to just 64 days in May. Compared to the previous month’s average of 72 days this was an 11 percent decrease. Compared to the 15-month high of 112 days on market that was set in February, 2010 this was a decrease of 42 percent.

Only once in the past 15 months – December, 2009 — has the sold-list differential dropped below 94 percent in the Washington Township area of Indianapolis, Indiana. The month of May remained true to this statistical fact as sellers realized 96 percent of list price. The 12-month average is 95 percent.

But the sold-list differential was not the only statistical category in which sellers benefited; the average cost per square foot rose from $73 in April to $76 in May. This was also an increase of 5 percent versus May of 2009.

Some other pertinent stats:

  • The absorption rate based on closed sales was 15.8 percent while the absorption rate based on pending sales was 8 percent.
  • There were 6.3 months of inventory based on closed sales while there were 12.5 months of inventory based on pending sales.
  • The average ‘sold’ price rose 7.5 percent, from $172,000 in April to $185,000 in May.