Decatur Township Real Estate Pipeline Replenishes Itself in June, 2010

After last month’s steep drop-off in total pending sales one had to wonder what would become of the Decatur Township real estate market in June, 2010. It is now clear that the pipeline has begun to replenish itself with a significant rise in the total number of pending sales. In June, pending sales climbed 42.9 percent to reach a total of 40 versus the previous month’s tally of 28. Now one year removed from June of 2009 this represents a 37.9-percent increase in total pending sales.

Still, the effects of May’s crash in pending sales were evident in the category of total sales as there were 17.4 percent fewer homes sold in June (38) compared to May (46). Relative to June of 2009, when 44 homes were sold, this is a less pronounced drop of 13.6 percent.

June marked the second month in a row that the total number of listings was on the decline as there were 265 Decatur Township homes for sale compared to 267 the previous month—a 0.7-percent drop. While this may not sound like much—from a purely statistical standpoint, it is not—it nevertheless is better than the alternative, which is that total listings increase, causing inventories to swell at a time when sellers are already struggling with downward price pressure.

Over the past 12 months homes in the Decatur Township are of Indianapolis, Indiana have spent as few as 56 (March, 2010), and as many as 101 (July, 2009), days on the market. In June, 2010 homes spent an average of 66 days on market; down 16.4 percent from the previous month’s total of 79 and roughly 13 percent below the 12-month average of 75 days.

The sold-list differential remained unchanged from the previous month’s average of 98 percent. Over the past 12 months, the average for this metric has dropped below 95 percent just once, when it hit 93 percent in January, 2010. On average, sellers have realized 96 percent of list price over the past 12 months.

Some other pertinent facts:

  • The average price per square foot remained unchanged from the previous month’s average of $53. The 12-month average is $51 per square foot.
  • The average ‘sold’ price fell 18 percent, from $99,000 in May to $81,000 in June. The 12-month average is $85,000.
  • The absorption rate based on closed sales dropped from 17.2 percent in May to 14.3 percent in June. Based on pending sales the absorption rate rose from 10.5 to 15.1 percent over this same period.
  • There were 7 months of inventory based on closed sales and 6.6 months based on pending sales.
  • The average active price was $130,000. The 12-month average active price (including June) is $118,000.
  • The median price was $83,000