Zionsville Real Estate Report – June, 2010

Talk about a delayed reaction: While the Zionsville real estate market was barely affected in May by the recently expired federal tax credit for new home purchases there were significant changes in June, 2010. While total pending sales in May dropped just 6.6 percent, a much heftier 33.3 percent drop was recorded in June as there were just 28 sales with a ‘pended’ status. Compare to last June’s total of 31, however, this is a far less significant drop of just 9.7 percent.

In the category of total sales there was reason to celebrate as there were 33.3 percent more homes sold in June (56) versus the previous month (42). Compared to June of 2009 this was an even bigger increase of 36.6 percent.

But alas, this is where the positivity ends. That’s because total listings rose 4.1 percent, reaching a 15-month high total of 356 in June.  This total had actually dropped the previous month. Relative to June of 2009, when there were 350 Zionsville homes for sale, this represents an increase of 1.7 percent.

These aforementioned stats were reflected in June’s total inventories. Based on closed sales, there was a 21-percent drop in total inventory, from 8.1 months in May to just 6.4 months in June. This is also well below the 12-month average of 10.6 months of inventory.

Not surprisingly, there was a 57-percent rise in total inventory based on pending sales, from 8.1 months in May to 12.7 in June. Over the past 12 months there has been an average of 10.2 months of inventory based on pending sales.

Homes in Zionsville, Indiana have tended to spend more time on market relative to that of other nearby central Indiana cities. In fact, the 12-month average time on market in Zionsville, including June of 2010, is 97 days. Speaking of which, the average time on market 102 days in June was up 14.6 percent from the previous month’s average of 89 days. Be that as it may at least it was nowhere near the 15-month high of 152 days that occurred in February of 2010.

Zionsville sellers have recently shown a greater willingness to compromise on price compared to sellers in other nearby markets. In 5 out of the past 7 months, the sold-list differential fell as low as 91 percent while never rising above than 94 percent. The 12-month average is 94 percent.

If you’re going to buy a home in Zionsville on thing you can count on is higher price per square foot compared to that of other central Indiana real estate markets. The situation improved a bit for buyers as the average price per square foot fell 8.1 percent, from $98 in May to $90 in June. The 12-month average price per square foot, including June, is $89.

The average ‘sold’ price rose a mild 2.3-percent as homes went for an average of $345,000 in June compared to $337,000 in May. This is just 1.4 percent below last June’s average of $350,000 and 2.4 percent above the 12-month average of $337,000.

Some other pertinent info:

  • The total months of inventory based on closed sales dropped from 8.1 in May to 6.4 in June. On average, there has been 10.6 months of inventory based on closed sales over the past 12 months.
  • Based on pending sales there were 12.7 months of inventory, or 57 percent more relative to the previous month’s total of 8.1.
  • The absorption rate based on closed sales rose from 12.3 percent in May to 15.7 percent in June. The absorption rate based on pending sales dropped from 12.3 to 7.9 percent during this same period.
  • June’s average active price of $543 was 1.6 below the previous month’s average of $552 and 3 percent below the 12-month average of $560,000.
  • The median price was $302,000.