Pended sales and home prices continue to climb; inventory remains low

INDIANAPOLIS – The seller’s market continues in Central Indiana, as the number of homes available for sale and mortgage rates remain low, according to F.C. Tucker Company’s data for the 15-county region. October pended sales ticked up 4.4 percent compared to October 2015, while the average year-to-date home price also gained ground in October, increasing 2.9 percent for an average price of $187,867. The majority of October active listings included homes less than $200,000, although homes in the $200,000 to $300,000 range showed increased sales activity.

As autumn winds down, the residential real estate market continued to show signs of life. October marked the sixth straight month of increased home sales, a trend that experts don’t expect to end soon. Twelve of the 15 counties that F.C. Tucker tracks showed an improvement in sales. Specifically:

• Madison, Decatur and Shelby counties displayed significant growth in the number of homes sold. Madison County’s sales increased by 24.3 percent in October 2016 compared to October 2015; Decatur County’s sales increased 21.7 percent; and Shelby County saw a 20.5 percent increase. Counties with the greatest number of home sales overall included Hamilton and Marion. Marion County sold 890 homes, on par with October 2015, while Hamilton County sold 441 homes, an increase of 46 homes compared to the same time last year.
• Brown and Hancock counties’ pended sales, on the other hand, decreased close to 30 percent compared to October 2015.

Home prices inched up in October, indicating a steady improvement for the year:

• The average year-to-date price in the 15-county region ticked up 2.9 percent, now at $187,867.
• Boone County’s average price remained the highest of all counties that F.C. Tucker monitors. It rose more than $21,000, or 7.9 percent, to $292,808 in October. Hamilton County came in a close second, with an average sales price of $285,825.
• Only three counties showed a slight dip in average home prices: Jennings, Bartholomew and Putnam counties’ average home prices declined less than 2.3 percent compared to 2015.
• Homes sold in 71 days on average. Johnson County homes sold in 64 days, or 11 fewer days compared to 2015. Homes in Hamilton County sold the fastest in the region at an average of 63 days, but remained flat compared to last year.

The number of home listings remains tight, with the average months of available inventory hovering at or below four months. Listings have fallen 19.2 percent; 9,653 homes were on the market in October, a decrease of 2,299 homes.

• Marion County’s inventory dropped by 1,253 homes compared to October 2015.
• On the other hand, Jennings, Bartholomew and Montgomery counties were the only areas with more inventory than this time last year.

“Attractive pricing and financing options have contributed to steady sales month over month,” said Jim Litten, CEO of F.C. Tucker Company. “We’re optimistic about the future and don’t anticipate significant changes in either of those areas under a new administration.”

Of the pended home sales in the region last month, two were priced above $2,000,000; eight were priced $1,000,000 to $1,999,999; 64 were priced $500,000 to $999,999; 243 were priced $300,000 to $499,999; 399 were priced $200,000 to $299,999; 989 were priced $100,000 to $199,999; and 624 were priced at $99,999 or less.

Editor’s Notes:

• All statistics were compiled by F.C. Tucker Company from a report drawn from Broker Listing Cooperative® statistics on Nov. 15, 2016. Because of delayed processing through other agencies or boards, these numbers are subject to change.
• “Active Listings – Inventory” is a snapshot frozen in time at the end of the stated month. Active listings include “Active with Contingency Status” filings, which includes homes listed as Pending First Right of Refusal and/or Backup Pendings due to Contract, Financing, Inspection or Other.
• “Pending” means the sales contract has been signed, but the transaction has not closed. According to the NAR, pending sales typically are finalized within a month or two of signing.
• For this report, F.C. Tucker tracks the following counties: Bartholomew, Boone, Brown, Decatur, Hamilton, Hancock, Hendricks, Jennings, Johnson, Madison, Marion, Montgomery, Morgan, Putnam and Shelby.

Read the entire November Market Watch: market-watch-11-2016