Housing Market Bouncing Back

INDIANAPOLIS – Home prices and market activity held strong during June according to the monthly report jointly released today by the Metropolitan Indianapolis Board of REALTORS (MIBOR) and the Indiana Association of REALTORS (IAR). Today’s report closes the door on the first half of 2012, which saw an increase in closed and pending home sales, as well as the median and average price of those sales, from the year before.

The number of closed sales in central Indiana increased by 17.3 percent in the three months ending in June 2012 when compared to the same three-month period last year. In June alone, closed sales increased by 15.6 percent.

Pending sales increased by 9.7 percent in the three months ending in June and 10.3 percent in the one-month comparison. Pending sales reflect signed purchase agreements that have yet to close.

In central Indiana, the average sales price of homes increased by 5.2 percent to $165,147 in the three-month comparison. Average sales prices increased by 3.2 percent to $169,459 when compared to June 2011.

Additional key findings for central Indiana during April 2012 through June 2012:

* New listings decreased by 0.1 percent.

* Months of supply decreased to eight months, down 22.9 percent.

* Total active listings fell by 12.2 percent.

“We’ve witnessed steady improvements in housing activity over the past six months, including rising prices and pending sales,” said Debbie Morris, 2012 MIBOR president. “As consumer confidence ratings rise and interest rates remain low, we’re hopeful that this upward trend in activity will continue throughout the end of the year.”

Highlights from the statewide report include:

* The median sale price of homes statewide is in its seventh consecutive month of year-over-year increases and back to a level not seen since 2007.

* The average sale price of homes statewide is in its sixth consecutive month of year-over-year increases and also back to a level not seen since 2007.

* The number of closed home sales is in its 12th consecutive month of year-over-year increases with 2012 on track to surpass years in which a federal home buyer tax credit was available.

“For the third month in a row, the statewide housing market has made very good news,” said Karl Berron, Chief Executive Officer of the Indiana Association of REALTORS. Home prices and market activity were strong during June which is a result of pent-up demand and continued low interest rates. It’s also because homes across Indiana have historically held value, so real estate here has long been viewed as a wise investment.

“The demand will only be sustained if Hoosiers are working and confident in their long-term employment,” continued Berron. “So we are listening for economic development plans and watching jobs numbers closely.”

Getting back to the traditional year-over-year comparisons of the Indiana Real Estate Markets Report, statewide, when comparing June 2012 to June 2011:

* The number of closed home sales increased 11 percent to 6,750.

* The median sale price of those homes increased 3.4 percent to $124,000.

* The average sale price increased 2.7 percent to $147,559.

* The number of pending home sales increased 9.7 percent to 6,026.

The attached data will tell consumers how the central Indiana housing market is performing according to eight different indicators. Each indicator will have one-, three-, six- and 12-month comparisons, as well as a historical look. Consumers will also have access to specific county information for the 13 counties included in MIBOR’s Broker Listing Cooperative listing service area: Boone, Brown, Decatur, Hamilton, Hancock, Hendricks, Johnson, Madison, Marion, Montgomery, Morgan, Putnam and Shelby counties.

IAR’s report, found online under the Reports tab of IndianaIsHome.com, will show consumers how the state of Indiana’s housing market is performing according to the same indicators, with one-month and year-to-date comparisons, as well as provide a historical look. Consumers will also have access to specific county information for 91 of Indiana’s 92 counties in a sortable table format.

This information has been provided by MIBOR, the professional association representing central Indiana’s REALTORS. MIBOR serves the needs of more than 5,500 members in Boone, Brown, Hamilton, Hancock, Hendricks, Johnson, Marion, Montgomery, Morgan and Shelby counties. MIBOR also supplies the BLC service to REALTORS in Decatur, Madison and Putnam counties. MIBOR’s archive of housing data can be found at www.mibor.com.

IAR represents approximately 15,000 REALTORS who are involved in virtually all aspects related to the sale, purchase, exchange or lease of real property in Indiana. The term REALTOR is a registered mark that identifies a real estate professional who is a member of America’s largest trade association, the National Association of REALTORS, and subscribes to its strict Code of Ethics.

Source: Indiana Association of Realtors, MIBOR