Central Indiana residential real estate continues to be a seller’s market
Tighter housing inventory leads to increased sales prices
INDIANAPOLIS – As a result of fewer homes on the market, average home prices in Central Indiana reached $176,863 in November 2014, a 6.5 percent jump compared to November 2013.
Available homes for sale in the nine-county region decreased 3.7 percent in November 2014 with 10,285 homes on the market, 395 fewer than in November 2013. Eight Central Indiana counties saw varying inventory declines with Hendricks County experiencing the greatest decline at 15.6 percent, with 756 homes for sale in November 2014 compared to 896 homes in November 2013. Boone, Hamilton, Hancock, Johnson, Madison, Marion and Shelby counties also saw decreases. In Morgan County, inventory rose 5.4 percent, with 469 homes for sale, an uptick of 24 homes.
All nine counties that F.C. Tucker tracks experienced slightly higher home sales prices in the first 11 months of 2014 compared to the same time period last year. Home prices in Shelby and Boone counties increased the most, at 19.7 and 12.1 percent, respectively. In Shelby County, homes sold for an average of $120,268, while homes in Boone County averaged $281,555. Hamilton, Hancock, Hendricks, Johnson, Madison, Marion and Morgan counties also reported gains.
In November 2014, pended home sales declined 3.8 percent year to date, with eight counties experiencing a decrease. In November, Shelby County saw the largest year-to-date decrease in pended home sales which fell 15.5 percent compared to the first 11 months of 2013. Only Johnson County experienced a year-to-date increase – 0.9 percent. On a monthly basis, November 2014 pended home sales declined 2.8 percent over November 2013, a decrease of 51 homes sold.
“We expect the shrinking inventory to continue driving up prices – which will keep contributing to the seller’s market that we’ve been experiencing in recent months,” said Jim Litten, president of F.C. Tucker Company. “We are still positioned to finish the year on a healthy note despite slightly sluggish sales compared to last year – the fourth best year in real estate history.”
Of the pended home sales in the region last month, one was priced more than $2,000,000; four were priced $1,000,000 to $1,999,999; 49 were priced $500,000 to $999,999; 157 were priced $300,000 to $499,999; 252 were priced $200,000 to $299,999; 736 were priced $100,000 to $199,999; and 567 were priced at $99,999 or less.