The Housing Market for Indiana
Upstar has just released the latest information about the housing market for Indiana for October. The report states, “Transitory periods in the market are common this time of year, and after a persistent period of steady year-over-year climbs in sales metrics, recent low national numbers have not fulfilled what many predicted. But on a positive note, jobless claims have also been at low levels, coming in as the lowest number since 1973. As always, every market and situation is unique, so some numbers seen in national trends may not always line up with local markets.
- New Listings decreased 4.2 percent to 848.
- Pending Sales were down 3.7 percent to 603.
- Inventory levels shrank 19.1 percent to 2,446 units.
- The Median Sales Price increased 2.5 percent to $116,250.
- Percent of Original List Price Received increased 0.5 percent to 93.4.
- Month’s Supply of Inventory was down 26.0 percent to 3.7 months.
Although we are headed into a slower time of year, as housing activity goes, there are still many nuggets of optimism to mine from monthly figures.
Indeed there are. Looking at the charts, we see new listings peak each year at about 1,200 since 2009. Before the housing crash, years saw peaks of 1.500 to 1,600 new listings.
Historical Pending Sales by Month show a new peak every year since 2011. Historical Closed Sales by Month also show a new peak each year since 2011. Again, Historical Median Sales Price by Month shows the same pattern and has surpassed the 2007 peak. The Historical Average Sales Price by Month again shows the pattern of higher peaks each year and the peak in 2015 at $155,000 is up $30,000 from the peaks in 2007. Probably because of low inventory buyers are paying closer and closer to the asking price shown in Historical Percent of Original List Price Received by Month.
What is cause for concern is the trends of Historical Housing Affordability Index by Mont h, Historical Inventory of Homes for Sale by Month, and Historical Month’s Supply of Inventory by Month. Housing affordability in July was the least affordable since 2008. The inventory of homes for sale sees a peak each year since 2007 that is lower than the previous year. Supply hasn’t been this low going back to 2005.
Why with rising home values are homeowners not willing to sell especially with the low rates and the threat by the Federal Reserve to raise rates? Could it be that they can’t afford home prices today. If you bought a house 20 years ago for $150,000, can you afford the same house at $450,000? Not hardly! Reminds me of the Dickens Tale of Two Cities, “It was the best of times, it was the worst of times.”
JT Integrity Properties is here to help homeowners out of any kind of distressed situation. As investors, we are in business to make a modest profit on any deal, however we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. Just the simple honest truth about your home and how we can help you sell it fast to resolve any situation.
Give us a call today at 260-202-2222 to let us know what YOU need help with!