The Central Indiana real estate market and its 19 constituent counties of showed remarkable improvement versus this same time 1 year ago in at least 3 key areas: Total homes for sale, total homes sold and total pending sales. As the saying goes, the numbers don’t lie.
A total of 4,131 more sales were finalized during all of 2012 compared to all of 2011. The 2012 total of 28,908 homes sold represents a 16.7-percent increase over 2011’s total of 24,774 homes sold. On average, there were 2,409 closings per month in 2012 compared to 2,065 the in 2011. As of December, 2012, there a total of 1,905 closings took place in Central Indiana, up 8.7 percent versus December of 2011. Even more impressive was the how the market performed during the most recent quarter compared to last year. From October through December of 2012, an average of 2,361 closings took place each month, or 23.7 percent more, compared last year’s average of just 1,909 this same quarter.
Big improvements were also seen in pending sales, as there were a total of 3,940 more pending sales reported in 2012 compared to 2011, or 29,394 versus 25,454 respectively. This translates to an increase of 15.5 percent. December’s total of 1,725 pending sales represents a 12.2-percent increase compared to last year’s total of 1,538. And from October through December of 2012, there were, on average, 2,115 pending sales reported per month, or 21.3 percent more, compared to this same period 1 year ago.
As is quite clear to anyone in the real estate business, the number-1 factor that has negatively affected home prices since 2008 is supply. Fortunately, the Central Indiana market made great strides toward achieving a better balance in terms of supply-and-demand, as there were 25,901 fewer homes on the Central Indiana market in 2012 compared to the previous year, or 185,683 versus 211,584 respectively. December’s total of 12,931 homes for sale represents a healthy, 13.8-percent decrease in total listings versus this same month 1 year ago, and that’s good news. In fact, since peaking at a total of 16,894 in June, 2012, the number of homes on the market in Central Indiana had fallen for 6 consecutive months. In yet another comparison, the average number of homes listed for sale on the Central Indiana market, from October through December of 2012, was down 12.8 percent relative to this same quarter 1 year ago, or 14,045 versus 16,099 respectively. Finally, of the 12,931 homes on the market in December, 1,962 were new listings. During this same month last year a total of 2,033 new listings made their way to the market.
Some other interesting stats for the Central Indiana market:
- The average sold-list difference based on original asking price was down only slightly as sellers realized 87 percent of their asking price in 2012 versus 88 percent during all of 2011. The average sold-list difference based on final asking price remained unchanged at 95 percent from 2011 through 2012.
- The average time on market improved by nearly 7 percent, which is to say it fell from an average of 101 days for all of 2011 to just 94 days during all of 2012.
- The 2012 average price per square foot was $65, up 3.1 percent versus the 2011 average of $63.
- The 2012 average ‘sold’ price of $148,000 was up 3.5 percent versus the 2011 average of $143,000.
- The average absorption rate based on both closed and pending sales for all of 2012 was 16 percent compared to just 12 percent the previous year.
- On average, there were 7 months of inventory based on closed sales and 6 months based on pending in 2012. In 2011, the average was 6 months of inventory for both closed and pending sales.