It’s easy to get lost in the short-term market fluctuations that occur from one month to the next. But in the world of statistics, it is the bigger picture that matter most. With this in mind, we look at the greater Indianapolis metro real estate market and the nine counties that comprise it, including Boone, Hamilton, Hancock, Hendricks, Johnson, Madison, Marion, Morgan and Shelby.
Looking at this year’s numbers, the one thing that stands out is that the market was significantly improved in 2012 compared to where it was in 2011. This can be seen in at least three very important indicators: closed sales, pending sales and listings.
With respect to home sales, it should be noted that month of December, 2012 marked to 20th straight month for which the total number of homes sold during that month exceeded the previous year’s total for the same month. But there were several other improvements seen in 2012 compared to 2011. There were 23,292 fewer homes on the greater Indy market for all of 2012 compared to 2011. The 2012 average of 12,721 listings per month represents a 13.2-percent reduction compared to the 2011 average of 14,662 listings per month. In December of 2012, there were 10,388 homes on the market, or 28.8 percent fewer, compared to 14,595 homes 1 year ago. From October through December of 2012, there were, on average, 11,352 homes listed each month, nearly 15 percent fewer, compared to this same quarter 1 year ago. And of the 152,656 homes on the market during all of 2012, 34,619 were new listings, or 22.6 percent. Compared to all of 2011, when 21.2 percent of the homes on the market were new listings this represents a slight increase of 1.4 percent.
An average of 2,081 closings took place each month during 2012, up 17.8 percent over 2011’s monthly average of just 1,767. Overall, there were 3,760 more homes sold in 2012 compared to the previous year. In December of 2012 there were 1,764 homes sold, or 9.2 percent more, compared to this same month 1 year ago. And, from October through December of 2012, there were, on average, 2,021 homes sold, or 25 percent more, compared to an average of 1,617 sales during this same quarter in 2011.
There were 3,490 more pending transactions reported during all of 2012, or 18 percent more, compared to all of 2011. Monthly, an average of 2,105 pending sales were reported each month during 2012 compared to an average of 1,814 per month during all of 2011. The December, 2012 total of 1,447 pending sales represents a 10.4-percent increase over this same month 1 year ago.
Some other greater Indy metro stats worth noting:
- Sellers realized an average of 87 percent of original asking price in 2012. This is down just slightly versus the 2011 average of 88 percent. This slight difference may reflect sellers’ greater willingness to negotiate, and by extension, at least partly account for the increase in sales overall in 2012 compared to 2011. As a percent of final asking price the sold-list difference was up by 1 percent in 2012 compared to 2011, or 95 versus 96 percent respectively.
- The 2012 average price per square foot was up 3.1 percent, from $64 in 2011 to $66 in 2012.
- The Average ‘sold’ price was also up nearly 2.7 percent, from $149 in 2011 to $153 in 2012.
- The average active price was virtually unchanged, moving just ½ of 1 percent from $197,000 in 2011 to $198,000 in 2012.
- The average absorption rate based on closed sales for all of 2012 was 16 percent compared to 12 percent for 2011.
View our 2-year, rolling real estate reports for the greater Indy metro area.