Housing Market Update

March 27, 2019

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So this morning I got an email from the Indiana Association of Realtors… and it is one of my favorites.

Indiana Realtors Housing Data!

(February 2019)

While the information can be a little dry for people who don’t work in this industry, it is how we take the real estate temperature and the fact we watch it so closely is a big part of why you should use a Realtor whenever you buy or sell a home.

Here are some of the important year over year numbers, and a quick bit on what they mean to you. (For those of you that just want the bottom line of market conditions…just skip to the summary. If you want the nuts and bolts of why, then read through)

Closed home sales increased 2.3% to 5,022 – A 2.3% increase in closed home sales over February of 2018 would seem pretty positive, but this can be weather driven, and as warm and dry as late December and early January were this year; I chalk it up to exactly that.

Median sales price of homes increased 4% to $154,900 & Average sales price of homes increased 3.7% to $178,381 – These two data points are being driven by limited inventory, general inflation, and increases in the price of new home construction. New home prices are going up do to material cost increases, which are currently outpacing baseline inflation.

Percent of original list price received at sale decreased 0.1% to 95.3% – This number is purely indicative of how good of a job Realtors are doing Indiana of pricing homes correctly to the market. Still above 95% which is pretty solid considering how fast and far this real estate market has changed over the last 3 years.

Pending home sales increased 4.2% to 6,348 – Like closed home sales, this number can be very much driven by weather this time of year. However, given the rougher weather we had in February, it is impressive that 4.2% more houses went under contract than  during the same period of the previous year.

New listings decreased 3.5% to 6,710 – Inventory of homes for sale decreased 3.1% to 22,457  – Months supply of homes for sale decreased 3.2% to 3 months – This is a sign that it may be another frustrating year for buyers. If there has been one struggle in Central Indiana over the last couple of years, it has been a lack of inventory. On the other hand, if you are looking to sell your house, these kind of numbers are great for you.

Summary: For another year we are starting out in a strong sellers market. Prices are moving up, sales are brisk, and inventory is still ridiculously low. The only really good new for home buyers is that interest rates have fallen some again, so borrowing money is cheaper than it was at the end of last summer.