INDIANAPOLIS, IN–(January 19, 2010)–The housing market came through the past year in rather better shape than might have been expected; home sales were down only 4 percent (969) from 2008. In the past year we experienced instability in financial markets and the subsequent sharp contraction in the economy, and some dynamics in the market remain: unemployment and buyer confidence. 

The 4th quarter housing market in the Indianapolis area flourished with homes posting a dramatic rise.  Home sales were up 15 percent from 4th quarter 2009 versus 4th quarter 2008.  Buying activity in nine counties surrounding Indianapolis indicates that improved affordability is prompting many first-time buyers to get off the fence, out of their rentals, and into the market. 

A look at county-by-county increases in 2009 home sales from October to December provides some of the details:

• Boone       UP    56%   to      211
• Johnson     UP   31%   to      477
• Hamilton   UP   28%   to   1,131
• Shelby       UP   27%   to     109
• Hendricks  UP   16%   to     449
• Marion      UP   15%   to   2,811
• Madison    UP   15%   to     330
• Hancock    UP   14%   to     229
• Morgan      UP   11%   to     186

Average Price of Homes Sold in the Indianapolis area December, 2009 vs. December, 2008: 
$142,010    December, 2009
$128,479    December, 2008

Dan Breault, Regional Director, RE/MAX of Indiana states “purchasers are clearly taking advantage of affordable prices and rock bottom interest rates.  Those who missed the boat in years past have found that sitting on the sidelines could be a costly move.  Prices are on the upswing and inventory levels are tightening, so the push toward homeownership is expected to continue throughout the spring of 2010.”

December pended home sales (those homes expected to close within the next 30 days) were up 11 percent in December, 2009, compared to December, 2008  The December, 2009 total = 1,530 pended home sales.

Article provided by RE/MAX of Indiana