The national and local housing markets put forth another strong data set last week. Home sales prices are higher nationwide and sales volume has moved to a 2-year high.
According to the National Association of REALTORS®, 4.82 million existing homes sold on a seasonally-adjusted, annualized basis in August, representing a near 8% improvement from the month prior and a 9% jump from August 2011.
Home sales were unevenly split across price tiers, with more than half of all homes selling for less than $250,000. This suggests that the first-time home buyers and real estate investors continue to be active in today’s market as a foundation for growth is built.
According to the Existing Home Sales data :
- First-time buyers accounted for 31% of all home sales
- Real estate investors accounted for 18% of all home sales
- Other, repeat buyers accounted for 51% of all home sales
The Indianapolis & Central Indiana housing market is following suit. While the market has a way to go to return to 2007 levels, the progress of 2012 has felt more like years past, with eager buyers, more confident sellers and the return of multiple offers. August numbers further support these feelings. In the three-month period ending in August, Pending Sales increased 14.1% and New Listings remained relatively flat with a 0.6% increase to bring the Inventory of Homes for Sale down 11.1%.
Home Values also moved higher, with the median sales price increasing 4.2% to $134,900 for the quarter. This continues the trend for most counties in the Central Indiana market that we cover.
Also noteworthy is that distressed homes accounted for the smallest percentage of overall home sales since the real estate trade group starting tracking such data.
In August, homes in various stages of foreclosures accounted for 12% of all sales and sold at an average discount of 19% below market value. Short sale homes accounted for 10% of all sales and sold at an average discount of 13% below market value.
With election season in full swing, both politicians and economists will place extra emphasis on jobs and unemployment figures. Recognizing the relationship between jobs and housing demand, real estate professionals will do the same. The economy is and has been expanding consistently for years, albeit at a inconsistent pace. There’s reason for optimism going into the last third of 2012, and housing is playing a large role in that positive outlook.
Talk to your Newkirk Realty agent about what options you have ahead of you. 2012 is coming to a close….by 2013, the housing recovery may be fully underway!
*For the full August real estate market report, including data by county for Boone, Brown, Hamilton, Hendricks and Marion County, click here.