According to the new MIBOR Realtor Association quarterly Foreclosure Report, Indianapolis real estate is headed in a positive direction. MIBOR reported that foreclosure inventory has decreased by 18.4 percent in the 4th quarter of 2015, contributing to a decline that has spanned over the last two years.
"Since a spike in available foreclosures in 2011, these properties have seen a mostly steady decrease."
By the end of 2015, foreclosures made up about 8.5 percent of sales in Indianapolis, compared to 10.4 percent at the end of 2014 and 16.5 percent in 2013. When it comes to new listings, foreclosures made up only 10.1 percent in the last quarter of the year, which has decreased from the 11.9 of new listings last year and the 14.4 percent in 2013. Since a spike in available foreclosures in 2011, these properties have seen a mostly steady decrease.
According to the report, single-family properties still dominate foreclosure listings and sales, more so than townhomes and condos, but all property types experienced a decrease in foreclosure inventory, down 6.6 percent for 10,390 units. The report also showed that most foreclosure listings tend to be in the $120,00 and below price range, though all price points experienced a decrease, even in the $1 million range.
This brings the median price to $68,000 for foreclosures, which on average receive 88.4 percent of their original listing price. Combined with the $150,000 median for traditional sales, which typically recoup 93.5 percent of the original price, MIBOR calculated an average home sale price of $144,00 for properties in the area.
These numbers provide some hope for the future of real estate in Indianapolis. In 2013, Indianapolis was the top city for abandoned homes based on data collected by RealtyTrac, but the number of foreclosed homes overall has since been cut in half. With more buyers interested in renovating these types of properties, it's likely that number will continue to decrease.
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For the full 2015 Central Indiana Foreclosure Report, click here.>