With spring just beginning to descend on us, selling season has yet to fully kick off. Because of this, Indianapolis and other areas throughout the country are seeing a real estate market with low inventory. At first glance, this may seem like bad news, but that perception couldn't be less true.
According to data recently released by MIBOR Realtor Association, in spite (or because) of diminishing inventory, central Indiana has seen months of increasing sales activity and steadily rising listing prices. For your convenience, we've broken down where local real estate has seen the most growth this quarter and how low inventory has played a role:
The data indicated that closed sales have increased 9.6 percent in February, compared to that of the year before, and grew 10 percent over the same quarter last year. With fewer homes to choose from, buyers are likely seizing up the best opportunities as quickly as possible.
For the same reason, pending sales are up 14 percent for the month and 15 percent for the quarter.
New listings have increased by 10.5 percent and 0.7 percent for the month and quarter, respectively. As we approach the "heart of selling season," we should start to see new listings pick up speed.
Low inventory and high demand is the perfect recipe for driving up prices. This quarter, the average sales price went up by 2.2 percent in February to $170,125. That's a 3.6 percent increase in three months. Median sales prices also rose, by 2.7 percent to $135,000. This is a 6 percent growth for the quarter.
Citing the continued job growth and low mortgage rates nationwide, the new MIBOR Monthly Indicator sees these upward trends as signs that we are in for a healthy upcoming selling season. For now, anyone selling a property has been handed a special opportunity to take advantage of consumers competing for the best available real estate.