March Market Watch Report
Central Indiana home sales decline in March
Winter weather impacted home sales, but spring is just around the corner
INDIANAPOLIS – Pended home sales in central Indiana declined 10.8 percent in March 2007 as compared to March 2006, but showed improvement compared to February. March 2007 showed 2,763 pended home sales, compared with 3,097 this time last year. Year-to-date pended sales shows a modest 8.9 percent decline compared to March 2006.
“We’re transitioning into spring and the peak season for home-buying,” said H. James Litten, president of F.C. Tucker Company’s Residential Real Estate Services Division. “As we leave the winter weather behind, the market will continue to improve and homes will begin to sell more quickly.”
Shelby County experienced the most significant sales increase last month, with pended home sales up 34.9 percent from March of last year. Hancock was the only other county to see an increase, up 10.6 percent from the same time period last year. The most significant decline was in Morgan County, with a 25.2 percent decrease as compared to March 2006.
Year to date, Boone, Madison and Shelby Counties have all experienced an increase, with sales up 3.1 percent, 4.7 percent and 6.2 percent respectively, compared with March of last year.
Available inventory for March 2007 increased by 6.5 percent compared to March 2006. Madison County experienced the most significant decline, with a 15.5 percent inventory decrease from this same time last year.
“As we continue to see low levels of inventory increases, the market will continue to level off and move closer to a balanced market,” Litten said.
According to the National Association of REALTORS® (NAR), the unusually bad weather in February is most responsible for the performance in pending home sales. The NAR’s Pending Home Sales Index for February 2007 was down 8.5 percent compared with February 2006. NAR says the data suggests an underlying stabilization is taking place in the housing market, but it will take another month or two to clarify.
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Editor’s Note: All statistics were compiled by F.C. Tucker Company from a report drawn from MIBOR statistics on April 9, 2007.