Indiana Residential Real Estate Market Analysis

January 1 to June 30 2011

Indiana Realtor Association

Indiana Residential Real Estate Market Analysis

Total State statistics:

While a -11.2% change in closed sales doesn’t look positive it should be noted that Jan-June 2010 transaction numbers were influenced by the “Federal Tax Credit” on home purchases. This accelerated the number of transactions that occurred in the first half of the year and depressed the number of transactions in the second half of the year, so second half comparisons should improve considerably.

It is healthy to note that the median sales price rose, which might signal that fewer low price REO  sales were occurring. Also the decline in inventory is another signal that the market is beginning to return to balance and the significant buyers market will lose its leverage as buyers have fewer properties to choose from.

By comparison to the state figures, the Clark County market has not begun to rebound. Inventory has risen and sales declined, which could both lead to the decline in Median Sales Price due to an abundant of properties to choose from causing continued pricing pressure.

Unlike Clark Co. Floyd has fared better this year. Inventory has declined faster than sales have declined leading closer to a balanced market. Although June’s median sales price was down, the YTD median has climbed 5.7%. We expect and hope this trend continues in Floyd Co.

Once again the decline in inventory outpaced the decline in sales in Harrison Co. leaving fewer properties for buyers to choose from. We haven’t seen a rebound in pricing as of yet but a continued reduction in inventory will eventually cause prices to stabilize and rise. Again the YTD median price was somewhat depressed but not near as badly as the June price.

Scott Co. might be the brightest spot but it comes from the most depressed market we cover. Inventory is down considerably, sales are up slightly, but the sever price decline for the year is worthy of further study.

All in all keeping in mind the tax credit acceleration of spring 2010 I don’t believe we could have hoped for a better comparison. There are more and more signs that the market has bottomed, inventory is balancing and prices have firmed and are beginning to rise in some locations. Stay tuned for next quarters results.

DJ Hines

Schuler Bauer Real Estate Services