IBJNews

Indianapolis-area home sales take nosedive

Back to TopCommentsE-mailPrintBookmark and Share

Home-sale agreements in central Indiana took an 11-percent nosedive in October, continuing a recent streak of declines amid higher mortgage rates and tighter inventories.

Real estate agency F.C. Tucker Co. said Thursday that home buyers notched 1,941 pending sales in the nine-county area last month, down 11 percent from 2,181 sales reached in October 2012.

Although area sales are up 16 percent through the first 10 months of the year, the trend has slammed into reverse in recent months. Year-over-year sales have fallen in three of the last four months, including a 1.6-percent dip in September.

Mortgage rates had been near all-time lows this year through mid-May, but began creeping up in June. They remain low on a historical basis, but not quite the bargain they were in the spring.

The average rate for a 30-year fixed-rate mortgage jumped to 4.38 percent this week, from 4.28 percent last week, according to Bankrate.

“Though a decrease in home sales is typical as we move deeper into the year, consumers may also be hesitant to jump in as they cautiously watch the potential for increasing interest rates,” said Jim Litten, president of F.C. Tucker Company. “Still, we expect prices to continue rising due to the smaller supply of homes across Central Indiana—a positive sign of market stabilization.”

Marion County posted the highest pending sales in the area, with 821 agreements on October. However, that was an 11.3-percent decline from 926 sales in the same month last year.

On a percentage basis, Hamilton and Morgan counties were the biggest losers. Morgan sales dropped from 86 to 66, for a 23.3 percent loss. Hamilton sales fell 21.7 percent, from 461 to 361.

Madison County was the best performer, increasing sales 9.3 percent in October to 141 agreements. Sales also were up in Johnson County, rising 5.7 percent to 185.

Available homes for sale in the region dropped 6.7 percent, from 12,232 in October 2012 to 11,410 last month. The average price rose about $10,000—from $155,947 to $165,510.

One home in the area that pended in October was priced more than $2 million, and four were priced between $1 million and $2 million. Fifty-two were priced between $500,000 and $1 million.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. With Pence running the ship good luck with a new government building on the site. He does everything on the cheap except unnecessary roads line a new beltway( like we need that). Things like state of the art office buildings and light rail will never be seen as an asset to these types. They don't get that these are the things that help a city prosper.

  2. Does the $100,000,000,000 include salaries for members of Congress?

  3. "But that doesn't change how the piece plays to most of the people who will see it." If it stands out so little during the day as you seem to suggest maybe most of the people who actually see it will be those present when it is dark enough to experience its full effects.

  4. That's the mentality of most retail marketers. In this case Leo was asked to build the brand. HHG then had a bad sales quarter and rather than stay the course, now want to go back to the schlock that Zimmerman provides (at a considerable cut in price.) And while HHG salesmen are, by far, the pushiest salesmen I have ever experienced, I believe they are NOT paid on commission. But that doesn't mean they aren't trained to be aggressive.

  5. The reason HHG's sales team hits you from the moment you walk through the door is the same reason car salesmen do the same thing: Commission. HHG's folks are paid by commission they and need to hit sales targets or get cut, while BB does not. The sales figures are aggressive, so turnover rate is high. Electronics are the largest commission earners along with non-needed warranties, service plans etc, known in the industry as 'cheese'. The wholesale base price is listed on the cryptic price tag in the string of numbers near the bar code. Know how to decipher it and you get things at cost, with little to no commission to the sales persons. Whether or not this is fair, is more of a moral question than a financial one.

ADVERTISEMENT