June home sales in the nine-county Indianapolis area dropped 10 percent when compared to June 2009, while average home prices
shot up 7 percent.
According to data compiled by RE/MAX of Indiana, 2,253 homes sold in central Indiana in June 2010, a decline of 237 when compared with 2,490 in June 2009. The average home price in June 2010 was $159,142, roughly 7 percent higher than the $149,373 recorded a year earlier.
"The gain in home prices is a hopeful sign that the market is in a good position for people on the sidelines," said Dan Breault, regional director of RE/MAX of Indiana. "The stabilizing home prices, an improving economy and mortgage interest rates that remain historically low will help the housing market avoid disruptive and painful bubble-bust cycles."
The decline in home sales was attributed in part to the expiration of a sizable federal tax incentive, which required homebuyers to enter escrow by April 30.
Marion County remained the most active county in the area, despite a 6-percent drop in home sales. The county recorded 1,050 homes sold in June 2010, down 72 from 1,122 in June 2009. The average home price increased 11 percent, from $113,557 TO $125,790.
Hamilton County logged the highest average home price in the area: $253,308 for June 2010, a 7-percent increase from $236,949 a year earlier. The number of homes sold went in the opposite direction, dropping 17 percent from 529 in June 2009 to 439 in the same month this year.
Of the nine counties, only three had positive sales gains in June: Hancock (4 percent), Morgan (25 percent), and Shelby (35 percent). Boone County saw the highest average price appreciation, climbing from $228,821 in June 2009 to $264,778 in June 2010 for a 16-percent hike.