First-time homebuyers boosting residential sales

Back to TopCommentsE-mailPrintBookmark and Share

Low-priced homes and foreclosures are driving a large chunk of residential real estate sales in Indianapolis, largely due to first-time home buyers taking advantage of a federal tax credit, according to a report released today by Re/Max of Indiana.

Through August, 68 percent of homes sold in the nine-county Indianapolis area were priced under $150,000, up from 43 percent in 2008.

Re/Max attributed the higher number to an $8,000 tax credit available to first-time home buyers. The credit expires Dec. 1.

“It’s definitely driving sales, absolutely,” Re/Max Select agent Brian DeMarco said. “We’re definitely seeing a lot of people wanting to become first-time home buyers.”

DeMarco said homes priced under $150,000 comprise a large percentage of Indianapolis-area homes anyway. In August, the average home price was $146,999, a 1.3-percent increase from the same month last year.

About 8,000 homes on the market in the 9-county area are priced under $150,000.

In Marion County, the average home price last month was $109,597, up 1.2 percent from a year ago.

Sales of foreclosed properties, which typically sell below market prices, made up 22 percent of area home sales in August. While still relatively high, the percentage has fallen steadily since a peak of 46 percent in January.

“It got as bad as nearly half of all sales involved a foreclosure,” DeMarco said. “Realistically, we are still currently working with banks a lot more than we used to.”

The average price of a foreclosed home in the Indianapolis area in August was $66,885. 

The number of foreclosed homes being sold locally is outstripping the number coming on the market, which is good news for the housing market, DeMarco said.

Overall, the number of active listings in August fell 15.5 percent from the year-ago period, to 16,234, according to Re/Max.



  • My husband and I bought out first home this year. I was easily able to amend our 2008 taxes and received the tax credit fairly quick. Last year I was disappointed we did not buy, but after getting our new home I was so glad we waited.
  • We have seen first time home buyers range from 18 years of age up to 65+ and buy fixer-upper homes right up to move-in ready homes at discounts. It has really been an exciting year as a REALTOR helping people buy and move into their new home!!
  • In my opinion foreclosures are the best deal if you have low budget. Check out here great deals about foreclosures for sale.

Post a comment to this story

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

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. Hello Dear Are you tired of Seeking Loans and Mortgages,have you Been Turned down constantly By your banks and Other Financial Institutions or Micro Finance scheme. This is let you know with 100% guarantee that we Offer loans ranging from $1,000 Minimum to $1,000,000.00 Maximum at 3% interest rate per Month. We give out LOANS for developing business. a competitive edge/business expansion. email address: michealscottloan124@gmail.com We offer the following kinds of loans and many more; * Personal Loans ( Unsecured Loan) * Business Loans ( Unsecured Loan) * Consolidation Loan * Combination Loan * Home Improvement * Xmas Loans for contact to seek for loan email this email address: michealscottloan124@gmail.com Thanks

  2. My name is Mr Henry Josh and i live in the USA California and life is worth living right now for me and my family and all this is because of one man sent by GOD to help me and my family, i once had a life filled with sorrow because my first SON needed a kidney transplant and all our savings were going towards his medications and this normally leaves us with no money to pay our bills or even put enough food on our table and our rent was due and no funds to pay these bills and life felt so unfair to me and every night my wife will cry herself to sleep every night until one day, i was browsing through yahoo answers and i saw a striking advert of a man that gives out personal loans and that the offer is opened to all and i have heard so many things about internet scams but at this point of my life, i was very desperate and ready to take any risk and at the end of the day, i applied for this loan and from one step to another, i got my loan within 12 hours through bank transfer and you know, it was all like a dream and i called Mr Daniel Jones A Man who is the GOD sent lender i found and said, i have received my loan and he smiled stating that to GOD be the glory and i was so shocked as i have never ever seen anyone with such a GOD fearing and kind heart and today, i am the happiest man on earth because by GOD’S grace, my SON kidney transplant was successful and today he is healthy, i and my family are living very comfortable and happy and if you are in my former situation or in serious and legitimate need of a loan, you can reach this GOD sent lender via fidelityloanfirm@outlook.com

  3. Greetings to everyone reading this comment!!! I am Greg William by name. I am out here to recommend the effort of Mark Oscar,I was in need of a consolidation loan amount of 50,000 and as soon as I got in contact with Mark Oscar Loan Firm on Wednesday last week and on Friday last week as well I receive an alert from my bank(Royal Bank of Scotland Group) that the fund was transferred,I want everybody on this site to contact Mark Oscar now via email on how to get a loan because I got my loan from them and I am very happy,so contact them now. Oscarloanfinance@hotmail.com Thanks!!!!!!

  4. Elected officials, like Mourdock, get vested in 8 years. It takes 10 years for all other public employees, most of whom make a lot less money. So much for the promise to finish out his term.

  5. Great state treasurer and a good man!! Just curious if the folks who didn't quite understand his quote would like to tell my daughter-in-law that God didn't intend her! Mourdock's comment was correct but twisted and the article didn't mention that his opponent and the press let the impression stand that Mourdock meant that the rape was intended. Stupid people!!