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Sales of existing homes up nationally in April

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Americans bought more previously owned homes in April, a hopeful sign that the weak housing market is gradually improving.

The National Association of Realtors says home sales rose 3.4 percent last month to a seasonally adjusted annual rate of 4.62 million.

That brings home sales back near the pace in January and February — which was the best winter for sales in five years. Still, sales are well below the nearly 6 million per year that economists equate with healthy markets.

A mild winter encouraged some people to buy homes earlier. That drove up sales in January and February, while making March weaker.

The median price for homes sold in April rose to $177,400, up 10.1 percent from a year ago.

In the 13-county central Indiana area, home sales were up 18 percent in April, according to the Metropolitan Indianapolis Board of Realtors. Median sale prices rose almost 7 percent, to $131,000.

Modest increases in home sales are the latest sign that the market could be starting to turn around nearly five years after the housing bubble burst.

The sales pace in January was the highest since May 2010 — when a popular home-buying tax credit expired. Builders are more confident and are starting to build more homes. Mortgage rates have never been cheaper. And the job market is improving, which has made more people open to buying a home.

Employers have added 1 million jobs in the past five months. And unemployment has dropped a full percentage point since August, from 9.1 percent to 8.1 percent in April.

Still, many would-be buyers are having difficulty qualifying for home loans or can't afford the larger down payments being required by banks.

Even some would-be home buyers are holding off because they fear that home prices could keep falling.

Previously occupied homes represent 80 percent of the overall home market.

Builders have grown more confident since last fall, in part because more people have expressed an interest in buying a home. In May, builder optimism rose to the highest level in five years, according to the National Association of Home Builders/Wells Fargo builder sentiment index.

Last week, the Commerce Department reported that builders started work on more homes and apartments in April, pushing housing construction to a seasonally adjusted annual rate of 717,000 homes. That was near a rate of 720,000 homes and apartments being built in January, which had been a three-year high. But even with the recent strength, housing construction remains at roughly half the pace that economists consider a healthy market.

In the nine-county central Indiana area, the number of permits filed to build single-family homes dropped 2 percent in April compared to the same month of 2011. However, permits are up 8 percent in the first four months of the year compared to a year ago.

Many economists believe that 2012 could be the year that housing finally makes a positive contribution to overall economic growth. That hasn't happened since 2005, shortly before the housing boom went bust.

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  1. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

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