Local December home sales show momentum into 2007
Central Indiana’s pended sales up nearly 5 percent in last month of ‘06

INDIANAPOLIS – Contrary to the normally tepid home sales in the winter months, December’s pended residential real estate transactions were up a noticeable 4.6 percent, compared with December 2005. What’s more, the year-to-date pended sales were less than 1 percent off the mark from all of 2005, which was a record-setting year in central Indiana.

There were 1,830 pended home sales in December 2006 – up from 1,750 during the same time period the year prior. On the year, central Indiana experienced an 0.4-percent decline from 2005, with 31,185 homes pended in 2006.

"The December statistics show that the Indianapolis-area real estate market is heading into 2007 with some momentum,” said H. James Litten, president of F.C. Tucker Company’s Residential Real Estate Services Division. “The unseasonably warm weather we had in December played a significant factor. As long as the snow and sub-zero weather remain at bay, we should see a strong first quarter in 2007.”

Only Johnson County saw a significant drop in December, with an 18.2-percent decline over December 2005. Madison, Boone and Hancock counties all experienced significant growth, up 53.2, 51.1 and 47.7 percent, respectively.

On the year, Madison County led the way with an 11.2-percent increase compared with 2005.

Pended single-family and condominium home sales

County

Dec-05

Dec-06

% Change

2005 YTD

2006 YTD

% Change

Boone

45

68

51.1%

843

873

3.6%

Hamilton

309

284

-8.1%

5,919

5,791

-2.2%

Hancock

44

65

47.7%

1,035

990

-4.3%

Hendricks

143

154

7.7%

2,521

2,590

2.7%

Johnson

132

108

-18.2%

2,345

2,236

-4.6%

Madison

79

121

53.2%

1,591

1,769

11.2%

Marion

918

941

2.5%

15,492

15,400

-0.6%

Morgan

43

50

16.3%

986

998

1.2%

Shelby

37

39

5.4%

566

538

-4.9%

TOTAL

1,750

1,830

4.6%

31,298

31,185

-0.4%

Increased inventory of available homes kept 2006 growth to a minimum; however, the tail end of the year showed signs of this overhang beginning to level off. While inventory reached levels more than 20 percent higher in 2006 than in 2005, that figure dropped to around 10 percent in December.

“We did experience a buyers’ market in 2006, but we expect to see the market come into balance in 2007,” Litten said. “Not only are we see inventory level off, but positive economic factors such as job growth and steady interest rates spell good things for the central Indiana residential real estate market in 2007.”

Active listings, Dec. 2005 vs. Dec. 2006

County

Dec-05

Dec-06

% Change

Boone

451

482

6.9%

Hamilton

2,377

2,585

8.8%

Hancock

582

593

1.9%

Hendricks

1,182

1,238

4.7%

Johnson

1,067

1,219

14.2%

Madison

1,197

1,226

2.4%

Marion

7,794

8,821

13.2%

Morgan

566

598

5.7%

Shelby

313

375

19.8%

TOTAL

15,529

17,137

10.4%

Even nationally things are beginning to look up, according to the National Association of REALTORS® (NAR). The NAR’s Pending Home Sales Index for November 2006 was down 11.4 percent compared with November 2005. However, according to the NAR, “The decline from year-ago levels has been steadily narrowing since July, which was 16 percent lower than the same month in 2005.”

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Editor’s Note: All statistics were compiled by F.C. Tucker Company from a report drawn from MIBOR statistics on Jan. 8, 2007.

 

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