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Central Indiana Home Sales Rise for Fifth Consecutive Year For the fifth consecutive year, central Indiana residential real estate sales rose to a new annual level, keeping pace with 2004's record-setting year, according to the F.C. Tucker Company. The state's largest independent real estate firm is projecting that 2005 sales volume for the nine-county central Indiana region grew by 1.08 percent from year-end 2004. Average sales price grew by a healthy 5.1 percent from 2004. “Central Indiana has maintained a balanced housing supply/demand ratio in most submarkets, which has been beneficial in terms of pricing balance for both buyers and sellers,” said Jim Litten, president of F.C. Tucker's Residential Real Estate Services Division. He added that the 5.1 percent increase in average sales price to $155,490 for all nine counties reflects continued consumer confidence in the overall economy and specifically in Indiana real estate. Low mortgage rates and Internet savvy consumers contributed significantly to the strong residential real estate market. “The Internet is undeniably a huge benefit to consumers. Real estate information empowers the consumer to pre-select housing types, sizes, amenities and areas, well before their real estate agent begins the showing process. The Internet puts the consumer in charge and substantially shortens the home buying process,” Litten said. “In fact, more and more homebuyers are turning to the Web as their first real estate tool.” F.C. Tucker Company's Web site, www.TalktoTucker.com, averaged 70,000 visits per month for 2005 – a 38 percent increase from 2004 at www.TalktoTucker.com. During the peak home buying season consumers viewed more than one million detailed listings each month. A recent study by researchers at Penn State University found increased consumer access to real estate information online is redefining how consumers engage in real estate services, increasing visibility to more buyers, boosting competition and pushing housing prices higher. Mortgage rates remained low in 2005 even as the Federal Reserve implemented 14 consecutive rate increases since 2004. After the last increase in mid-December, mortgage rates remained at 6.125 percent, well below levels experienced by consumers in the 1980s. The interest rate and Internet combination, coupled with a strong belief in the safety of housing as a foundational investment vehicle contributed to 2005 being a positive year for the entire central Indiana residential real estate market and for F.C. Tucker Company specifically. Tucker's closed units were up 3.3 percent, and closed volume increased by 5.5 percent. “Central Indiana should experience another strong year in 2006,” Litten said. “Similar to predictions for the national housing market, central Indiana can expect housing to remain a solid investment and for prices to continue to climb.”
Existing and New Home Sales by County/Township The number of homes sold in the nine-county area increased 1.08 percent in 2005 to 30,287 up from 29,955 home sales last year. Once again, June was the most active month for real estate sales with 3,294 homes sold. January recorded the fewest number of closed sales with only 1,564 homes sold. This reflects the traditional bell curve of the real estate market – sales go up during spring and summer months and dip during the colder months. Hendricks County led the area in home sales growth in 2005 with 2,442 homes sold, up 6.73 percent from 2004. Hancock County, which experienced the highest percentage sales growth in 2004, experienced a slight decline in 2005 (1,013 homes sold, a decline of less than 1 percent). All but three central Indiana counties experienced overall sales growth.Number of Homes Sold
*Includes projected December 2005 statistics. Marion County's Washington Township once again experienced the highest number of homes sold with 2,250 sales, an increase of 3.32 percent from 2004. Six other Marion County townships posted more than 1,000 home sales in 2005 – more than any other county in central Indiana. Three townships in Hamilton County experienced sales at or above 1,000 homes sold in 2005 – they are Clay Township with 1,737 sales; Fall Creek Township with 1,237 sales; and Noblesville Township with 1,000 sales.
Existing and New Home Sales Prices by County/Township Central Indiana's average home sales price also increased 5.1 percent to $155,490 from $147,927 in 2004. Boone and Shelby county residents experienced the highest percentage increase in average sales prices in 2005. In Boone County, the average sales price increased 9.5 percent to $239,117. The average sales price in Shelby County rose by 8.6 percent to $113,082. Hamilton County continues to have the highest average sales price among the nine central Indiana counties at $248,240 – a 4.0-percent increase from 2004. Madison County had the lowest average sales price of $94,387, a 4.2-percent increase from 2004. Every county experienced an increase in average sales price during 2005.Average Sales Price
*Does not include December 2005 statistics. On a township level, home buyers found the least expensive homes in Marion County's Center Northwest Township, where the average sales price was only $49,205. The average sales price is based on 253 homes sales. Marion County's Center Southeast Township had the second lowest average sales price, $59,344 with 785 homes sold. Two central Indiana townships posted an average sales price above $300,000 in 2005. The highest average sales price was once again in Boone County's Eagle Township, which had an average sales price of $357,855, with 394 homes sold. Clay Township in Hamilton County was second-highest with an average sales price of $324,145, with 1,737 homes sold. Townships with average sales prices between $200,000 and $300,000 included Perry, Union and Marion townships in Boone County; Fall Creek, Washington and White River townships in Hamilton County; Brown and Marion townships in Hendricks County; White River and Clark townships in Johnson County; and Sugar Creek and Jackson townships in Shelby County.
Number of Days on Market by County In the nine-county area, Hamilton County sellers enjoyed the fastest turnaround; homes in the county were on the market an average of 69 days in 2005. Johnson County sellers saw a three-day decrease in the number of days homes were on the market – 73 days compared to 76 days in 2004. Marion County came in third with sellers experiencing an average of 75 days on the market. On average, homes took the longest to sell in Madison County (113 days). Morgan County sellers on average experienced five fewer days on the market compared to 2004. Three additional counties experienced an overall decline in number of days on market – Hendricks (2 days), Johnson (3 days) and Marion (1 day). Overall, homes in the nine-county area spent an average of 77 days on the market, one day longer than in 2004.Days on Market
*Does not include December 2005 statistics.
An Overview of Mortgage Rates The year closed with interest rates slightly above 6 percent, but still at historically low rates, having met or surpassed 6 percent for only four months of the year. Few home buyers today have experienced interest rates above 8 percent, but only 20 years ago, double digit interest rates were common. Buyers continued to be motivated in 2005 by these low rates and acted accordingly, allowing central Indiana to have another solid year. Those homeowners with variable home equity loans were affected negatively by the rate hikes, while new home buyers and those refinancing were able to take advantage of the low rates.30-Year Fixed Rate Monthly Mortgage Rates*
* Statistics drawn by Tucker Mortgage Company on Dec. 14, 2005.
Indianapolis Single-Family Building Permits Single-family building permits issued in the nine-county area in 2005 increased less than 1 percent to 12,270 permits through November. Shelby County experienced the greatest increase in building permits, up 49 percent from 2004 to 269. Other counties experiencing increases include Boone (6 percent), Hendricks (5 percent), Johnson (2 percent), Madison (6 percent) and Marion (1 percent). The remaining counties experienced decreases in housing permits issued, Hamilton (-4 percent), Hancock (-9 percent) and Morgan (-10 percent). These statistics, provided to F.C. Tucker Company by the Builders Association of Greater Indianapolis, do not include December 2005 figures.
F.C. Tucker Company is the largest independent real estate firm in Indiana and is ranked among the largest independent real estate firms in the nation. Its family of businesses includes a full range of real estate services – mortgages, title insurance, relocation services, a full line of insurance products, auctioning, homeowner services vendors and warranty products. Started in Indianapolis 87 years ago, Tucker has 48 statewide offices: 32 affiliate offices throughout Indiana and 16 Indianapolis-area offices. |