2009 14 percent decrease in homes for sale is good news for homeowners

Buyers and sellers both encouraged by recent changes

INDIANAPOLIS– Available homes for sale in the nine-county region dropped 14.5 percent in January 2009 with 2,613 fewer homes on the market than in January 2008. Total homes available for sale in January were 15,415, according to active listing statistics compiled by F.C. Tucker Company. Hendricks County, Shelby County and Marion County experienced the greatest decrease in inventory, with -22 percent, -20.5 percent and -19.7 percent, respectively. With fewer homes on the market, sellers are in a better position to transition to another home.

First-time home buyers also received good news this week with President Obama’s signing of the American Recovery and Reinvestment Act which includes a revised first-time home buyer’s credit effective for home purchases from Jan. 1, 2009 to Dec. 1, 2009. Differences from the 2008 first-time home buyer’s credit include no repayment and credit recapture on the sale within three years of purchase.

While the average number of pended homes sales in Central Indiana was down 19.2 percent overall in January 2009 compared to the same time last year, one Indianapolis-area county reported higher sales. Morgan County showed improvement over other counties in the nine-county region F.C.Tucker surveys, reporting a 9.1 percent increase in home sales.

This past January, 1,562 homes sold (pended) in Central Indiana. One year ago in January 2008, Central Indiana consumers purchased 1,934 homes. Litten said, “There’s still a great deal of buying activity, but it is still not at the levels we have come to expect.”

“As we move into the busy home-buying and selling season of spring, I expect more first-time home buyers will enter the market to take advantage of the new $8,000 tax credit,” said H. James Litten, president of F.C. Tucker Company’s Residential Real Estate Services Division.  “I’m also hopeful that Central Indiana’s competitive home prices, coupled with efforts by the Federal government to stimulate the economy, will boost consumer confidence and motivate consumers to get off the sidelines.”

Tucker’s just-released data also shows that two Indianapolis areas saw increases in average home prices. Homes in Johnson County sold for an average of $154,239 in January 2009, compared to $136,042 in January 2008, a 13.4 percent increase in the average home sales price. Also, Boone County showed a 3.1 percent increase in home sales price, bringing the average homeprice to $291,058.

As the tax season nears, Litten reminds buyers that there are additional advantages to purchasing a home. “Beyond the mortgage interest and real estate tax exemptions on your tax returns, homeowners may also qualify for residential energy credits of up to 30 percent of the cost for certain home improvements, including equipment and installation for solar electric power, solar water heating, wind energy and more,” said Litten.

Active Listings -Inventory

County	January 08	January 09	% Change
Boone	487	577	18.5%
Hamilton	2,850	2,650	-7.0%
Hancock	652	578	-11.3%
Hendricks	1,330	1,037	-22.0%
Johnson	1,260	1,186	-5.9%
Madison	1,015	950	-6.4%
Marion	9,454	7,593	-19.7%
Morgan	600	542	-9.7%
Shelby	380	302	-20.5%
TOTAL	18,028	15,415	-14.5%

Pended single-family and condominium home sales

County	January 08	January 09	% Change	Year-to-date % Change
Boone	65	37	-43.1%	-43.1%
Hamilton	352	267	-24.1%	-24.1%
Hancock	74	47	-36.5%	-36.5%
Hendricks	169	134	-20.7%	-20.7%
Johnson	158	99	-37.3%	-37.3%
Madison	117	93	-20.5%	-20.5%
Marion	913	801	-12.3%	-12.3%
Morgan	55	60	9.1%	9.1%
Shelby	31	24	-22.6%	-22.6%
TOTAL	1,934	1,562	-19.2%	-19.2%

Average Sale Price

County	January 08	January 09	# Change	% Change
Boone	$282,338	$291,058	$8,720	3.1%
Hamilton	$256,890	$220,052	-$36,838	-14.3%
Hancock	$135,580	$96,298	-$39,282	-29.0%
Hendricks	$146,826	$142,187	-$4,639	-3.2%
Johnson	$136,042	$154,239	$18,197	13.4%
Madison	$70,533	$60,624	-$9,909	-14.0%
Marion	$91,021	$81,780	-$9,241	-10.2%
Morgan	$125,315	$123,108	-$2,207	-1.8%
Shelby	$95,719	$63,767	-$31,952	-33.4%
Average	$135,449	$118,438	-$17,011	-12.6%