The Indianapolis spring market is booming. In fact, this is the strongest first-quarter since 2007.
Existing home sales in central Indiana soared 19.2 percent in March, except for February, when they dipped to 1.6 percent. Closed sales in the area have risen every month on a year-over-year basis since October 2015. The increase came amid a continuing increase in prices and a big decline in the housing inventory.
In the 13-county area, closed home sales rose from 2,579 in March 2016 to 3,074 last month, according to data recently released by MIBOR Realtor Association. The increase came with a continuing increase in prices and a large decline in the housing inventory. The total number of active home listings in March dropped 17.1 percent from 10,119 a year ago to 8,391.
The run on homes has left hopeful buyers scrambling to compete amid a shrinking supply, which has led to higher prices. Historically low interest rates, job growth and a loosening of lending standards spurred the strongest growth in the region since 2006, according to MIBOR Realtor Association. A stable economy has intensified demand from would-be buyers, but the number of properties listed for sale has been steadily fading. The result of this trend is prices rising faster than incomes, homes staying on the market for fewer days and a limit on just how much home sales can grow.
It’s a situation that rewards would-be buyers who can act quickly and decisively.
Demand for new homes in central Indiana bounced back in March after an off month in February, snapping a 14-month streak of year-over-year increases. Recognizing the strength of the market, builders have begun erecting new homes at a pace not seen since before the recession. Housing starts rose 18 percent in the first quarter from the same period a year ago.
If you’re looking to buy or sell a home, give Phil Hotle a call today at 317-705-2559.