If you did not catch my first blog in this 3 part housing report series, you can read it on my blog feed. In part 1, I introduced you to a variety of 2015 housing report findings from Upstate Alliance of Realtors (UPSTAR). These report compared trends from December 2014 to December 2015. Today I continue our look at these findings of the Northeast Indiana housing market as they provide forecast indicators about the 2016 market trends.
All numbers presented are for the Northeast Indiana counties of Adams, Allen, DeKalb, Huntington, Noble, Wells, and Whitley.
The good news for those selling a home is that the percentage of the original price received stayed in the mid-90s range, increasing from 93.3% to 94.1%, the local sellers market is improving. In fact, the only market metric that that decreased was the affordability index.
For those unfamiliar, the affordability index is a way to track over time whether housing is becoming more or less affordable for the typical household. Things that affect this number include housing prices, interest rates, and income. The higher the number the more affordable the home. From 2014 to 2015 this dropped from 255 to 247 (a decrease of 3.1%), indicating that housing has become slightly less affordable. Even with the drop, however, this number remained fairly consistent over the past year.
Now let’s look at the number of new listings over the past year as compared to 2014. Months of April, May, June, and July saw listings higher than other months with all months up over 1,000 listings. This was consistent across both years of 2014 and 2015. Also in both years December saw the least amount of listings (around 500), at numbers less than half of the higher months. Overall, the number of listings were down 1.7%. In 2014 there were 10,767 listings in the surrounding area, and in 2015 this number dropped slightly to 10,578.
Another statistic to look at is pending sales. The lowest month of sales in 2015 (December) was 422 and the highest month of sales (April) was 876. The graph of monthly fluctuation of pending sales is much more flat than that of new listings. So although numbers are still down in colder, winter months compared to spring and summer, there is not as much of a difference of pending sales as there is with new listings.
A third statistic is average sales price. Overall from 2014 to 2015, this rose 5.2%. This shows there is a market for those buying homes and also indicates those selling are getting more than they asked for a year ago. June 2015 and July 2015 were the two months that saw the highest average sales prices with June at $153K and July at $147K. For comparison, the lowest month was February at $128K.
Check back with me as will be posting our third and final blog on the 2015 Housing Report Findings. Areas I will focus on include a comparison of monthly percentages of original listing prices received, the affordability index, and home inventory. This could give you a better idea of when exactly to list your home by month.
Data Source: http://upstarindiana.com/