May 2021 residential real estate market strong going into summer
One full year after central Indiana real estate began to see unprecedented activity, home prices continue their double-digit increase
INDIANAPOLIS – The May residential real estate market continued its trend of high activity going into the summer. Monthly real estate statistics from F.C. Tucker Company revealed that pended home sales decreased 0.9 percent compared to May 2020, which was one of central Indiana’s busiest years ever for residential real estate. In addition, year-to-date home prices increased 14.1 percent, and available housing inventory decreased 51.6 percent compared to this time last year.
- The average May 2021 home sale price for the 16-county central Indiana region was $290,550, an increase of 18.4 percent.
- Available housing inventory dropped 51.6 percent compared to May 2020.
- Pended home sales decreased 0.9 percent compared to this time last year.
In May 2021, 4,303 central Indiana homes were purchased, down 0.9 percent from the 4,340 sold in May 2020. Specifically:
- Montgomery County showed the greatest increase in pended home sales with 16.4 percent growth compared to May 2020.
- Morgan County pended sales had the greatest decrease with 20.4 percent fewer homes sold in May 2021 compared to this time last year.
The sale price of homes in central Indiana continued to increase in May:
- Shelby County recorded the highest average year-to-date home sale price increase at 28.5 percent.
- Boone County had the highest average home sale price in the region at $409,019.
- Homes sold in 24 days on average, 44.2 percent faster than in 2020. Putnam County homes left the market 46 days faster than in May 2020 – the greatest decrease of the 16-county central Indiana area.
Central Indiana experienced a 51.6 percent decrease in home inventory in May 2021. That represents 2,029 fewer homes available for sale than in May 2020. Every county saw home inventory decreases, and 11 of the 16 counties saw inventory decreases of 41 percent or higher.
- Decatur County had the lowest inventory decrease – 9.4 percent – compared to May 2020.
- Hamilton County inventory decreased the most significantly in central Indiana – 73.9 percent – compared to this time last year.
“May continues to follow the trend of an extremely active and fast-moving residential real estate market that we’ve been experiencing for a full year now,” said Jim Litten, CEO of F.C. Tucker Company. “Buyers continue to see a great deal of competition for available homes in central Indiana, and I anticipate that trend will continue through the summer.”
Of the pended home sales in the region last month, 7 were priced $2,000,000 or higher; 35 were priced $1,000,000 to $1,999,999; 319 were priced $500,000 to $999,999; 998 were priced $300,000 to $499,999; 1,382 were priced $200,000 to $299,999; 1,252 were priced $100,000 to $199,999; and 310 were priced at $99,999 or less.