Historic lows for mortgage interest rates fuel dynamic seller’s market
INDIANAPOLIS – July’s residential real estate market continued to see homes selling very quickly, despite another increase in housing prices. Monthly real estate statistics from F.C. Tucker Company revealed that July’s pended home sales decreased 4.6 percent compared to July 2020. In addition, year-to-date home prices increased 13.6 percent, and available housing inventory decreased 26 percent compared to this time last year.
- The average July 2021 home sale price for the 16-county central Indiana region was $299,118, an increase of 13.2 percent.
- Available housing inventory decreased 26 percent compared to July 2020.
- Pended home sales decreased 4.6 percent compared to this time last year.
In July 2021, 4,258 central Indiana homes were purchased, down 4.6 percent from the 4,462 sold in July 2020. Specifically:
- Jennings County showed the greatest increase in pended home sales with 60 percent growth compared to July 2020.
- Jackson County pended sales had the greatest decrease with 31.4 percent fewer homes sold in July 2021 compared to this time last year.
The July sale price of homes in central Indiana continued to increase:
- Shelby County recorded the highest average year-to-date home sale price increase at 28 percent.
- Boone County had the highest average home sale price in the region at $425,288.
- Homes sold in 20 days on average, 47.4 percent faster than in 2020. Putnam County homes left the market 34 days faster than in July 2020 – the greatest decrease of the 16-county central Indiana area.
Central Indiana experienced a 26 percent decrease in available home inventory in July 2021. That represents 897 fewer homes available for sale than in July 2020. Thirteen of 16 central Indiana counties continued to see inventory decreases.
- Shelby County had the largest inventory increase – up 48.3 percent compared to July 2020.
- Hamilton County inventory experienced the greatest decrease in central Indiana – down 57.7 percent – compared to this time last year.
“As expected, the fast-moving residential real estate market has continued into the summer, fueled by mortgage interest rates that remain at all-time lows,” said Jim Litten, CEO of F.C. Tucker Company. “Available housing inventory is increasing slightly, but the seller’s market will remain for the foreseeable future.”
Of the pended home sales in the region last month, 6 were priced $2,000,000 or higher; 42 were priced $1,000,000 to $1,999,999; 319 were priced $500,000 to $999,999; 1,017 were priced $300,000 to $499,999; 1,357 were priced $200,000 to $299,999; 1,219 were priced $100,000 to $199,999; and 298 were priced at $99,999 or less.