13 WTHR - Indianapolis News |Central Indiana home sales down

Central Indiana home sales down

Hamilton County - Despite disappointing national home sales figures, experts say central Indiana's real estate market remains a good deal for buyers.

August brought a surprising drop in homes sales nationwide after increases over the last four months, dropping nearly three percent according to the National Association Of Realtors, and providing more evidence that the housing market remains fragile.

"I suspect some of that has to do with so many people taking advantage of the $8,000 first-time homebuyer credit and now that demand has been met and demand is tailing off a bit," said Greg Cooper, real estate broker.

Tough new lending standards and new rules for appraisals may also be contributing factors in the drop. The slide in Indianapolis homes sales in now in its eighth straight month, off 13 percent from August 2008 to August 2009. But real estate experts say central Indiana hasn't suffered as greatly as other parts of the nation.

"In a market that's been trending downward this year, sales have continued to be fairly consistent here, which I see as positive," said Dick Richwine, real estate broker.

New home construction has mirrored the sales spiral in the recession. New home permits in central Indiana are down 28 percent so far this year compared to 2008, with Johnson County taking the biggest hit - off 54 percent.

While new home permits are down, Hamilton County remains the bright spot in central Indiana, especially Fishers. But the fast-growing town has slowed considerably from its heyday when 1,400 new homes were going up each year.

Through August, the town is putting up more single family homes that Carmel, Noblesville and Westfield.

"Of course, the last two years have been a dramatic decrease in the numbers, down to about 500 permits we expect this year," said Wes Bucher, Fishers development director.

While national home sales were disappointing last month, deals remain for buyers and likely will for months to come.

All the counties in the metro area saw a decline in home sales. The hardest hit is Hendricks County with a 29-percent drop. Hamilton County home sales fell 17.5 percent. In Marion County, sales were down by eight percent. The State Realtors Group says the good news is that home values have stabilized.