Home sales fell 39 percent from January to December, though the median price of property increased.
That’s according to the latest numbers released by the Southern Indiana Realtors Association, commonly called SIRA. The association covers Clark, Floyd, Harrison and Scott counties. Its numbers relate only to homes sold through Realtors.
In December, 172 homes were sold, compared to 105 in January. For comparison sake, 173 homes were sold in January 2008. The median sale price of homes increased from about $94,000 in December to $108,000 in January. The median sales price in January 2008 was $115,900. About $11 million worth of real estate was sold in January.
Despite the grim numbers, early indicators suggest a turnaround when February numbers are released next month, said Suzann Slayton, president and chief executive officer at SIRA.
The January numbers are reflective of home sales that were pending in December, she said.
As of last week, there were 283 pending sales waiting to be closed on, representing about $67 million in real estate property, she said.
“Probably a good portion of those will come through in February, some will come through in March,” she said. “This shows a dramatic increase.”
It also supports what she has heard from many Realtors who have said business is increasing. Real estate has seen a downturn in sales across the nation as lenders have become more conservative in a troubled U.S. economy.
“Monthly numbers are probably quite volatile,” said Uric Dufrene, Sanders chair of the business department at Indiana University Southeast in New Albany. However, he notes the decline in sales shows that the area is not immune to the national crisis.
Foreclosures also have risen in both Clark and Floyd counties during the last month. And, during the last year, new home construction has dropped off in Clarksville and New Albany. Jeffersonville saw an increase in new construction from 2007 to 2008, though a city official said that could be attributable to a recent annexation.
It seems counter-intuitive to see a big drop in sales, but an increase in the average price, Dufrene said. If some of the sales came through in a high-priced development, it would influence value numbers in one month, but may not be reflective of overall values across Southern Indiana, he said.
Dufrene said the encouraging level of pending sales is not entirely surprising, because it is a buyer’s market.
“Improvement in housing and the national economy are definitely related,” he said.
“Homeowners have suffered a loss in value nationally, and this decline in wealth is having an impact on consumer behavioral patterns. When you throw in declines in equity values and tighter financing in general, all of this is combining to have a negative impact on consumer spending.”
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