Market Watch for December 2021
December 2021 broke the record for highest level of December Pending Sales in over a decade! How’s that for a traditionally quiet month with lots of holidays?
Yes, seasonality plays into the housing market this time of year but Central Indiana buyers and sellers didn’t let that damper their enthusiasm in the housing market.
“Closed sales remained strong,” says Shelley Specchio, the Metropolitan Indianapolis Board of REALTORS President. Accordding to the report from MIBOR, REALTORs reported 3,323 Closed Transactions for the month of December.
Speaking of the national housing market in December, Dr Elliot Eisenberg says, “… it continues to go from strength to strength. While there were some hopes that available inventories would rise, that has so far not materialized, and year over year inventory levels continue to decline.”
Doesn’t look like the seller’s market is going anywhere in the near future.
December 2021 – Madison, Hamilton & Hancock Counties
Madison County – December 2021
Madison County saw a rise in median home price and closed sales. It also took a hit on months of inventory when compared to November.
Here are some of the market statistics for Madison County:
- Median Home Price gained 3.6% over November moving from $165,000 to $171,000. Year over year, the gain has been 20.9%!
- Closed sales were up from 167 in November to 193 in December – a gain of 15.6%.
- Pending sales dropped to 158 from 186 in November.
- Days on Market did make a significant jump of 42.1%. November was 19 Days on Market and December came in at 27 Days on Market.
- Absorption Rate (months of inventory) dropped below 1.0 again in December from 1.2 months in November.
Days on Market usually rises during the winter months, so I’m not at all concerned about that particular statistic.
The median sales price stat is further proof that homes are still appreciating in this Seller’s Market. Good News for home sellers! This statistic may look different this time next year, however…
Overall. Madison County is enjoying an upbeat housing market. We could definitely use so more inventory, though! The Spring 2022 Market will prove interesting to watch…
Hamilton County – Dec 2021
Hamilton County continues to tear it up in the housing market. It seems to be the place everyone wants to be. They have a serious inventory shortage that is fueling the home value growth, there. Take a look at these stats:
- Median Sales Price of $400,000 – up 5.3% from November when it was $380,000.
- Closed sales were down in November to 532, from 629 in November.
- Pending Sales also showed a monthly loss from November of 33.8%.
- Days on Market dropped again to 15 from 16 in November.
- Active inventory is only 153 homes, down 14% from November’s 178 homes.
- The absorption rate (months of inventory) continues to hold at 0.3 months – the lowest in the MIBOR 16 County area.
Hamilton County is definitely a hot spot in Central Indiana. And, no one is surprised! The county has some of the best cities attracting people like Fishers, Carmel, Westfield and Noblesville. Something for everyone!
I do anticipate the seller’s market to continue all over central Indiana but Hamilton County especially! It’s going to take quite a lot of inventory coming on the market to catch up with the demand.
Hancock County – Dec 2021
The story the numbers tell in Hancock County is pretty familiar, at this point! Home price appreciation due to lack of inventory available is like the Groundhog Day movie – happening again and again!
- Median Sales Price is $285,000, up 3.6% over November’s $275,000.
- Closed Sales are up 19.9% to 169, over the 141 in November.
- New listings are lower – 106 – than the 124 in the previous month.
- Days on Market fell from 21 in November to 19 in December.
- Months of Inventory (Absorption Rate) fell to 0.7 from 0.9 in November.
The story sounds familiar! Hancock County is firmly trenched in a Seller’s Market through the end of 2021. There are more buyers interested than there are homes to go around, so we don’t see this ending any time soon.
Hancock County is continuing to grow as an option for people who originally wanted Hamilton County. It’s close by, has some great school districts and cities/towns. Is that an option for you?
Overall
Again, Central Indiana is still in a Seller’s Market, keeping would-be buyers in a tailspin as they get their pre-approvals and hunt for their next home.
With Metro Indianapolis being named the 4th best housing market positioned for growth in 2022 by Realtor.com, it’s likely to continue for a while, yet.
Will it change? Of course – such is the cycle of supply and demand.
When? No one knows for sure. More inventory is a huge need but with interest rates poised to start rising soon, you never know what will happen to the demand.
Stay tuned!
