October 2021 Market Watch
October 2021 still shows a strong Seller’s Market. There were a few changes in the individual county numbers included in the Metropolitan Indianapolis Board of Realtors market report, though all are still strong.
According to Shelley Specchio, CEO of MIBOR, home prices are remain at near all-time highs and is 14.9% higher than last year at this time.
Dr Elliot Eisenberg, international economist, says that nationally, there is stron consumer demand out there for almost everything. Demand for services was pleasantly up in October 2021, as well.
He said, “The demand for goods was not able to be satisfied so well because you simply cannot buy what is not available.” This is not a new twist in the real estate industry who has been fighting record low inventory for sale for quite a while now.
Eisenberg is anticipating a very good Q4 for 2021 with respect to the GDP and sales.
I’ve heard lots of people asking when the housing market was going to crash…
Looking at the housing market report, it won’t be anytime soon… demand is there and inventory is still low! Supply and demand will keep it rocking!!
October 2021 – Madison, Hamilton and Hancock Counties
Madison County – October 2021
Madison County saw some movement in some of the stats since September’s report.
- Median Sales Price: $158,000, down $500 from September
- 191 Closed Sales in October, vs 200 in September
- New Listings are up 11.3% to help with tight inventory
- Days on Market dropped 20% to 16 Days, vs 20 Days in September
- 1.0 Absorption Rate
Median Sales Price had only a $500 decrease since the September report, so nothing huge there. Closed sales fell by 4.5%, or 9 transactions less.
New Listings came on the market in October at 236 for the month which is 11.3% more than the 212 in September.
Days on Market dropped by 4 Days or 20% – That’s HUGE i a one month time span! Means homes are gong under contract to purchase relatively fast over last month in Madison County!
At the end of October, we had one (1) full month worth of inventory if no new homes came on the market. Meaning, we would sell through the existing inventory in one month. Definitely still a Seller’s Market though more homes makes it a bit easier on buyers!
Hancock County – October
For October 2021, Hancock county put up some strong numbers…
- 10% increase in Median Sales Price from $260,000 in September to $286,000 in October. WOW!
- Closed Sales were down only 2 sales from September
- Days on Market increased by 80% from 10 days to 18 days!!
- Active Inventory increased from 106 in September to 145 in October, 36.8%.
The only two stats that saw a decrease were number of closed sales (only 2 less) and % of asking price received when sold went down .7% from 101.1% to 100.4%. Nothing really, to speak of.
The biggest WOW was the increase in the Median Sales Price! That was a HUGE move in 31 days.
Hancock County is busting it during this Seller’s Market! I will be interested to see where the numbers land for November in a few weeks…
Hamilton County – October
Hamilton County continues to be one of the most sought after places to live and the number certainly back that up!
- 2.9% increase in Median Sales Price – from $369,275 in September to $379,948 in October
- New Listings down 5.3% from 602 to 570
- Active Inventory went from 264 in September to 233 in October
All the stats back up the fact that Hamilton County has a ton of buyers looking for homes – and not enough inventory to satisfy the demand!
Notice the $10,000 increase in the Median Sales Price in one month. That is very telling! Not surprising to see all the new neighborhoods popping up in Hamilton County but building takes time so it’s just not enough on its own. Existing home sales are kicking it too, just need more!
Hamilton County has one of the lowest Absorption Rates as well. For October 2021, it posted at .04 months worth of inventory if no homes came on the market. That’s like a couple of weeks and they would sell out! Mind-boggling!
Opinion
Buyers and Sellers alike can benefit from the current market environment. Never truly knowing what might come next, my daddy always echoed the old saying “A bird in the hand…”
Buyers
With interest rates hovering near 3%, buyers are still looking to get into their dream home before rates begin rising, post Covid. Their money goes farther while rates are low and sounds like the Fed is going to start hiking them again maybe Q1 of 2022…
Sellers
Sellers should take a look at their equity and decide if now’s the time to sell for them. Remember, buy low, sell high is how you realize that cash equity. Or, at least refinance, maybe pull some cash out to pay off debt, remodel or take a terrific vacation – You’ve earned it!!!
