Improving real estate conditions

The Indianapolis Star ran a front page story this morning with the headline “An unwelcome surprise: May home sales slip 15%.” I was perplexed by this headline because the Carpenter management team has been discussing and analyzing market statistics as we always do.  Because of this, I knew that May 2011 was a much stronger month than the previous May.  So what’s the old saying…the devil’s in the details.  Well, the first several paragraphs of the article are apparently comparing CLOSED sales.  In that case, it is not surprising at all that May 2010, the month following the end of the tax incentive, is higher than May 2011.  It is not until you turn back to page six and nearly the last paragraph of the article that you get a better picture of how the month performed.  “The number of pending sales in May was up a robust 37.7 percent in the metro area and 32.6 percent statewide compared with the same month last year.”  Down 15% vs. up 37.7%.  Wow, what a different picture…sure closings are down because most transactions take 30-45 days from contract to close and April 2010 just before the tax expiration was one of the highest contract months in years.  However, pendings, buyers and sellers coming to together and entering into contracts, are up 37.7%.  Karl Berron, chief executive of the state Realtors group, is quoted thereafter, “Realtors from around the state are reporting high interest and activity.  We are past the worst and looking to grow.”

The bottom line – headlines are fine, details are better.  Real estate transactions are being done and a recovery is in process.  It still remains the best time in decades to purchase a home.  Don’t take my word for it…search nearly all central Indiana listings on our website and see for yourself.

Posted by:  Ryan Carrell

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