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MIBOR REPORT
More Inventory is the Solution
The primary story, both nationally and in central Indiana, is the continued presence of low inventory. The cure, of course, is more inventory. Sellers of existing homes are not yet hitting the market in droves. However, new construction locally is showing encouraging signs with strong new permit numbers. The heart of the selling season has yet to begin, and new sellers would be a welcome element to increase in activity in the coming months.
New listings in central Indiana increased 10.5 percent in February compared to a year ago. Pending sales were up 14.0 percent. Inventory levels fell 6.0 percent to 10,256 units.
Prices continued to gain traction. The median sales price increased 2.7 percent to $135,000 in February. The average sales price rose 2.7 percent to $170,000. Sellers are well positioned as months supply of inventory was down 13.1 percent.
National housing starts were up by 10.8 percent at the end of the 2015 when compared to 2014 and the unemployment rate is holding low and steadyatornear4.9percent. Meanwhile,mortgageratescontinueto astound below 4.0 percent and we have witnessed and unprecedented 70 consecutive months of private-sector job growth.