Housing comeback: Home sales surge again in October

The sudden spurt in sales of existing homes in the metro area in September was no fluke.

Sales rose in October as well, marking the second month in a row of increased sales after eight straight months of decreases in 2014.

The October increase of 9.4 percent comes on the heels of September’s 13 percent jump.

If sales over the final two months remain strong, 2014 could mount a last-quarter comeback and surpass last year’s sales totals.

“October followed September’s breakthrough as buyers and sellers jumped back into the market with great confidence,” said Janet Jernigan, president of Metropolitan Indianapolis Board of Realtors, which released October numbers Tuesday. “The growing activity in pended sales and new listings over the last 60 days shows even more consumer faith in the market. While 2014 has been a good year for buyers and sellers, the market is really showing its strength this fall.”

Two other key housing indicators also were positive for the 13-county metro area measured by MIBOR: Median prices of homes that sold last month rose by 5.6 percent, to $139,900, while new listings swelled by 4.9 percent, to 3,314, over the year-ago numbers.

Statewide, the story was much the same. Sales grew by 9 percent, to 6,928, and the median sales price by 4.1 percent, to $126,000. Statewide sales so far this year are down 2.4 percent over the first 10 months of 2013, to 63,680.

Housing experts credit the surge in home sales this fall in part to stronger job numbers that mean more people are working and drawing paychecks. Indiana’s unemployment rate stood at 5.7 percent the last two months and has been under the national average all year.

All eight counties in the core metro area saw sales gains in October, led by a 38 percent jump in Shelby and 36 percent rise in Boone and Morgan. Sales also rose 21 percent in Hendricks, 10 percent in Johnson, 6.7 percent in Marion, 5 percent in Hamilton and 1 percent in Hancock.

“The year started slowly, but a strong fall brings balance to 2014 home sales statewide,” said Kevin Eastridge, president of Indiana Association of Realtors. “Prices continue to gain traction and housing seems to be settling into a more sustainable growth pattern. What local markets need most is further job creation, meaningful wage growth and credit availability.”

Call Star reporter Jeff Swiatek at (317)444-6483. Follow him on Twitter: @JeffSwiatek.