Indianapolis foreclosure lists have been pushing up home affordability in the area, based on a report from the National Association of Homebuilders and on the Housing Opportunity Index of Wells Fargo.
With the Indianapolis median income of $68,100, the median home sales price of $107,000 gave the city of Indianapolis a home affordability score of 94.5 percent, making the city the most affordable city in the entire U.S. based on 2009 income and home price data.
Indianapolis has suffered from the difficulties of the auto industry, but previous and current efforts of the city to diversify into other industries such as insurance, banking, drug industries and government services, have helped the city survive job losses from downsized manufacturing plants.
Just like in other cities, the entry of relatively large numbers of foreclosure properties in Indianapolis has also pushed down the prices of homes and has improved home affordability levels. In the first two quarters of the year, over 11,000 residential properties received foreclosure postings, many of which were already repossessed by banks and added to their Indianapolis foreclosure lists.
Despite the improved level of home affordability in the city, sales of previously owned single-family houses fell in the Indianapolis metro area in September compared to sales in September last year, based on a report from the Indiana Association of Realtors.
Total home sales dropped by nearly 8 percent to 1,827 units, with sales falling by more than 8 percent in Marion County and sales decreasing by more than 7 percent in Hamilton. Marion had 893 houses sold and Hamilton had 366 homes sold.
The only counties with increased home sales were Johnson, with sales increasing by 16 percent, and Hancock, with sales going up by nearly 6 percent. The biggest decrease in sales occurred in Shelby County, with only 25 homes sold, marking a drop of 50 percent.
Across Indiana, home sales also decreased in September compared to last year, dropping by 7.7 percent. Karl Berron, CEO of the Indiana realtor association, said home sales have declined, but home values are still stable.
While home sales declined compared to last year, sales increased by nearly 2 percent compared to the previous month. The improved home affordability and the federal tax credit improved sales, according to F.C. Tucker which also tracks home sales in Indianapolis.
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