The number of Indianapolis foreclosed homes for sale being purchased has been increasing in recent weeks because of the rising number of first-time home buyers taking advantage of low-priced foreclosed houses across the city.
According to data from an Indiana-based real estate research firm, 68 percent of all houses sold through August in the 9-county Indianapolis metro area were sold at prices below $150,000, marking an increase from 43 percent during the same period last year.
Real estate businessman Brian DeMarco said that the $8,000 federal tax credit, which is expiring at the end of November, definitely has been driving first time home buyers to make their home purchases. He added that houses priced below $150,000 account for a big percentage of homes for sale in the Indianapolis area.
During the month of August, the average house price was $146,999, which was 1.3-percent higher than the average price in August 2008. Around 8,000 houses available for sale in the Indianapolis metro area are priced below $150,000.
The average house price in August in Marion County was $109,597, an increase of 1.2 percent from the same month in 2008.
Meanwhile, total sales of Indianapolis foreclosed homes for sale comprised 22 percent of total home sales in the metro area in August. The percentage is still high, but it marked a drop from the peak level of 46 percent at the start of the year.
In January, according to DeMarco, almost half of all home sales were foreclosures. He added that he and other professionals in the real estate industry are still working with banks about their bank-repossessed properties.
During August, the average price of a foreclosure home in the Indianapolis metro area was $66,885. Compared to the average house price of nearly $150,000 in the metro area, the price of a foreclosure house is a steal. It is no wonder that the number of first-time home buyers soared in August. Low home prices, low mortgage rates and the federal tax credit were more than enough to entice them.
Based on Indianapolis real estate market data, the number of foreclosure properties being sold has been surpassing the number of homes entering the housing market. All in all, the number of active residential real estate listings in the city has dropped by 15.5 percent from August last year to a total of 16,234 units this year.
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