Foreclosures in Indianapolis Slowed, but Prices Remained Low

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Foreclosures in Indianapolis slowed in 2009, allowing home prices to appreciate in January 2010. Home prices, however, were still affordable despite the increase, based on figures from the Indiana Association of Realtors.

Foreclosure postings in the Indianapolis metro area dropped by 9.39 percent in 2009 to 18,408 filings, allowing the home sales price median in Indianapolis and other parts of Marion County to rise by 16.7 percent to $70,000 in January 2010 from $60,000 in January 2009.

The median house price, however, was still affordable to a lot of Indianapolis residents. According to the housing opportunity index released recently by the National Association of Home Builders and its partner Wells Fargo, 96 percent of median-income households in the city can afford to buy a median-priced home in Indianapolis.

Total home sales in Marion County dropped, however, in January 2010 to 484 units from 597 units in January 2009, according to the IAR.

Indiana foreclosures also slowed in 2009 and in January 2010, allowing home prices to increase. The median price statewide increased by 12.4 percent in January 2010 from the January 2009 median price, the fourth straight month that the home sales price median increased year-over-year.

Similar to the pace of foreclosures in Indianapolis last year, statewide foreclosure activity slowed by 9.87 percent in 2009 compared to 2008 and slowed by 2.51 percent in January 2010 compared to December 2009. Last January, more than 1,700 houses were listed for public foreclosure home auctions and more than 1,200 were already in bank foreclosure listings.

Another 1,599 units were given lis pendens notices, putting the number of foreclosed homes and distressed mortgages in Indiana in the first month of the year to a total of 4,622 units.

According to the IAR, the home sales price median increased in January 2010, but total house sales dropped by 1.5 percent compared to total sales in January 2009. The study included sales activities in 88 of the 92 counties in Indiana, representing 98 percent of the statewide housing market.

Karl Berron, CEO of the IAR, said the price increase in the first month of the year is a positive sign despite the decline in home sales because the sales trend has been positive in the last quarter of 2009.

Despite foreclosures in Indianapolis, the city has been able to remain one of the best cities to buy a home and raise a family in the U.S. With its great schools, diverse population and motor sports industry, the city continues to attract investments and home buyers.

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