Projects Abound Amid Indianapolis Foreclosed Homes for Sale

by on cities

Housing projects abound despite the continued affordability of Indianapolis foreclosed homes for sale.

Typically, new home construction projects hibernate as foreclosed and nondistressed houses continue to be low-priced, but in Indianapolis, developers have been gaining confidence about the strength of the local housing market.

In a number of housing market studies, Indianapolis has been cited as among the top cities with strong prospects for recovery and continued home affordability.

Recently, members of the Builders Association of Greater Indianapolis showed their confidence in the local market by setting up a meeting with lenders so they can start their new home construction projects. At least 40 custom home builders will join the session, which will also be attended by economist Matthew Will of the University of Indianapolis and by representatives of First Internet Bank, First Place Bank, Union Savings Bank and Huntington Bank.

Joe Gradison of Gradison Building Corporation said that he hopes his firm can equal or surpass their previous pace of four-to-eight high-end custom homes per year. He added that he did remodeling projects over the past year as low-priced Indianapolis foreclosed homes for sale dominated the market.

Foreclosures in Indiana slowed in February by 5.65 percent from January and by a little more than one percent from February 2009, but Indiana’s ranking in foreclosure rate rose from 18th in January to 17th in February. This meant that some states improved their foreclosure situation in February more than Indiana did.

Of the 4,361 homes that were sent with notices of foreclosure sales, repossession and default in the state, a total of 1,514 units were already bank-owned foreclosures for sale. More than 1,500 units were listed for foreclosure sale and more than 1,300 units received lis pendens notices.

In addition to the rehabilitation of foreclosure properties using federal stimulus funds in 2009, the Indianapolis Housing Agency is also rehabilitating 538 apartment units in four of its housing complexes using the $23.5 million tax credit raised by City Real Advisors Inc. The complexes include Lugar Tower and Caravelle Commons, whose 65 units will be replaced with 155 new units.

City officials said that the tax credit deal closed with institutional investors last February 22 was the largest in state history. If additional tax credit placements are approved by the state, these tax credits could raise another $60 million, a huge amount that can fund renovations and replacements in other housing projects, including the rehabilitation of a number of Indianapolis foreclosed homes for sale.

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