2015 Delaware County Real Estate Forecast and 2014 Performance Summary
Below are some of the highlights of 2014 in Delaware County.
Unit Sales were down 11% — each month was worse than 2013.
What drives the market?
- Consumer Spending — Up
- GDP — Up
- Corp Profits — Up
- Consumption — Up
- All this feeds population grown, but Muncie is stuck
- There’s net migration to Indiana, but not in East Central Indiana
5th Straight year up in Property Appreciation — nice! 2010-2015 all up.
- 1.2% in 2014. All time high was 2005
83% of homes sold were less than $150,000
Average price was $95,617
Foreclosure sales were 19% of all transactions — which is down nicely. Most happen in the 1st Qtr
Financing Type Popularity
- 38% Cash — that was a surprise
- 34% Conventional
- 17% FHA
- everything else is very small
Property Taxes up 4 years in a row as a ratio of sales price. Assessed values are higher than sale prices. We’re up 20% higher than normal. Is there a flaw in the system?
Active listings — down 7 years in a row. Finally, in 2014 we went up slightly from 450 to 549 as of this writing. Very short inventory in Yorktown and Cowan.
Absorption Rate — highlights — $75-100k are high at 7.1 months. Over $300,000 it’s 18 months!
Days on Market numbers changed quite a bit because the MLS system changed the way they measure it. It’s now “Days to Pending.”
Building Permits — 14 in the last year (outside of the city). Down from 16 last year! Horrible. That’s 7 years of very little building.
Age of the Average Home Sold is 1959. Wow! That’s old.
- Lack of new construction is a challenge. Fearful buyers will look to other communities.
- Low Inventory
- Improving local economy, but is there a place to spend the profits? Will residents spend here or Indy?
- Increasing home prices. Remember, sellers lose a bit when Buying next home.
- Rising Interest Rates — probable.
- More change in the leadership of Muncie Schools — lack of direction? For people looking to move here that could be a problem… an uncertainly.
- Weather? Okay so far… but what does FEB/MAR bring? Last year it really slowed business.
- Unit sales Flat
- Avg Sale Price up by 3-5% — mostly because of lack of supply
- Inventory below 7 months.
- Property taxes still rising
- New construction flat
- Foreclosures at 13-18% range.
To me… I’m okay with this. I had a great year in 2014 and sold 80 homes. Deals are getting done!