Northwest Indiana home sales for September 2007
Lake County
Homes sold: 391
Median selling price: $129,000
Porter County
Homes sold: 142
Median selling price: $157,000
Northwest Indiana
Homes sold: 533
Median selling price: $139,900
Northwest Indiana home sales slumped in September, mirroring the nation.
A total 533 new and existing homes were sold in Lake and Porter counties, a 22 percent drop from September 2006, according to information from the Greater Northwest Indiana Association of Realtors.
Nationwide, sales of existing homes fell by 8 percent, a record amount for a housing industry in its worst slump in 16 years.
Sales locally had stayed relatively strong compared to other parts of the nation, up until recently.
"It's definitely caught up to us," said Peter Novak, chief executive officer of the Greater Northwest Indiana Association of Realtors.
The 8-percent drop in nationwide sales, the largest since 1999, came amid turmoil in the mortgage markets and rising mortgage foreclosures.
Weak sales helped drive down the nationwide median selling price, but Northwest Indiana was able to hold its own.
The nationwide median price fell by 4.2 percent from last September to $211,700, according to the National Association of Realtors.
The median selling price climbed by 5.6 percent in Northwest Indiana, to $139,900.
"Our median selling prices have been maintained," Novak said.
The sales slowdown contributed to an increase in the inventory of unsold homes, which rose to 4.4 million nationwide. The pace of sales means homes could sit on the market for about 10.5 months nationally.
"I would imagine it's not that much different locally," Novak said.
Housing industry analysts predicted price declines would worsen nationwide until inventories are reduced.
"It really is a buyer's market locally," Novak said.
The one-time steady flow of Illinois residents buying up Northwest Indiana homes has slowed, Novak said.
"From what I've heard, they're being a lot more picky," he added. "It's no longer the flood that it was. Buyers are saying they would come if they could find the right subdivision or the right home."
Many potential Illinois buyers of Northwest Indiana homes also are likely to be waiting for their own homes to sell, Novak said.
"If they're buyers, they're usually sellers," he said.
-- The Associated Press contributed to this report.
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