Bowdeya Tweh, Times of Northwest Indiana
bowdeya.tweh@nwi.com
Northwest Indiana home sales dipped slightly in July after shooting up nearly 30 percent between May and June, according to data from the Greater Northwest Indiana Association of Realtors.
July home sales in the region dropped 1.4 percent to 719, compared to 729 a month earlier. The tally is down 3.1 percent compared to July 2008. The median selling price for a home was $130,000 in July, which is 1.6 percent higher than June, but 5.4 percent lower than July of last year.
The association compiles sales data from Lake, Porter, LaPorte, Jasper and Newton counties.
Melody Sanchez, branch manager of McColly Real Estate's Highland office, said homebuyer incentives have led the improved sales and she hopes that slight market improvement can be sustained. Data in some months earlier in 2009 showed more than 20 percent decreases year-over-year sales.
Sanchez also said although there is increased competition for distressed properties, there is still a significant amount of inventory available for buyers.
In Freddie Mac's survey of lenders, the national average rate on a 30-year, fixed-rate mortgage was 5.12 percent in the week that ended Thursday, down from 5.29 percent a week earlier. The average rate in July was 5.22 percent, down from 5.42 percent in June. In July 2008, the average rate was 6.43 percent.
Sales of single-family detached homes in Lake County dropped 2.8 percent in July, with 649 homes sold as compared to 668 in July 2008. The median selling price was $129,900, which is 3.9 percent higher than in June, but still 3.8 percent lower than in July 2008.
Sales of single-family detached homes in Porter County fell 8.3 percent in July, with 143 homes sold as compared to 156 in July 2008. The median selling price was $166,500, which is 11.2 percent lower than in June, but still 0.4 percent better than in July 2008.
The National Association of Realtors said Friday sales of existing-homes -- including single-family, townhomes, condominiums and co-ops -- rose 7.2 percent to 5.24 million units in July compared to 4.89 million units in June. Sales in July are up 5 percent compared to the July 2008 pace of about 4.99 million units.
The monthly gain was the largest on record for total existing-home sales dating back to 1999 and the last time sales rose for four consecutive months was in June 2004, the association said.
Lawrence Yun, chief economist for the National Association of Realtors, said the positive signs from the national data is encouraging news.
"The housing market has decisively turned for the better," Yun said. "A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales."