Home Values, Real Estate, Week in Review

Portage Indiana Real Estate Market Annual Summary: 2010

January 5, 2011 by · 2 Comments 

People across Porter County Indiana are asking when the next upward cycle is coming and have we seen the “bottom” of the current market phase. This graph shows how median home prices in Portage Indiana rallied during the mid-summer of 2010 but ended the year at nearly the same median home price.

Portage Indiana Real Estate Market Annual Summary: 2010 by Steve Cardwell

The steep drop that occurred in 2009 was such a deep hole to climb from, most of the gains of this year were spent recovering from last-year’s earlier losses. Since prices in neighboring Chesterton Indiana and the Valparaiso Indiana’s outer perimeter of 46385 are still declining, we might consider flat performance as a positive sign of local market strength, relatively speaking.

Portage Indiana Real Estate Market Annual Summary – Market Profile for 2010:

  • Homes Sold:  257
  • Homes Active For Sale:  236
  • Median List Price:  $155,450

Quartile Median Prices of Active Listings: (from data ending the week of 12/27/2010)

  • Top/First – $289,900
  • Upper/Second – $179,894
  • Lower/Third – $137,900
  • Bottom/Fourth   – $95,000

Quartile Median Prices of Sold Listings: (all 2010)

  • Top/First – $182,000
  • Upper/Second – $140,000
  • Lower/Third – $120,250
  • Bottom/Fourth – $76,950

The spread between these two sets of numbers suggest that there is still a considerable amount of optimism between what sellers expect to recoup versus actual closed deals. Even though inventory of unsold homes is falling, the recent Days on Market has been increasing. This trend continues to favor buyers. For example, Ogden Dunes, with waterfront and luxury homes is particularly soft with 31 Active listings but only 6 sales in the past year yielding a market absorption of only 16% over the year.

New construction –  The MLS reports only 11 homes in the process of construction:

  • 3 in Sterling Creek, a subdivision which has taken more than 3 years to get started;
  • 1 each in The Trails, and Iron Horse Cove, both existing developments which are nearly built out;
  • 6 in Hidden Waters, Portage’s Accent Home’s newest projects, off of Airport Road.

The soft prices represent some super values for bargain-hunting buyers in each of the quartile price groups.  The big take-away from these numbers is how the market dropped about 7.5% last year, and despite a late summer rally, prices are still close to the bottom right now.

For people who can get pre-qualified, this is a smart time to make your move. We will have several interesting alternatives to explore as we find your dream home. If you’re ready to purchase of a home in one of our attractively-valued Portage Indiana neighborhoods, call or text me at at (312) 802-2977.

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Steve Cardwell

Steve Cardwell is an Indiana Realtor working with residential buyers and sellers throughout Northwest Indiana. He likes to stay current on the housing market by analyzing real estate trends with a focus on the towns of Highland and Munster Indiana. His broker affiliation is Red Key Realty Leaders in St John, Indiana. Learn more about Steve and visit www.SteveCardwell.com.

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Comments

2 Responses to “Portage Indiana Real Estate Market Annual Summary: 2010”
  1. Are my eyes deceiving me? There appears to be a big difference between the median list price of homes for sale and the median sales price for homes sold in Portage Indiana. Could you briefly explain why there is such a disconnect between the median list price and median sales price in Portage Indiana real estate market?

  2. It’s probably equal parts seller psychology and market forces. Notice the largest disparity is in the tier 1, the most expensive group, not so large in the lower 3 quartriles. Homes in the luxury group are more likely to be overpriced (percentage-wise) and consequently have farthest to fall (dollar-wise). And their owners may have better means to hold out longer and perhaps be more reluctant to let go. There may even be some peer pressure to hold out from acquaintances & neighbors. But once the “dam breaks” as a few seller drop their prices to a lower price floor, the new group of comparables begin forcing other sellers to drop their prices to new, and more realistic levels.

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