The housing market showed some sparks of life in April, as both the local and national Realtors associations reported a modest uptick in sales as buyers took advantage of low prices.
The Greater Northwest Indiana Association of Realtors reports 508 homes were sold in its five-county territory in April, which represents a 3.5 percent increase from March.
"In the last couple of months we've seen a gradual and slow uptick in the market," said Pete Novak, Greater Northwest Indiana Association of Realtors executive director.
The National Association of Realtors reported sales of existing homes nationwide rose 2.9 percent in March to an annualized rate of 4.68 million.
Nationally, buyers were taking advantage of prices 15.4 percent below year-ago levels. Locally, the median selling price of homes is 14.8 percent below what it was a year ago.
Although sales were stronger in April than in March in Northwest Indiana, the 508 homes sold in April represented a 25.7 percent drop in sales from April of 2008, according to sales figures from the Greater Northwest Indiana Association of Realtors.
National Association of Realtors Chief Economist Lawrence Yun said most of the sales activity nationally is taking place in lower price ranges with activity beginning to pick up in mid-price ranges. The sale of high-end homes remains sluggish, Yun said.
Also driving the drop in median sales prices is the high number of foreclosed homes on the market, which often can be bought at a discount, according to Novak. Getting those homes sold and off the market will help drive prices up, Novak said.
Local Realtors say improvement in the market has been apparent for at least the past couple of months, with some desirable homes once again drawing multiple offers.
"With the low rates, people are starting to believe in home buying again," said Minakshi Ghuman, a Realtor with Century 21 Estates in Valparaiso.
According to Freddie Mac, the average rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.81 percent in April from 5 percent in March. The rate was 5.92 percent in April 2008.
