Single-family home sales in Northwest Indiana continued to grow in October compared to one year ago, although at a slower pace of 6.1 percent, according to the Greater Northwest Indiana Association of Realtors.
This is the 28th straight month of sales increases in the region, but represents the first single-digit increase in a number of months, said Peter Novak Jr., GNIAR CEO.
The median selling price of a home also increased by 6.4 percent in October, Novak said. That may factor into why the sale of existing homes wasn’t in the double digits last month, he said.
“The starting prices are on the rise. As the home prices are getting more expensive, affordability decreases and there’s less transition,” he said.
Interest rates, which have been at historic lows, are now on the rise.
“There are some (interest rates) in the mid-4 percent,” Novak said. “As the interest rates rise, that has a real impact on sales.”
Another factor in the single-digit increase may have been the 16-day federal government shutdown, he said.
“All the federally-sponsored agencies were still operating, but the processing was delayed,” Novak said.
Nationally, the sale of existing single-family homes fell for the second straight month, according to a report released Wednesday by the National Association of Realtors. That re-sale of homes fell 3.2 percent from September.
That report indicates that sales of single-family homes dropped 4.1 percent and sales of condominiums rose 3.3 percent.
The NAR report coincides with the GNIAR figures, with the median sales price of an existing home up 12.8 percent from October 2012. This represents the 11th straight month of double-digit price increases
That Northwest Indiana is still on the streak of increased home sales makes 2013 “a great year,” Novak said.
“The most shocking thing (about October’s GNIAR report) was how well we are doing,” he said.
The Greater Northwest Indiana Association of Realtors represents Realtors in Lake, Porter, Newton, Jasper and LaPorte counties.