At the height of summer, we're finally beginning to move beyond comparisons to the 2010 incentive market.  The three-month and one-month views provide an encouraging picture.  Price continues its steady upward path, providing some stability to the central Indiana housing market. Median Sales Price remained essentially even for the three months ending in July and ticked up slightly by 1.6 percent for the month of July.

Average Sales Price increased 2.2 percent for the three months ending in July and 2.7 percent for July only.  New Listings in the Indianapolis region decreased 19.1 percent to 3,320 for July only and 9.6 percent for the three months ending in July.  The most encouraging signs were in Pending Sales and Closed Sales.

Pending Sales were up 8.0 percent in July and 20.9 percent for the three-month period ending in July.  Closed Sales dipped slightly by 1.1 percent for the same three-month period but posted an impressive 27.9 percent for the month of July.  Recent economic news, budget deal squabbles and the credit downgrade have many questioning the health of the market and specifically the role of mortgage rates. Rightfully so.  While the future is not definite, it appears these events – particularly the downgrade – have done far more damage to the psychology of home buyers and sellers than to mortgage rates themselves. Near-record lows remain, providing an incentive all their own.