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Home sales in the state are likely to get boost Share of price offset by tax credit is bigger in Indiana than elsewhere By Jeff Swiatek, The Indianapolis Star Posted: November 10, 2009
A federal tax credit for first-time homebuyers extended by Congress last week and approved by President Barack Obama could increase hoome sales in Indiana.
The tax credit, $8,000 for a first-time homeowner, was set to expire Nov. 30. Obama's signature extends it to April 30 and provides a new $6,500 credit to people who have owned and lived in a home for at least five consecutive years of the past eight years and now want to buy another home.
David Caveness, senior vice president of Carpenter Realtors in Indianapolis, said the credit is essentially worth more in Indianapolis because its homes are priced among the lowest of the 60 largest metro areas in the country.
"So, by theory, it should impact us the greatest -- the credit is a bigger part of the purchase price," he said.
Indiana is among a handful of states with an average listing price of less than $200,000. The $8,000 credit covers a larger chunk than it would in pricier markets.
"That would reimburse a good portion of your down payment," said John Holmgren, spokesman for the California Association of Mortgage Brokers.
For F.C. Tucker Co, the area's largest realty company, Indianapolis-area sales of 805 homes last month were its second-best October in the past 12 years. There's "no question" the tax credit is the reason for the boost, said H. James Litten, president of the residential division.
The expanded credit is expected to help even more.
"It will be a great thing for the housing market, and what's good for housing is good for the overall economy," Litten said.
The credit has been especially helpful for moving homes that cost less than $200,000, said Mark Lopez, an agent for Tucker's Zionsville office.
John Pacilio, a ReMax associate broker in Carmel, said he expected the credit for current homeowners will appeal to buyers of higher-priced homes.
"I'm excited about it. I just got off the phone with someone interested in buying a half-million(-dollar) house, and at the end of the conversation they were excited about the $6,500 they can get," Pacilio said.
Most of the recent home sales handled by Landrigan & Co. Realtors involved transactions eligible for the tax credit.
"Whether you agree with the stimulus or not, it has had an effect," said GB Landrigan, president of Landrigan. "In the last few months, I'd say three-quarters of our homebuyers have said they would have waited a year or two before buying a home" if the credit weren't available.
Few local companies track the number of first-time buyers in the market, but Carpenter's Caveness said estimates show, thanks to the tax credit, they made up a robust 30 percent to 35 percent of the Indianapolis home-buying market this year.
"I couldn't give you exact data, but the credit has kept us alive on price points under $200,000 and helped us move considerably more homes than we would have. My business would have been pretty slow without it," said Jason DeArmon, an associate broker with Carpenter.
For some buyers, the new $6,500 credit could be used to offset losses from selling their existing homes that may have dropped in value in the past two years, said Dan Breault, regional director for ReMax of Indiana.
"The $6,500, maybe that softens it a little. It might help that buyer feel better about it (buying a different home)," he said.
A federal tax credit for first-time homebuyers extended by Congress last week and approved by President Barack Obama could increase hoome sales in Indiana.
The tax credit, $8,000 for a first-time homeowner, was set to expire Nov. 30. Obama's signature extends it to April 30 and provides a new $6,500 credit to people who have owned and lived in a home for at least five consecutive years of the past eight years and now want to buy another home.
David Caveness, senior vice president of Carpenter Realtors in Indianapolis, said the credit is essentially worth more in Indianapolis because its homes are priced among the lowest of the 60 largest metro areas in the country.
"So, by theory, it should impact us the greatest -- the credit is a bigger part of the purchase price," he said.
Indiana is among a handful of states with an average listing price of less than $200,000. The $8,000 credit covers a larger chunk than it would in pricier markets.
"That would reimburse a good portion of your down payment," said John Holmgren, spokesman for the California Association of Mortgage Brokers.
For F.C. Tucker Co, the area's largest realty company, Indianapolis-area sales of 805 homes last month were its second-best October in the past 12 years. There's "no question" the tax credit is the reason for the boost, said H. James Litten, president of the residential division.
The expanded credit is expected to help even more.
"It will be a great thing for the housing market, and what's good for housing is good for the overall economy," Litten said.
The credit has been especially helpful for moving homes that cost less than $200,000, said Mark Lopez, an agent for Tucker's Zionsville office.
John Pacilio, a ReMax associate broker in Carmel, said he expected the credit for current homeowners will appeal to buyers of higher-priced homes.
"I'm excited about it. I just got off the phone with someone interested in buying a half-million(-dollar) house, and at the end of the conversation they were excited about the $6,500 they can get," Pacilio said.
Most of the recent home sales handled by Landrigan & Co. Realtors involved transactions eligible for the tax credit.
"Whether you agree with the stimulus or not, it has had an effect," said GB Landrigan, president of Landrigan. "In the last few months, I'd say three-quarters of our homebuyers have said they would have waited a year or two before buying a home" if the credit weren't available.
Few local companies track the number of first-time buyers in the market, but Carpenter's Caveness said estimates show, thanks to the tax credit, they made up a robust 30 percent to 35 percent of the Indianapolis home-buying market this year.
"I couldn't give you exact data, but the credit has kept us alive on price points under $200,000 and helped us move considerably more homes than we would have. My business would have been pretty slow without it," said Jason DeArmon, an associate broker with Carpenter.
For some buyers, the new $6,500 credit could be used to offset losses from selling their existing homes that may have dropped in value in the past two years, said Dan Breault, regional director for ReMax of Indiana.
"The $6,500, maybe that softens it a little. It might help that buyer feel better about it (buying a different home)," he said.
Hiring boost is good omen for Boone County economy Boone County appears poised for rebound By Robert Annis, The Indianapolis Star online Posted: October 8, 2009
Two major Boone County employers will begin hiring soon, officials say, with more good news possibly on the horizon.
Several businesses are likely to add jobs within the next year, including 1,800 temporary jobs at Amazon.com's distribution center in Duke's Anson development. Dax Norton, Boone County Economic Development Corporation executive director, said the employees would be needed October through December this year for the holiday shopping season.
The distribution center has about 400 permanent employees and likely will ramp up to 1,200 permanent full-time employees by 2012. Amazon.com officials didn't return a phone call seeking comment.
Meanwhile, Medco will hire more than 500 pharmacists, technicians and other employees by late 2010 as the automated pharmacy goes into production mode next year, according to company spokeswoman Ann Smith. Norton said the average annual wage would be more than $85,000.
Norton said Boone County has weathered the recession better than many of its neighbors.
"Housing starts and sales have been steady (and) unemployment's dropping," Norton said. "Several businesses are discussing expanding their current sites. . . . We've nearly run out of existing building inventory, but we've got plenty of shovel-ready land ready to be developed."
Norton refused to name the businesses, citing the confidential nature of the talks.
The state Department of Workforce Development reports the percentage of unemployed residents dropped from 7.8 percent in July to 7 percent in August. About 1,946 county residents needed a job in August, compared with 2,178 in July.
According to a report by real estate company Landrigan & Company, the number of homes sold and the average sale price were down only slightly from a year ago. Sixty-two homes sold in August 2009 for an average of $231,000 compared with 69 homes sold in August 2008 at an average cost of $233,000.
Norton suggested the county is primed for a quick recovery if the recession ends in the second quarter of 2010 as expected, with the expansion of Dow AgroSciences just south of the county line potentially paying huge dividends for Boone County. He hopes more biotech companies and suppliers would be attracted to the area, with Anson being primed for rapid expansion.
"The capital markets really haven't opened up yet, but there's a lot of interest in building there when they do," Norton said. "We've submitted a lot of leads to Duke. The south end of the project's developing nicely with housing and retail coming in now, so there's a lot of good signs."
Two major Boone County employers will begin hiring soon, officials say, with more good news possibly on the horizon.
Several businesses are likely to add jobs within the next year, including 1,800 temporary jobs at Amazon.com's distribution center in Duke's Anson development. Dax Norton, Boone County Economic Development Corporation executive director, said the employees would be needed October through December this year for the holiday shopping season.
The distribution center has about 400 permanent employees and likely will ramp up to 1,200 permanent full-time employees by 2012. Amazon.com officials didn't return a phone call seeking comment.
Meanwhile, Medco will hire more than 500 pharmacists, technicians and other employees by late 2010 as the automated pharmacy goes into production mode next year, according to company spokeswoman Ann Smith. Norton said the average annual wage would be more than $85,000.
Norton said Boone County has weathered the recession better than many of its neighbors.
"Housing starts and sales have been steady (and) unemployment's dropping," Norton said. "Several businesses are discussing expanding their current sites. . . . We've nearly run out of existing building inventory, but we've got plenty of shovel-ready land ready to be developed."
Norton refused to name the businesses, citing the confidential nature of the talks.
The state Department of Workforce Development reports the percentage of unemployed residents dropped from 7.8 percent in July to 7 percent in August. About 1,946 county residents needed a job in August, compared with 2,178 in July.
According to a report by real estate company Landrigan & Company, the number of homes sold and the average sale price were down only slightly from a year ago. Sixty-two homes sold in August 2009 for an average of $231,000 compared with 69 homes sold in August 2008 at an average cost of $233,000.
Norton suggested the county is primed for a quick recovery if the recession ends in the second quarter of 2010 as expected, with the expansion of Dow AgroSciences just south of the county line potentially paying huge dividends for Boone County. He hopes more biotech companies and suppliers would be attracted to the area, with Anson being primed for rapid expansion.
"The capital markets really haven't opened up yet, but there's a lot of interest in building there when they do," Norton said. "We've submitted a lot of leads to Duke. The south end of the project's developing nicely with housing and retail coming in now, so there's a lot of good signs."
June 2009 Issue: Indianapolis Woman Magazine "Patience Pays Off" PDF Article
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Housing market shows improvement Tom Harton - tharton@ibj.com Indianapolis Business Journal staff June 2009
Housing inventories fell last month in almost all Indianapolis-area submarkets, according to a monthly report on local residential real estate, fueling hope that the market will continue improving as supply falls to healthy levels. And at least one prominent developer of new houses sees signs of a turnaround.
The number of homes for sale in Marion and 12 surrounding central Indiana counties in May was 17,167, a drop of a little more than 16 percent from May of last year, said the report issued by Landrigan & Co. Realtors.
The number of homes for sale is equal to an 8.4-month supply, according to Landrigan, a local firm that uses numbers supplied by the Metropolitan Indianapolis Board of Realtors in calculating its report.
A six-month supply of homes is optimal, said firm owner G.B. Landrigan.
Among the most dramatic year-over-year improvements: The supply of downtown homes for sale fell from almost 28 months to just less than a 17-month supply.
The supply in Hamilton County's Clay Township was just a tick higher than a year ago, at 8.3 months, but sales activity has jumped lately, according to developer George Sweet. Sweet's Brenwick Development Co. in 2000 launched development of The Village of WestClay, a high-end neighborhood known for its classic architecture and mixture of uses, including office space and convenience retail.
Sweet reports selling 10 custom spec homes in the last eight weeks, the biggest number in several months. A condominium community and non-custom home section within WestClay also have seen a jump in sales.
The increased activity is in line with what agents at Keller Williams Realty Group are seeing, said Cindy Cherf, who leads the firm's Indianapolis Metro North office.
Cherf said the typically busy spring selling season usually starts in early February, right after Super Bowl Sunday. This year activity didn't pick up until March. Cherf said, but activity has accelerated recently. In a typical year, activity drops off by late spring, she said.
Both Cherf and Landrigan attribute some of the improvement to the $8,000 federal tax credit made available to first-time buyers as part of the federal government's effort to stimulate the economy. Landrigan said the tax credit is responsible for reducing the inventory of lower-priced homes. At higher price points, there's a shortage of houses for sale in some neighborhoods, Landrigan said. In affluent parts of Meridian-Kessler, for example, there's little to show in the $450,000 to $700,000 range, he said.
Housing inventories fell last month in almost all Indianapolis-area submarkets, according to a monthly report on local residential real estate, fueling hope that the market will continue improving as supply falls to healthy levels. And at least one prominent developer of new houses sees signs of a turnaround.
The number of homes for sale in Marion and 12 surrounding central Indiana counties in May was 17,167, a drop of a little more than 16 percent from May of last year, said the report issued by Landrigan & Co. Realtors.
The number of homes for sale is equal to an 8.4-month supply, according to Landrigan, a local firm that uses numbers supplied by the Metropolitan Indianapolis Board of Realtors in calculating its report.
A six-month supply of homes is optimal, said firm owner G.B. Landrigan.
Among the most dramatic year-over-year improvements: The supply of downtown homes for sale fell from almost 28 months to just less than a 17-month supply.
The supply in Hamilton County's Clay Township was just a tick higher than a year ago, at 8.3 months, but sales activity has jumped lately, according to developer George Sweet. Sweet's Brenwick Development Co. in 2000 launched development of The Village of WestClay, a high-end neighborhood known for its classic architecture and mixture of uses, including office space and convenience retail.
Sweet reports selling 10 custom spec homes in the last eight weeks, the biggest number in several months. A condominium community and non-custom home section within WestClay also have seen a jump in sales.
The increased activity is in line with what agents at Keller Williams Realty Group are seeing, said Cindy Cherf, who leads the firm's Indianapolis Metro North office.
Cherf said the typically busy spring selling season usually starts in early February, right after Super Bowl Sunday. This year activity didn't pick up until March. Cherf said, but activity has accelerated recently. In a typical year, activity drops off by late spring, she said.
Both Cherf and Landrigan attribute some of the improvement to the $8,000 federal tax credit made available to first-time buyers as part of the federal government's effort to stimulate the economy. Landrigan said the tax credit is responsible for reducing the inventory of lower-priced homes. At higher price points, there's a shortage of houses for sale in some neighborhoods, Landrigan said. In affluent parts of Meridian-Kessler, for example, there's little to show in the $450,000 to $700,000 range, he said.