Indianapolis Investment Property - Market Analysis

Many of you have been asking for this info and I wanted to back up what I have been telling you about the market.  I pulled properties that have sold within the past 3 months (since the mortgage crunch) that are in the areas that I am suggesting to concentrate on for purchasing.  Based upon MLS data, and in the specific areas (So Bro - Southern Broad Ripple and the Tarkington area), the data I have is this:

Southern Broad Ripple:
48 sold properties, 23 of those were non-REO properties and 25 of them were REO type sales.  That is an even split and something I have noted for quite a while.  The even better news is this, the average DOM (days on market) is at an average of 105 days.  Out of the 23 non-REO properties, 11 of them sold in less than 90 days and 9 of them sold in less than 60 days.  I also did a cross reference check of currently active properties and the numbers aligned almost perfectly in regard to the numbler of REO (50-50) and non-REO properties and the average DOM (110 days).  Bottom line, these properties are selling, even in the mortgage downturn.  Also, the lowest non-REO sale was $59,500 and the highest $143,000.  Obviously that is a wide range, but shows the low end to be in line with what I have put out.

Tarkington area (South of 42nd Street):
24 sold properties, 7 of those were non-REO properties and 17 of them were REO type sales.  This market has a historically low turnover due to the owners holding onto their properties.  Being close to Butler University really keeps the owners remain as owners, so the data is more skewed and harder to read.  Regardless, the news is just as refreshing.  The average DOM is at an average of 111 days.  The active properties, however, show an even better sign, as the average DOM is even less at 93 DOM.  The lowest non-REO listing was at $64,900 and the highest was $195,000.  This market is hot just like So Bro.

I hope that helps illustrate that the values are there and that these properties are still selling.  Imagine what the market will look like in 3 months when your first rehabbed properties hit the market.  I can’t stress enough…get in now!!
-B

Posted by Clayton October 2007

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