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LogoRealtor Sentiment Survey

Second Quarter 2016: Indiana Realtors Expect a Strong Seller’s Market this Summer

With mortgage rates still below 4 percent and the Indiana labor market showing steady improvement, it’s no surprise that housing demand appears to be strong in the early months of the spring selling season. Responding to the Indiana Association of REALTORS® Sentiment Survey for the second quarter, 64 percent of Realtors stated that buyer traffic was higher than average. This was by far the highest share of respondents indicating stronger than normal demand over the nine editions of this survey, and well above the marks recorded during the same period in previous years (i.e., 53 percent in 2015 and 44 percent in 2014).

While demand is climbing, the inventory of homes for sale continues to fall. Fifty-eight percent of survey respondents stated that seller traffic was lower than average—the highest share of Realtors indicating weaker than normal seller traffic over the history of this survey. This finding is consistent with other measures of inventory, such as the IAR’s Months Supply of Homes for Sale indicator, which recently dipped below five months of supply for the first time on record.   

In most cases, this supply and demand dynamic should benefit sellers, as 68 percent of Realtors said that homes are spending less time on the market so far this spring, and 71 percent of respondents expect single-family house prices to increase in the next three to six months.  

Note: This survey is conducted by the Indiana Association of REALTORS® and the Indiana Business Research Center. All survey respondents are members of the Indiana Association of REALTORS®. View the archives page to access other releases.

Survey Results

How would you characterize the level of buyer traffic for single-family homes over the past 30 days?

N=485

Values above 50 indicate traffic is viewed as stronger than average.

How would you characterize the level of seller traffic for listing single-family homes over the past 30 days?

N=485

Values above 50 indicate traffic is viewed as stronger than average.

Compared to one year ago, is your number of pending sales:

N=481

Values above 50 indicate pending sales are higher.

Over the past 30 days, is the time for a home staying on the market until it is sold:

N=480

Values above 50 indicate length of time is increasing.

Over the next 3 to 6 months, do you think that single-family home prices will:

N=484

Values above 50 indicate prices are expected to increase.

Over the next 3 to 6 months, do you think that single-family home sales volume will be:

N=484

Values above 50 indicate volume is expected to be strong for the time of year. (Note: Question wording changed in 2014 Q4.)

Over the next 3 to 6 months, do you see the market:

N=482

Values above 50 indicate the market is expected to improve for buyers.

What do you think are the most important factors driving the residential real estate market currently and/or in the future?

N=423