ANDERSON — Demand is up for home sales triggering an increase in value for recent home sellers in Madison County.
And higher home values can translate into a better economy.
Across the state, overall home sales have jumped 14 percent over last year sales according to statistics compiled by F.C. Tucker Company.
“Prices are up, inventory is tightening, and homes are selling faster, staying on the market an average of 81 days – all signs of a strengthening market,” said Jim Litten in a press release.
Litten, who is president of F.C. Tucker Co., said the statistics are a positive start to 2014.
Madison County experienced a 1.2 percent increase in the number of pended home sales last month over the previous year’s sales, but the year-to-date change was an increase of 6.5 percent.
Local home sellers also saw an 8.4 percent increase in the sale price of their home.
Overall, home values have increased more than 20.3 percent in the last four years. In 2009, the average home sold for $74,209. Today, the average home is selling for $89,287.
Another factor driving up home sales is a reduction of available inventory.
Last month there were only 710 homes listed in the county compared to 743 homes in 2012. The report, which also lists statistics for Boone, Hamilton, Hancock, Hendricks, Johnson, Marion, Morgan and Shelby counties, showed a reduction in inventory across the state.
With the exception of Johnson County, which reported an 8.5 percent increase in inventory, every county saw a reduction in homes for sale in December. Madison County’s inventory of active home listings was down 4.4 percent last month.
According to the Federal Reserve, homeowners nationwide saw a 4.5 percent gain in the third quarter with a $9.7 trillion in home equity.
Homeowners cashing in on the increased value of their home also tend to spend more. In November, the Commerce Department reported an increase in personal spending and according to Ward’s Automotive Group, auto sales were reported at 16.3 million.
Like Traci L. Moyer on Facebook and follow her @moyyer on Twitter, or call 648-4250.