Berkshire Hathaway HomeServices Indiana Realty, one of the state’s market share leaders for real estate transactions and sales volume, set a company production record by generating $1.05 billion in sales volume in 2018 on nearly 5,200 transactions.
The brokerage crossed the billion-dollar threshold for the first time and its CEO anticipates another strong year across the board for real estate in Indiana.
“2018 was a banner year for our team,” said Craig West, Indiana Realty CEO. “The market grew in response to favorable market conditions and our team stepped up to serve a significant amount of the business in Central and Southern Indiana. We’re proud of the work and prouder to have nearly 5,200 satisfied homebuyers and sellers.”
Indiana Realty’s sale volume rose 7% over 2017 totals. The brokerage’s average sales price at $202,748 rose 9.4% over the previous year and was 8.3% ahead of the state’s average sales price in 2018. “Our sales professionals work hard for their clients and achieve top dollar for their listings,” West said.
Indiana will likely see another strong year for real estate sales, West explained. The state’s economy will grow at about a 3% clip this year, according to the Kelley School of Business at University of Indiana, and job growth will be strong. “Jobs in the Indy Metro area grew 21% in 2018 and based on the percolating economy, I don’t see that slowing down. These are the fundamentals of another solid year for real estate.”
West said Indiana home sales were hampered in 2018 by a general lack of re-sale inventory in the state. “Demand outstripping supply,” he said. Yet with new-home sales driving the local market, particularly around the Indy Metro region, West believes more re-sale homes will come to market in 2019, easing the inventory challenges.
“Most people buying new homes have a home to sell,” West said. “With more homes coming to market this year there will be less upward pressure on home prices across the state, so I predict a leveling off of home prices in 2019. Greater balance in the market is good for everyone.”
Mortgage rates, which backed off recent highs established in the second half of 2018, should remain below 5% for a 30-year conforming mortgage, West added. “This should help many homebuyers.”
© 2019 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.