The Carmel IN housing market report for September 2012 presents an interesting possible scenario in upcoming months: a shortage of Carmel homes for sale. How could this be, you might wonder, after more than three years of excess inventory? With a 12.4 decline in New Carmel Listings as compared to September 2011 and a current Months Supply of Inventory at just 4.73 months it becomes very possible, especially when combined with a 2 percent drop in New Listings and a 29.2 percent plummet in Months Supply of Inventory throughout Hamilton County.
Months Supply of Inventory calculates the inventory of homes available in relation to the number of homes to sell per month. According to the National Association of REALTORS, a 4-6 month supply of inventory is considered a balanced market, favoring neither buyer nor seller. Less than a 4 month supply of homes is considered an undersupply and favors sellers, while more than 6 months supply of homes is an oversupply which favors buyers.
So while sales prices for Carmel homes continue to slide (Median Sales Price was down 16.8 percent in August 2012 and 10.5 percent in September as compared to the same months in 2011) that trend is bound to change if inventory continues to be depleted faster than new homes come on the market. Be sure to check next month's Carmel IN housing market report to see which way the numbers are headed.
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