Metrostudy Report - Indianapolis, IN– November 1, 2011 - 3Q11 shows a stagnant job market in Indianapolis, though the housing market showed small signs of improvement, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

Unemployment in Indianapolis currently stands at 8.3%, up a half a point from the previous quarter, indicating a stagnant job market. Indianapolis has lost approximately 10,300 net jobs in the past 12 months. “Not only has the number of jobs lost kept the potential buyer pool from growing, but even those employed may have been hesitant to act given a volatile economy.

Nevertheless, an improving economy should provide the housing market with potential home buyers over the next 12 to 18 months,” said Chris Huecksteadt, director of Metrostudy’s Indianapolis division.

“Through the first three quarters of 2011, there has been continued growth in terms of new home starts and closings,” said Huecksteadt. Indianapolis started 1,049 new homes in 3Q11, up 41.5% from 3Q10 starts. A total of 1,101 new units were closed, up 15.5% from 3Q10 closings.

“What is encouraging is that housing supply levels continue to fall throughout the Indianapolis market,” said Huecksteadt. Finished and vacant inventory is at 787 units, currently half of what it was 3 and a half years ago. New home inventory is at a 2.7 month supply and overall housing inventory is in the 2.5-3.5 month range.

“The housing market will remain below its potential as long as unemployment remains high and job creation lags,” said Huecksteadt. “Although the job market appears to be righting itself locally, there is still a long way to go before the economy can be pronounced healthy.”

For information contact:
chris huecksteadt @ 847.214.5291
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