Indiana

Bombarded by homeowners losing their homes, Indiana real estate owners are protesting higher property taxes in increasing numbers, and they seem to be getting a lot done, ousting the Indianapolis mayor.

A growing inventory of homes has produced one of the nation’s largest foreclosure markets in Indiana.

However, outside of real estate the Indiana economy is fundamentally strong, and the state is attracting new business development primarily because state taxes are less than many other states in the Great Lakes region. Indiana is also experiencing a growing job market, which is key to its future strength in home ownership.

The streets are lined with for sale signs in Indianapolis, where foreclosures nearly increase daily as a result of the credit crunch and falling home values. Indiana has been hard hit by the mortgage mess.

Investors have flocked to the "Speed City" as Indianapolis is known for the annual Indianapolis 500 race, to purchase foreclosure properties while mortgage companies and other lenders will negotiate with them before foreclosures level off. The housing market in Indianapolis, however, doesn’t seem to show any signs of improving for a long time as prices decline.

City	Forecast
Indianapolis	− 10.7%
Gary	− 7.2%
South Bend	− 7.9%
Fort Wayne	− 6.4%
Bloomington	− 5.8%

The inventory of homes has dropped slightly, but mainly because of normal seasonal adjustments. Snow Belt states like Indiana see a lower housing inventory during winter months. Housing Predictor forecasts slower sales in Indianapolis in 2008 with 10.7% deflation.

In South Bend home sales are also slow and prices are heading downward. South Bend will see a slower year in housing sales in 2008 as the credit crunch squeezes the community further on the way to 7.9% in forecast deflation.

In Gary, which is strong working town homes are selling, but a growing inventory is having a major impact on the market place. Gary should see sales slightly improve come summer time, but not enough to keep the market from further deflation, forecast at 7.2% for the year.

Foreclosures are increasing in Bloomington, which has suffered through a rough market for more than two years now. Prices will decline an average of 5.8% in 2008.

The housing market is also rough in Fort Wayne, where prices have dropped to levels of almost five years ago on some properties. The increase in inventory and foreclosures that have resulted from adjustable rate mortgages is making an impact on Fort Wayne. The marketing time to sell homes has nearly tripled since real estate prices peaked. Average home values are forecast to drop another 6.4% during the year.