The Central Indiana Real Estate Market

callcarpenter.com

3rd Quarter 2012

Carpenter Reports

The momentum in the central Indiana housing market continued through the third quarter of 2012 but at a slower pace. The good news is that the inventory levels, numbers of houses on the market, have continued to decline, down 12.7% year-over-year. That’s good news. Fewer houses on the market means stronger prices. We suspect the decline in bank-owned (foreclosed) properties hitting the market continues to drive this decline. Again, good news.

The increased sales activity in housing continues from earlier quarters as well albeit a bit slower. Pended Sales were up 7% year-over-year for the third quarter. That is a bit slower than the 9.2% we saw in the second quarter and the 13.2% in the first quarter.

We saw Closed Units, homes that have pended and closed, increase by 10.9% year-over-year in the third quarter. While that’s good, it does reflect a decline from the 13.9% increase in the second quarter and the 13.6% in the first quarter of 2012. Again, indicating a possible slowdown in the momentum of the housing recovery in central Indiana.

The year-over-year Average Sales Price (ASP) is slightly down, and the current actual ASP slipped from $160,484 in the second quarter to $154,026 in the third quarter.

It’s too early to tell, but this apparent pause in the momentum experienced earlier in the year may well be in reaction to the pending elections and the uncertainty of the year-end “fiscal cliff.”

As I am writing this summary, I note that the September Consumer Confidence Index report showed a strong increase to over 70. This is the highest level year-to-date. That’s a positive indicator for housing. In addition, an early look at homes pended in central Indiana for the first ten days in October shows the strongest level of seasonally adjustedactivity since April of 2010 when we saw the last of the Federal housing incentives. Both of these may well indicatethe pause in the third quarter of 2012 was short-lived and the housing recovery is building momentum again in central Indiana.

The next issue of Carpenter Reports is out in early January. By then, we’ll be able to quantify the impact of both the elections and the pending “fiscal cliff” on home buyers in central Indiana. Hindsight will provide us a clear view of what’s ahead. We’ll just have to wait and see.

Is The Momentum in Housing Slowing?

Warm Regards,

David CavenessSenior Vice PresidentCarpenter Realtors®

caveness@callcarpenter.com

October, 2012

3Rd Qtr ‘11 3Rd Qtr ‘12 2011-2012 2011-2012Units Closed Units PendingListing Inventory UnitsAverage Sale Price(closed Units) Avg. Price per sq.ft.

Central Indiana Summary

Average Residential Sale Price - Closed Units

CoUnTy 3Rd Qtr ‘11 3Rd Qtr ‘12 2011-2012 2011-2012Boone HamiltonHancockHendricksJohnsonMadisonMarionMontgomeryMorganPutnamShelby

UnIT CHAnge % CHAnge

TOTALS $158,288 $154,026 -$4,262 -2.7%

page 3

doLLAR CHAnge % CHAnge

$247,787$253,653$136,178$160,501$152,926

$81,514$121,703

$89,959$136,775$122,519$101,189

$254,313$244,147$143,590$155,365$158,270

$76,427$124,317$101,889$138,142$126,748$108,217

+$6,526-$9,506+$7,412-$5,136+$5,344-$5,087+$2,614

+$11,930+$1,367+$4,229-$7,028

+2.6%-3.7%+5.4%-3.2%+3.5%-6.2%+2.1%

+13.3%+1.0%+3.5%+7.0%

6,4186,250

13,643$158,288

$83.30

8,536 6,686

11,914$154,026

$80.64

+699+436

-1,729-$4,262

-$2.66

+10.9%+7.0%

-12.7%-2.7%

-3.2%

Pending Residential Sales - Units

CoUnTy 3Rd Qtr ‘11 3Rd Qtr ‘12 2011-2012 2011-2012Boone HamiltonHancock Hendricks JohnsonMadisonMarionMontgomeryMorganPutnam Shelby

UnIT CHAnge % CHAnge

MARIon TwPS 3Rd Qtr ‘11 3Rd Qtr ‘12 2011-2012 2011-2012Center neCenter SedecaturFranklinLawrencePerryPikewarrenwashingtonwayne

UnIT CHAnge % CHAnge

TOTALS

TOTALS 6,250 6,686 +436 +7.0%

page 4

144102109218316297240295442293

2,763

185108115231393333242307447338

2,699

+28.5%+5.9%+5.5%+6.0%

+24.4%+12.1%

+0.8%+4.1%+1.1%

+15.4%

-2.3%

+41+6+6

+13+77+36

+2+12

+5+45

-64

2171,169

248550508292

2,763126204

69104

2471,402

235571520415

2,699123229121124

+30+233

-13+21+12

+123-64

-3+25+52+20

+13.8%+19.9%

-5.2%+3.8%+2.4%

+42.1%-2.3%-2.4%

+12.3%+75.4%+19.2%

Listing Inventory Units

CoUnTy oCT 1, 2011 oCT 1, 2012 UnIT CHAnge % CHAngeBooneHamiltonHancockHendricksJohnsonMadisonMarionMontgomeryMorganPutnamShelby

MARIon TwPS oCT 1, 2011 oCT 1, 2012 UnIT CHAnge % CHAngeCenter neCenter SedecaturFranklinLawrencePerryPikewarrenwashingtonwayne

TOTALS

TOTALS

page 5

530299234458785630491689830704

5,650

465265176446707503431620668568

4,849

-65-34-58-12-78

-127-60-69

-162-136

-801

-12.3%-11.4%-24.8%

-2.6%-9.9%

-20.2%-12.2%-10.0%-19.5%-19.3%

-14.2%

5772,429

5681,1211,047

8075,650

280569297298

13,643

5002,005

4971,064

891760

4,849270538276264

11,914

-77-424

-71-57

-156-47

-801-10-31-21-34

-1,729

-13.3%-17.5%-12.5%

-5.1%-14.9%

-5.8%-14.2%

-3.6%-5.4%-7.1%

-11.4%

-12.7%

Average Sales Price Per Sq. Ft.

AveRAge SALe PRICe PeR $/SQ.FT. CoUnTy 3Rd Qtr ‘11 3Rd Qtr ‘12 yR. oveR yR.Boone HamiltonHancockHendricksJohnsonMadisonMarionMontgomeryMorganPutnamShelby

AveRAge SALe PRICe PeR $/SQ.FT. MARIon TwPS 3Rd Qtr ‘11 3Rd Qtr ‘12 yR. oveR yR.Center neCenter SedecaturFranklinLawrencePerryPikewarrenwashingtonwayne

page 6

TOTALS

Note: These statistics are compiled by Carpenter Realtors® from data provided by the MetropolitanIndianapolis Board of Realtors® through the BLC. While deemed reliable, neither Carpenter Realtors®

nor the Metropolitan Indianapolis Board of Realtors® guarantees the accuracy of the data or the analysis.“Homes Pended” means property was placed under contract to sell, but not necessarily yet closed.

“Homes Pended”is used in the report to provide a more current measure of market conditions. Marion County data includes partial data for Center Township. Listing inventory data represents single

family homes only.

Founded in 1970, Carpenter Realtors® is one of Indiana’s largest residential real estate companies with 30 branch locations and nearly 600 sales associates serving 13 central Indiana counties.

$106.48$103.74

$70.56$79.18$79.86$48.78$70.59$53.17$75.57$71.27$61.59

$83.30

$105.61$103.41

$70.66$76.27$80.02$46.63$72.36$61.60$78.45$75.49$62.05

$80.64

-0.8%-0.3%+0.1%-3.7%+0.2%-4.4%+2.5%

+15.9%+3.8%+5.9%+0.8%

-3.2%

TOTALS

$63.30$37.63$52.04$64.16$78.54$60.94$68.85$45.88

$106.53$47.40

$70.59

$72.53$39.12$53.73$70.85$81.26$63.11$66.52$49.71

$106.54$48.66

$72.36

+14.6%3.9%

+3.3%+10.4%

+3.5%+3.6%-3.4%+8.4%+0.0%+2.7%

+2.5%