Foreclosures in the Indianapolis Metro Area grew at a steady pace prior to 2006. After 2006, when many parts of the US rapidly increased, the Indianapolis area hit a plateau according to the number of foreclosures sold on the BLC (MLS). We cannot ignore that there are other methods that lending institutions are using to liquidate properties and that there are a percentage of foreclosures that sell to third parties at the sheriff sales; however, selling on the BLC is still by far, the most predominant method used.

When compared to many of the states that experienced recent periods of high appreciation, Indiana has had much less of an impact and increase in foreclosures. Some coastal states such as Florida and California currently are experiencing distressed property sales well over 50% compared to 25% of the homes sold in the Indianapolis area by transaction count. When you consider the percentage by volume, the number is much lower, only 13%. The percentage is only 13% when you consider the actual volume of foreclosures in the Indy Metro area.

Even though the Indy Metro Area is not immune to foreclosures, I believe that we have started to level off and are starting to see a ceiling in our area based on the past 3 years’ data. This is great news for the Indy Metro area and actually correlates with the reports that Indianapolis is one of the most affordable areas in the US and is projected to be one of the first cities to recover.

Submitted by Scott Smith