“Total sales overall across the state were down,” Brian Thompson, a realtor and representative of the Indiana Association of Realtors, said.
Despite an 8-percent uptick in home sales for the state during December 2014, total annual home sales in 2014 were down 1.6 percent from 2013, while the total number of new listings dropped 2.9 percent.
Monroe County differed little from the state performance, with 1 percent drops in new listings. Total sales and a 3.9 percent increase ?in prices.
“People think price increases are bad,” Thompson said of the Monroe County real estate market. “That isn’t always the case.”
Rising prices generally indicate higher demand, Thompson said.
“There’s a lot of really good buyers,” Thompson said. “We have a shortage of inventory.”
Thompson attributed increased demand to Bloomington’s increasing appeal.
“People want to retire here,” Thompson said. “They want to live here. We have the University, art and music.”
Proposed land use regulations by the Monroe County Planning Department also had an effect on the market, Thompson said.
“They are changing zoning to control urban sprawl,” Thompson said. “That has driven up lot prices and reduced the supply of lots.”
Larry Wilson, director of the Bloomington Planning Commission, outlined the proposed regulations.
“They require major subdivisions to be on sewer systems,” Wilson said of the regulations. “It’s a standard that most urbanizing counties require.”
Developers are currently allowed to install septic tanks or sewer systems in new ?subdivisions.
The regulations will not affect overall pricing but will change who pays and when they pay for it, Wilson said.
“Cost per lot is born by purchasers if septic tanks are installed and by developers if it is a sewer system,” ?Wilson said.
Wilson acknowledged the regulations would have an effect on the real estate market.
“It will keep some people from developing major subdivisions because they won’t have the financing,” ?Wilson said.
He disagreed that the proposed regulations had an effect during the 2014 calendar year.
“I don’t think we have much of an impact on the current real estate market,” Wilson said. “If we have that level of development we want to make sure services are available.”
The proposed regulations are due to be voted on by the Monroe County Commissioners soon, Wilson said. However regulations end up affecting the market, Thompson said he is looking forward to a better 2015.
“Good interest rates and new loan products will help the market,” he said.
Borrowers who previously would not have been able to receive a loan will now be able to, Thompson said.
“For the most part, Bloomington has a very stable and strong market,” Thompson said. “2015 will be better than 2014.”
