The
past five years have seen weak nominal price growth resulting in near stagnate real prices and in fact the 2006 decline brought real prices back to levels last seen in 1998. The Indianapolis mortgage-debt-to-income ratio has remained steady throughout the past five years despite a national increase, indicating there should be little to no concern about a Indianapolis market bubble. Despite this fact, 2006 finished with the first nominal price drop since 1982 (worst year on record). Recently, Indianapolis has become a paradox of positive affordability ratios with negative local consumer sentiment due to poor national psychology and poor local economics. Consequently, nominal prices may stagnate short term before returning to a long term growth phase.
SEE PRIOR INDIANAPOLIS PEAKS & TROUGHS Next >
|
Year |
|
|
|
|
Indianapolis Mortgage-Debt-to-Income Ratio |
National
Mortgage-Debt-to-Income Ratio |
2001 |
$106,700 |
4.9% |
$121,300 |
2.1% |
11.7% |
17.8% |
2002 |
$110,100 |
3.1% |
$121,800 |
0.5% |
11.1% |
17.5% |
2003 |
$112,400 |
2.1% |
$122,200 |
0.3% |
11.0% |
18.3% |
2004 |
$115,500 |
2.8% |
$122,400 |
0.2% |
10.8% |
19.6% |
2005 |
$120,900 |
4.7% |
$124,600 |
1.8% |
11.5% |
22.6% |
2006 |
$117,100 |
-3.2% |
$117,100 |
-6.0% |
11.6% |
21.7% |
|
