Indy housing market to be weak another year, report says

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The correction underway in the Indianapolis housing market will linger until mid- to late 2008, according to an assessment released today by Metrostudy, a Houston research company with an office in Indianapolis.

The study, Metrostudy’s first in Indianapolis, found an oversupply of houses and construction starts in the second quarter. The region in the second quarter generated 3,024 single-family starts-175 more than the number of closings during the period.

Moreover, a two-year supply of vacant developed lots was on inventory as of June.

“Indianapolis is experiencing what many other markets are experiencing nationally-an oversupply of homes on the market, Dax Meredith, director of Metrostudy’s new Indianapolis division, said in a statement.

“Potential buyers are waiting to see what will happen-week after week-as builders continue to discount and offer incentives to buyers.”

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