Home sales sank in November in the seven counties covered by the Greater Northwest Indiana Association of Realtors, but continued to show a solid gain for the year-to-date over 2014.
November's sales of single-family, condominium and townhomes totaled 628 in Lake, Porter, LaPorte, Jasper, Newton, Starke and Pulaski counties, as compared to 678 in November 2014, a 7.4 percent decline.
But through November, 2015 remains a stronger year than 2014. In the first 11 months of this year, realtors closed sales on 9,094 homes, as compared to 8,637 in the first 11 months of 2014, representing a 5.3 percent gain.
And GNIAR Chief Executive Officer Peter Novak said sales so far in December have likely put Northwest Indiana ahead of all of last year already.
"I think when we look back at this year we'll look at it as a good, solid year," Novak said.
November's slowdown was due in part to federally mandated changes in the sale closing process, Novak said. Tight inventory also contributed.
The same story can be told across the country, according to the National Association of Realtors.
The organization's chief economist said low inventory and "affordability issues" played a role in a year-over-year November drop of 3.8 percent, and a month-to-month drop of 10.5 percent.
But economist Lawrence Yun said that the longer closing times brought about by the federal "Know Before You Owe" initiative could be the primary reason.
"Signed contracts have remained mostly steady in recent months and properties sold faster in November," Yun said. "It's possible the longer time frames pushed a latter portion of would-be November transactions into December."
Novak said he isn't sure whether complications of the new closing process, to which lenders and title companies are still adjusting, will be worked out in time to be resolved in December, but he said the current market is robust.
"Clearly demand is still there," Novak said. The month-to-month variations are occurring within "a healthy, normal market."
Strong demand is reflected in a median price in Northwest Indiana that's risen to $143,000 in November from $134,900 for the same month a year ago, a 7.4 percent increase. National numbers were $220,300 and $207,200 for the same months, a boost of 6.3 percent.
Realtors are also watching interest rates closely. Mortgage bundler Freddie Mac reports a 30-year, fixed-rate mortgage rose to 3.94 percent in November from 3.80 percent in October, though it's still down from a year ago, when it was 4 percent.
Novak said interest rates are expected to go up as Federal Reserve rate hikes trickle through the economy.