If you look at my townhome popularity, I mentioned how supply was outpacing demand.  Well, while that is true, the average sales price for condos in downtown is up, way up. 

Despite the fact the number of Indianapolis condominiums sold is down by more than 100 or 36% since last year, the average selling price rose to $324,541 in 2008.  This price jump represents an increase of almost $50,000 or 18% over the previous year's numbers.  Obviously, this means despite the decrease in units sold there are higher priced units selling in downtown Indianapolis. 

My best guess is that more and more people are finding that downtown living is more attractive with gas prices and the general cost of living increasing on a daily basis.  In addition, more and more developers are building higher end units in the downtown area with approximately 2,000 new units in the pipeline most of which are due to be completed by 2010. 

Other parts of the country saw a huge oversupply of downtown condos in the previous year's real estate boom and developers are hemorrhaging in areas like Miami.  While sales could be better here, this is certainly not the case for the condos in the downtown market. 

The downtown market is always a little more fickle and unpredictable than the suburbs, but I believe with the current projects underway the Indianapolis condo market is a good buy right now.  It appears to be on an upswing, but there are still deals to be had.

If you are in the market for a condo in Indianapolis, visit our website www.indysfinesthomes.com to view all the available condos that are currently for sale.