(Indianapolis, Ind.) – Indiana home prices and market activity across continued to outpace 2011 in August.

The August 2012 Indiana Real Estate Markets Report from the Indiana Association of Realtors shows the number of closed home sales increased to 6,697, up 12.2 percent from August of 2011. The report includes sales of detached single family homes, condominiums, and town homes.

The median sale price of those homes increased 3.8 percent to $121,500 statewide.

"August capped two great seasons for the residential real estate market statewide," said Karl Berron, CEO of the realtors association. "With regard to closed sales, last month (August) was actually the fourteenth consecutive month of year-over-year increases and put 2012 one step closer to surpassing years in which a federal home buyer tax credit was available. With regard to home prices, this past spring and summer have put values back to levels not seen since the recession began."

Locally, housing market improvements were seen in Dearborn and Ripley counties in August. Dearborn County had 41 sales, up almost eight percent while Ripley County sales jumped 57 percent to 22.

However, both counties reported good news for buyers and not so good news for sellers. Dearborn County’s median sales price in August fell 0.4 percent from the year before to $132,000. In Ripley County, the median price declined 3.5 percent to $107,300.

Although 2012 housing numbers are largely encouraging, Berron warned that sustained recovery will not happen without real employment and wage growth.

"Consumers must be confident in both the greater economy and their family finances before signing on the dotted line. Thus far, cheap borrowing costs and the fact homes here have historically held value have been the glue binding things together," he said.

Local home sales statistics are listed below:

Data source: Indiana Association of Realtors