Indiana's inventory of available houses has dropped more than 13 percent since last year, while demand continues to rise.
A leading indicator for Indiana’s economy is highest in seven years in part because of growing confidence in the housing and automotive sectors.
Real estate experts say low interest rates are fueling the market.
The number of new home construction permits issued in Kokomo has more than doubled over the first nine months of the year up from only six permits last year.
The number of home sales increased more than 17 percent from May 2011 to May 2012.
Johnson County and other nearby counties are reporting the fastest start to housing construction in several years.
The housing market and auto sales showed substantial growth last month.
Sales prices are increasing and more homes are being sold.
Kokomo was named the second most affordable housing market by the National Association for Home Builders.
Numbers released by the Indiana Association of Realtors shows housing prices are up in parts of the state and the number of pending home sales is also up.