Year-End Real Estate Market Recap for Indiana

The market in Indiana remains as wild as it has been the past few years. Here are some perspectives with valuable overviews.

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Prices Haven’t Improved

Indiana Business Review casts a dim view on prices. “Indiana’s unsustainably high rate of house price appreciation finally began to decline in 2022, with the roughly 7% increase experienced in September the smallest year-over-year change since the early days of the pandemic. However, with 30-year mortgage rates doubling from 3.45% in January of this year to 6.90% in October, these slowing price gains offer little relief to prospective home buyers. To illustrate how this recent surge in mortgage rates is bringing a chill to housing markets around the state, Federal Reserve Bank of Atlanta compares year-over-year changes in median sales prices for August 2022 to changes in the estimated monthly mortgage payment on the median-priced home over the same period. In the 11-county Indianapolis metro area, for instance, the median sales price in August 2021 was $251,000, and with mortgage rates slightly below 3%, the monthly payment at this price level was an estimated $1,260. By August 2022, the median sales price increased 15% to $289,000, but with mortgage rates now up to nearly 6%, the monthly payment on the median-priced home was $1,850—a 47% increase year-over-year.” https://www.ibj.com/articles/prices-for-existing-central-indiana-homes-still-rising-amid-sinking-sales

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Sales a Record Low

Home values in Indiana rose by 47.12% in the last 5 years. But home sales decreased by 24.1% in September 2023 YoY. Maybe due to the mortgage rate climbing to a two-decade high of nearly 8%! And the number of houses for sale in IN was 21,000 in the month, 7.7% less than in 2022. Indiana’s housing market is bearish. The decrease in home sales can be attributed to not having enough properties in The Hoosier State. The supply is 2 months, which makes IN a seller’s market. So, if you want to sell an Indiana property, now is the right time to list it on MLS. resale inventory and strong demand continued to drive up existing home prices, marking the third consecutive month of year-over-year median sales price increase. A resurgence of mortgage rates is likely to contribute a further decline in existing home sales in the months ahead.

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Call Lesa Miller at (812) 360-3863 or go online at https://lesamillerrealestate.com/ where you can read her posts on other social media accounts and websites.