2023 is in the books! As we head into 2024, let’s take a look at the latest data from December of 2023 here in the Indianapolis area. Whether you’re a prospective buyer, seller, or simply a curious observer, this exploration into the current state of the Indianapolis housing market promises valuable insights that navigate the intricate balance between supply and demand. Let’s dive in!
Median Sale Price
Sale prices in Indianapolis trended down from November and equaled December 2022. In 2021, this number was $251k so we’re up a good bit from there. The sale price of homes in 2023 peaked in July at $299,900, which is the highest ever recorded here. A lot of people were calling for bigtime declines in sale prices, but that just never came to fruition (spoiler alert, lack of supply is why).
Active Inventory
Inventory and interest rates are the two main drivers of the market right now. As you can see pretty clearly, inventory once again trended down to 3,026 available homes. This number will most likely continue to trend down as it usually reaches it’s low point in March before the market picks back up again. People are still unwilling to list their homes when they secured a low interest rate just to buy a new one at double the rate.
Unsold Listings
This one continues to skyrocket as the listings that actually are available are going unsold for a variety of reasons. This trend is far worse in Marion County. I think the main reason there is more and more people are moving to the suburbs as the work from home movement looks like it’s here to stay. I also wanted to see what the ratio to unsold listings was to active inventory and as you can see, it’s quite staggering. Typically, this unsold listings is about 12% of active inventory. This past December, that number tripled to 39%.
The Indianapolis market remains strong as prices are staying high. Looking at 2024, everything in my opinion will revolve around interest rates and which direction they go. Most think they will stay the same or come down. If that’s the case, sale prices will absolutely go up and we’ll see a lot of buyers offering concessions like we did in 2021/22. If you’re capable of buying now, we’re getting some incredible deals for buyers. My last buyer got a 5.99% interest rate and paid $0 in closing costs. If, however, rates trend upwards, we finally might see some downward pressure on prices as even more buyers get priced out. Until next time, happy house hunting!