The Indianapolis real estate market, like many others across the United States, has seen its fair share of ups and downs over the years. In 2023, it continues to evolve, shaped mostly by two key words: interest rates. If you’re a homebuyer, seller, or investor looking to make a move in the Circle City, it’s crucial to stay informed about the latest trends to make wise decisions. In this blog post, we’ll look into the key trends currently influencing the Indianapolis real estate market, providing you with valuable insights and guidance on how to navigate this dynamic and exciting environment. Whether you’re searching for your dream home, planning to sell your property, or exploring investment opportunities, understanding these trends can be the key to your success.
Median Sales Price
Sale price continues to tick down over the last few months, now sitting at $285,000. This number peaked in July of this year at $299,900. It’s no surprise we’re seeing a downturn here which is completely normal when the winter months come around. As we’ll see in the coming charts, there’s really one big thing that’s causing sale price to remain mostly steady and that’s lack of new listings.
New Listings
We’re down 9% from last year’s number of 3,343. In October of 2021, this number was 4,158, which means we’re 27% less than that this October. It’s really no mystery as to why this is. With rates hovering around 8% and most homeowners having locked in a rate less than 5%, people just aren’t willing to sell right now only to take on an 8% rate. Lack of new listings is the biggest driver of today’s market.
Days on Market
Days on market stays flat from month to month at 15. Compared to last year we are up a few days. This number peaks every January so we’ll see how high this number goes in the next few months. Last January, this number got to 37 days!
Unsold Listings
This is really interesting to me. Unsold listings are “listings that were withdrawn, cancelled, or expired.” As we can see, this is up 73.8% from last year and continues to spike up this year. This number spikes every October/November, so hopefully we tick back down as we head into 2024. To me, this is mostly due to sellers overpricing their properties and not adapting to today’s market.
!!New Construction!!
New construction presents a fantastic opportunity for buyers who are looking to escape the challenges of higher interest rates. I get more and more questions about new construction as people are learning of the incentives it provides. In today’s market, builders are recognizing the need to make homeownership more accessible and appealing. These can include financial contributions towards closing costs and discounted interest rates closer to the 6% range, significantly lowering the overall cost of the home. This not only eases the initial financial burden for buyers but also provides the chance to lock in a more favorable mortgage rate for the long term. This secures both peace of mind and a more affordable investment in their dream home. In a time when affordability is a top concern, new construction can be a winning strategy for those seeking to make their homeownership aspirations a reality without the burden of high-interest rates. There are several fantastic neighborhoods with these incentives. Let me know if high interest rates are deterring you from a new home!
Conclusion
Today’s market is an interesting one that is being held hostage by interest rates. Whether you’re attracted to the urban charm of downtown Indianapolis or the quiet neighborhoods of its suburbs, understanding the prevailing trends is crucial to making informed decisions. As the year unfolds, staying up-to-date with market developments, working with experienced real estate professionals, and being flexible in your approach will be key to achieving your real estate goals in the Circle City.