Happy Tuesday everyone! Hope we’ve all had a good week so far. Let’s take a look at the Indy area market as July numbers are in. As the real estate landscape evolves, we turn out attention to the latest trends, presenting invaluable information for both buyers and sellers. From housing inventory and pricing fluctuations, we’ll discuss the intricate details that are driving the current market conditions. Whether you’re a seasoned investor or a first-time homebuyer, join us as we unravel the key developments shaping Indianapolis’ real estate arena this month.
Sale Price
Sale prices continue to go up, albeit a little bit slower than the last few years. This might surprise a few people as media reports on national trends which have seen a small decline in pricing. This is another reason to remember that each market is vastly different. The main driver keeping prices up is the lack of listings as people continue to stay put with their 3% interest rates.
New Listings
Lot of red down arrows there! This is the main factor of the housing market right now in my opinion. Listings are down 22.4% from last year. From 2016-2022, the average new listings in July is around 4,500. This is a gigantic drop and shouldn’t be understated how big of an impact that is for the buyer and seller. It’s fairly obvious what’s happening here as 90% of people have an interest rate on their current home of less than 6%. The only people moving are the ones with circumstances that are forcing them to. For example, I have clients right now that are moving to be closer to a daughter having a baby, or going through a divorce. It’s rare to see folks moving who just want to move.
One Bright Spot For Buyers
One thing I don’t think that is being discussed enough is the opportunity for buyers to build a home. New construction right now is a fantastic alternative for savvy buyers. I know several builders right now all across the Indianapolis suburbs who are offering lower rates and thousands of dollars toward closing costs. Get in touch with me and I can walk you through what neighborhoods are offering these incentives!
Conclusion
The Indianapolis real estate landscape for July 2023 reveals a striking imbalance between supply and demand. Sure, demand isn’t great, but it’s still outweighing the number of available properties. As we navigate through this period of restricted inventory and static demand, both buyers and sellers must remain attuned to these dynamics. What happens with interest rates in the coming months is going to be extremely important. If they continue to rise and buyers are forced to leave the market, I think it’s almost a certainty we’ll finally see prices drop. We have already seen mortgage applications drop 3%. Stay informed on Indianapolis’ dynamic real estate market this July, where limited listings are driving impactful pricing trends.