Start your engines! Indy’s favorite month is here and the real estate market continues to present fascinating trends and opportunities. Whether you’re a first-time homebuyer, a seasoned investor, or simply keeping an eye on local market dynamics, understanding these trends is crucial. This month, we delve into the key factors driving property values, explore shifts in buyer and seller behaviors, and forecast what these could mean for the market as we approach the bustling summer season. Join us as we break down the latest developments, offering insights that are indispensable for anyone involved in the Indianapolis real estate scene.
Active Inventory
We’re going to start here because I think this is the biggest factor in the market right now. We currently sit at 3,437, which is up 8.9% from last year so that’s good! The bad news is we’re still nowhere near the 2016-2018 levels. This low inventory is keeping prices high (which we’ll look at next) and days on market low as buyers still don’t have all that many options.
Sale Price
We’re officially approaching the record set back in July of 2023 of $299,900. As summer approaches and inventory stays low, I am guessing we’ll surpass the $300k number for the first time ever.
Days on Market
We’re continuing to tick down from the 31 days back in December. This number typically bottoms out in May/June so we’re probably looking at a solid week of homes being on the market here this month. This is essentially a product of low inventory levels where buyers just don’t have tons of choice. Buyers need to move quick and in order to do that, make sure you’re pre approved if you’re seriously looking for a house!
Pending Fallouts
This is a new metric on the MLS system and I’ve found it pretty interesting. These are properties that go under contract and then go to any status other than closed. Most of these probably go to active after financing or inspection goes wrong. I’m not exactly sure why this continues to go up, especially because we have less new listings compared to years past. This is up 15.9% from last year. Here’s the continued trend up since 2016 (531, 430, 587, 651, 531, 537, 543, 804, 932) Very sharp increase the last two years and we’ll continue to monitor where this goes.
Conclusion
As we conclude our May 2024 analysis of the Indianapolis real estate market, the landscape is ever-changing. Inventory is up, yet below past levels, prices are hitting new highs, and homes are selling fast, averaging just 9 days on the market. For those entering the market, it’s a time rich with opportunities, demanding smart strategies and quick decisions. Stay tuned for more updates and insights to navigate this dynamic market effectively.