Happy Tuesday everyone! Hope we’ve all had a good week so far. Let’s take a look at the Indy area market as February numbers are in. First off, no real surprises in my opinion. Prices are still above last year as fewer sales are happening. Active inventory is fairly interesting across the Indy area as it’s nearly 80% higher than February of 2022. The market is still weighing higher interest rates with lower inventory levels to find price discovery at the moment. As we head into spring, it’ll be interesting to see what a mixed bag inventory levels combined with the summer buyers do to pricing.
Sale Price
Sale prices continue to be higher than the previous year. 8% gain from February of 2022. Not bad! If you break this into the different counties, you’ll see some differences, but most have experienced a small gain. We have come down about 8.5% from the highs of 2022. I don’t think it’s all that surprising as rates have continued their upward trend scaring a lot of buyers away.
Active Inventory
I think this is pretty interesting as inventory has dropped 18% since January, and 38% since October of 2022. Now, to be fair, this isn’t all that abnormal as inventory does typically drop over the winter months. Hard to blame folks as I wouldn’t want to move in the cold weather either. Some people might be concerned with the fact inventory has gone up 80% since February of 2022. HOUSES SITTING ON THE MARKET MEANS A CRASH IS COMING!!! Hold on a sec. If you look at the number from a wider lens, you can see Feb 2022 inventory levels were the lowest in years (potentially ever) and the current number of 3,247 is still well below normal levels in the past 7 years. If this number spikes up to 7000+ (which I don’t think it will as people are essentially locked into their 3% interest rates and don’t want to sell) then we may see some prices decreases.
Conclusion
All in all, I think the market is starting to pick back up. The last deal I did we had to beat out multiple offers for the first time in a while. When spring rolls around, families start to move and I think we’re going to see that again. With the limited inventory, I still think prices remain steady as buyers have fewer choices, but we’ll see!