Hoosier home sales market recovery
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The Indiana Association of Realtors says home sales in the Hoosier State continued their 2023 recovery in March with both monthly sales and new listings increasing more than 30% from February. The IAR says Indiana’s median days-on-market from listing to a pending contract dropped a full week as demand increased from February to March, from 23 to 16 days.
The organization says the median sale price also increased to $235,000, compared to $230,000 in February.
“Homebuyers continue to come off the sidelines in 2023 despite higher mortgage rates,” said IAR president Lynn Wheeler. “Sales have recovered at a faster pace than new listings – local markets vary, but we’ve certainly seen homes selling faster as Realtors help buyers and sellers navigate a more competitive climate.”
While homes sold faster and at a higher price in March, IAR says there are other signs of a more balanced market for homebuyers. For instance, on average, homes sold for 96% of the asking price, compared to 100% of listing price last March and 97% across the past five years.
IAR says the latest numbers show healthy demand in Indiana’s housing market, especially considering 30-year mortgage rates averaged around 4.25% last March compared to 6.5% last month.
The organization says March marked the one-year anniversary of the Federal Reserve’s first of nine consecutive interest rate increases. IAR CEO Mark Fisher said elevated mortgage rates are impacting buyers and sellers despite recovering home sales in 2023.
“Current homeowners with mortgage rates locked in at less than 4% are certainly more hesitant to list their home and look for a new one with rates over 6%,” said Fisher. “Even with a strong March for new listings, we still need sustained progress on inventory to relieve pressure on the market – especially for first-time buyers.”
IAR says market trends were consistent across urban, suburban, and rural counties.