April housing data for Indianapolis was released by Realtor.com and is available on Circle City Data’s Chart Book product.
After a sharp YoY rise in Median Days on Market in March, that metric’s increase slowed dramatically, up only 2.5% since the same period last year.
The Number Worth Knowing: Housing Inventory is up 32% YoY, likely driven by 3,764 new listings (up 21% YoY).
Are homeowners finally ready to break up with their sub-4% mortgage rates? Are they sitting on so much equity that the sting of a higher rate hurts a little less? Maybe a little of both?
The Shift is Happening
Regardless of the reason, recent movements in the Indy housing market point to a significant shift in prices, supply, and demand. After rebounding from the 2008 housing crisis, the Indy housing market steadily climbed and held inventory between 4,000-6,000 homes each month in the 4 years leading up to the COVID-19 pandemic. During COVID, a new normal set in with lower inventory and sharply rising prices due to low interest rates.
Now, it appears the Indy housing market is looking to break out of that COVID market, even nudging back toward pre-pandemic price levels. This is not a phenomenon unique to Indy, but Indy is experiencing much milder shocks than the Sun Belt and once-hot western cities like Denver, Portland and Austin.
But are houses becoming more affordable?
The shift in the Indy housing market is happening while many US residents feel the country is going deeper into an affordability crisis. So although the Indy market is seeing softening prices and increased inventory, will buyers without home equity be able to participate in the market? If the rest of the country is any indication, the unfortunate and likely answer is no. But Indy remains an affordable city compared to most and we can hope that status remains true for the foreseeable future.
Chart Book by Circle City Data publishes updated housing metrics for the Indy market the first week of every month. Create a Chart Book account and get free downloads of all data in the application.