August homebuying report shows mixed results, but some see signs of ‘balanced’ market
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It was a mixed bag for the Hoosier real estate market in August as the Indiana Association of Realtors reported a decrease in completed home sales compared to August of last year.
The IAR reported 7,060 home closings last month, which is down 6% compared to August of last year. That’s also about 4.5% fewer homes sold than in July 2024.
However, as mortgage rates continue to fall, sellers saw pending sales move 7% higher than in August 2023. The IAR reported 7,401 pending sales, most with prices of less than $250,000.
Though sales aren’t moving in a straight line, the overall housing supply has steadily increased to an average of 13,910 homes available in August. That’s the most in any month since January 2020, per the IAR.
The association’s president, Jennifer Parham, said in a news release that the high number of pending sales are signs that buyers with more limited budgets are getting into the market again.
“Mortgage rates are the lowest they’ve been since early 2023, and this year’s home prices peaked back in June,” Parham said. “More homebuyers who may have felt priced out of the market earlier this summer were able to negotiate successful deals heading into Labor Day.”
Parham also said the market is the most balanced it has been since 2019.
“Homeowners who’ve decided to move this year are still getting higher prices than ever before and still seeing their homes sell faster than 2018 or 2019,” Parham said. “But price growth has dropped below 4% this year compared to the 12%-14% increases we experienced in 2021 and 2022. Buyers have more options to choose from and more bargaining power when they decide to make an offer.”
The IAR said pending home sales on houses below $250,000 rose 9%. The median home price in Indiana remained flat from July at $265,000.