The housing market is entering its busiest time of the year and despite rising mortgage rates, tight inventory may continue to be the big storyline. “Because we have such an overwhelming demand, so many people are still trying to get into homes,” said Compass of Indiana Founding Partner Greg Cooper, who believes rising rates may add fuel to the fire. “As rates go up, it’s kind of a flock to the inventory because now they want to beat the rates getting higher, so it’s driven even more people into the market.”
Cooper talked about the outlook for the housing market and issued a warning for homeowners on this weekend’s edition of Inside INdiana Business with Gerry Dick.
Indianapolis and much of Indiana remain a seller’s market.
According to data from Indianapolis-based F.C. Tucker Co., home prices in the metro area in January increased 14% compared to a year earlier.
There are also fewer homes on the market in the 16-county region. Tucker says already tight housing inventory decreased 12.4% in January.
Hancock County showed the greatest increase in pended home sales with 58% growth compared to January 2021.
As an example of how tight inventory is, Cooper said one of his recent listings generated 106 broker-confirmed showings and more than 75 walkups in the 28 hours the home was on the market. He said it for more than 30 percent above list price.
Earlier this year, Realtor.com ranked Indianapolis as the nation’s 4th best housing market positioned for growth in 2022.