February home sales reflect wariness from buyers
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Caution was the overarching tone for Indiana homebuyers in February as last month saw 6% fewer home purchases than February 2024.
The dip comes as mortgage rates are slowly but consistently falling and despite an increasing supply of homes on the market. The Indiana Association of Realtors shows there were about 12,850 homes listed for sale in the state on any given day last month, which is 20% higher than the same time in 2024.
Kim Ward is the IAR’s president and managing broker of North Eastern Group Realty in Fort Wayne. She says the data points to first-time homebuyers and those with budgets below the state’s $250,000 median price being careful and waiting for mortgage rates to come down further before wading into the market.
“February’s real estate market shows that homebuyers with tighter budgets are still waiting for more improvement on mortgage rates,” Ward said in a release. “Closed sales below $250,000 dropped 15% last month while sales above that level grew 5%.”
She added inventory increasing is a positive sign. “Every drop in rates provides more breathing room on monthly payments, but buyers who are on the fence should consider that the market will only get more competitive as we head towards summer.”
In total, 4,930 home sales closed in February, per the IAR, and buyers are paying 94% of asking prices on average.
IAR data shows Hamilton, Hancock and Johnson counties in central Indiana continue to see growth year-over-year in sales. But the biggest gainer was the Michigan City area where home sales in February were almost 50% higher than they were a year ago.
February’s news follow a January which saw no change compared to January of 2024.