Hoosier home sales begin to stabilize
While far from a full-fledged housing recovery, the Indiana Association of Realtors says home purchases over the past two months are cutting a year-over-year sales gap. The organization says Indiana home sales jumped 17% from January to February with nearly 4,900 homes sold statewide.
The realtor’s group says February sales were still 15% below the same period in 2022 but it revealed an improvement over the 30% drop seen in December.
“Home sales in 2023 are running just 20% below the first two months of 2022, the end of a record-setting real estate market before mortgage rates climbed past 4% on their way to 7% in October,” said Mark Fisher, CEO of the Indiana Association of REALTORS. “After falling through the end of last year, sales and listings continue to stabilize as buyers and sellers adjust to a more balanced market.”
The association says homebuyers are taking advantage of the higher inventory caused by cooling demand.
IAR President Lynn Wheeler warned a promising start to the year does not guarantee a full-blown real estate recovery even as buyers re-enter the market. She says 30-year mortgage rates ticked up to a four-week average of 6.4% through February.
“Homebuyers have more options and negotiating power in 2023, but with the tradeoff of higher lending rates than the historic lows of 2021,” Wheeler said. “Even with average housing costs 33% lower than the U.S., Hoosiers are still sensitive to rate changes impacting monthly mortgage payments.”
IAR says homebuyers are taking advantage of higher inventory and less competition, meaning sellers may not be getting their full asking price. The association says homes sold for just below 95% of their original list price last month, down from 99% in early 2022.
Indiana’s median home price also increased; from $215,000 in January to $230,000.