Indiana home sales take a step back in June as buyers look for relief on mortgage rates

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Jul 12, 2024, 09:15 ET

INDIANAPOLIS, July 12, 2024 /PRNewswire/ -- Statewide home sales totaled 6,898 in June, falling 7% from May and also finishing 14% behind 2023 according to the Indiana Association of REALTORS® (IAR). New listings for the month (8,896) also dropped 5% below 2023. Through the first half of 2024, Indiana's 36,610 home sales are only 2% below 2023 despite higher mortgage rates.

New listings are up 4% year-to-date, and June offered 24% more homes for sale versus 2023 at 11,870 average daily listings. But even with higher housing inventory, Indiana's median sale price rose to $273,000.

Local Indiana housing data is available at https://data.indianarealtors.com.

IAR president Jennifer Parham said affordability concerns have made homebuyers cautious without sending them to the sidelines altogether as inventory and the outlook for mortgage lending improve.

"June closings were based on contracts mostly negotiated in May, when mortgage rates were well above 7%," Parham said. "Rates dropped every week in June and we're seeing growing confidence that the Federal Reserve will cut interest rates in September."

Parham noted a few other Indiana market trends favoring homebuyers:

There are more homes for sale statewide than any time since December.

With homes staying on the market longer (ten days from listing to pending sale in June versus six days in 2023), sellers are adjusting: Indiana's median list price dropped in June and the number of listings with price reductions rose above 40% of total homes for sale.

June's median sale price represented 97% of listing price, down from 98% last June, suggesting more leverage for buyers.

Parham added a few words of advice on home prices: "There's no denying that property values are rising," she said. "Residential inventory is still historically tight and as Indiana grows, so does demand for housing.

"But remember that the median sale price is only based on homes that happened to close last month; we saw sales above $350,000 rise from May as fewer homebuyers with higher budgets had a larger share of the market.

"This doesn't mean there aren't homes available at other price points," finished Parham, also the managing broker of Lighthouse Realty in Merrillville. "Nearly 4,000 homes were listed for less than $250,000 in June, and especially as rates improve determined buyers with professional support can still find options within their means."

SOURCE Indiana Association of REALTORS