2024 Real Estate Market Recap for Indianapolis and Surrounding Areas
As 2024 comes to a close, let’s take a look back at the trends that shaped the real estate market in Indianapolis and the surrounding areas. From rising home prices to fluctuating inventory levels, this year brought unique challenges and opportunities for buyers, sellers, and investors alike. Here’s a recap of what we saw in the 16-county region covered by MIBOR (Metropolitan Indianapolis Board of REALTORS®).
Steady Growth in Home Prices
The Indianapolis housing market continued its upward trajectory in 2024, with the median sales price increasing throughout the year:
January: $280,000, up 1.9% from January 2023.
November: $304,100, up 8.41% since January 2024
These price increases were driven by strong buyer demand, limited housing supply, and a competitive market, particularly in the mid-range price points.
Fewer Closed Sales Amid High Demand
While home prices rose, closed sales declined compared to 2023, reflecting the challenges posed by affordability and rising interest rates.
Despite the decline in sales volume, homes that hit the market remained competitive, with properties selling for around 98.8% to 98.9% of their asking price on average.
Inventory and New Listings
The inventory of homes for sale saw a modest increase in 2024, giving buyers more options but not quite enough to ease the affordability pressures entirely:
These shifts indicate a slightly more balanced market compared to the highly competitive conditions of prior years, but the supply of homes still falls short of demand, especially in affordable price ranges.
Key Challenges: Affordability and Interest Rates
Affordability remained a top concern for buyers in 2024. Rising home prices, coupled with higher mortgage rates, created significant barriers, particularly for first-time buyers. Buyers had to stretch their budgets further, and many were drawn to entry-level and mid-level homes that became increasingly competitive. Sellers, on the other hand, faced heightened buyer expectations and needed to ensure their homes were priced strategically and presented well to stand out.
What This Means for 2025
As we head into 2025, we expect these trends to continue influencing the market:
Home prices will likely maintain a steady rise, albeit at a slower pace.
Inventory levels could increase further, offering more opportunities for buyers.
Mortgage rates and affordability will remain pivotal factors, shaping how quickly buyers can enter the market.
Whether you’re looking to buy, sell, or invest, understanding these market dynamics is crucial to making informed decisions. Stay tuned for more updates as we dive into 2025’s real estate market and the opportunities it holds.
Need Help Navigating the Market?
If you’re thinking about buying or selling in 2025, let’s connect! I’m here to help you make the most of your real estate journey.