Indianapolis Housing Market for August 2023

A GENERAL OVERVIEW

Let's start with an overview of what happened in the local housing market in August:

1. MEDIAN SALES PRICE: In August, the median sales price was $295,000. While this was down slightly from the previous month, it marked a 5.4% increase year over year, showing the market's resilience and steady growth.

2. CUMULATIVE DAYS ON MARKET: The median days on the market remained impressively low at just 10 days. This is a significant change from the past when it was above 100 days, showcasing the speed at which homes are selling.

3. MONTH SUPPLY OF INVENTORY: The month supply of inventory, which indicates the balance between supply and demand, stood at 1.5 months in August. Although it was similar to July, it's up from 1.2 months in August 2022.

4. PERCENT OF LIST PRICE RECEIVED: Sellers continue to receive strong offers, with the percent of list price received at 98.8%. While this indicates a slight decrease from previous months, it's essential to remember that market conditions can vary by location and price point.

METRICS TRACKING MARKET SHIFTS

We've been closely monitoring specific metrics to track shifts in the market:

1. ACTIVE INVENTORY: Active inventory remains a challenge, with fewer than 5,000 homes available. This shortage of inventory is a driving force behind the current market conditions.

2. TOTAL CLOSED SALES: In August, there were just under 3,100 closed sales, a slight increase from the previous month. However, this figure was down by 18.6% year over year due to the decreasing inventory.

3. NEW LISTINGS: The number of new listings in August was 3,700, up from July but down about 10% compared to the previous year. This shows that while more homes are coming on the market, the pace isn't keeping up with demand.

INTEREST RATES

One of the most common questions we receive is about interest rates. As of the latest data, interest rates are as follows:

• 30-YEAR FIXED RATE: 7.18%
• 15-YEAR FIXED RATE: 6.51%

Interest rates have been fluctuating slightly over the past year, but they've mostly remained in the high sixes to low sevens. It's crucial to remember that various factors influence interest rates, so they can change over time.

Check out our full Monthly Market Update from Vice President, Bob Woerner and CEO, Hannah Perkey below: