January 2025 Housing Market Report

January 2025 Housing Market Report: Central Indiana Real Estate Trends

As we step into the new year, the housing market in central Indiana continues to show signs of growth and resilience. Let’s take a closer look at the key trends from December 2024 to see how the market performed and what it means for buyers and sellers.

Median Sales Price: A Strong Year-End Close

In December 2024, the median sales price for a single-family home in central Indiana reached $300,000, marking an impressive 8.6 percent increase over December 2023. Month-over-month, the median price saw a modest 0.2 percent increase, reflecting steady growth in home values as the year closed.

Sales Activity: Strong Demand Continues

• Closed sales were up 10.3 percent year-over-year, showing strong buyer demand even during the holiday season.
• Pending sales also experienced a slight 0.5 percent increase, suggesting continued activity moving into 2025.
• On average, listings received 97.8 percent of the asking price, a slight improvement from 97.5 percent in December 2023.

Additionally, 13.5 percent of sales closed above the list price, indicating that competitive offers are still a factor in certain areas, though slightly less so than earlier in the year.

New Listings and Inventory: Opportunities for Buyers

• New listings were up 2.7 percent compared to December 2023, providing more options for buyers entering the market.
• The median days on market increased slightly to 24 days, up from 21 days last year, suggesting buyers now have a bit more breathing room to make decisions.

At the end of December, the active inventory stood at 4,926 homes, a 13.3 percent increase year-over-year. However, compared to the previous month, inventory decreased by 12.7 percent, reflecting typical seasonal trends. The market currently has a 2-month supply of inventory, offering a balanced environment for both buyers and sellers.

What This Means for You

• For Buyers: With new listings on the rise and a slight increase in days on market, you may find more opportunities to explore and negotiate. However, strong sales activity and rising home values mean acting quickly on well-priced homes is still key.
• For Sellers: December’s numbers indicate that demand remains strong, even during the traditionally slower winter months. With home prices continuing to climb, now could be a great time to list your property and take advantage of motivated buyers.

Looking Ahead to 2025

As we kick off the new year, the central Indiana housing market is positioned for continued growth. Whether you're planning to buy, sell, or invest, staying informed about market trends is crucial to making the best decisions for your goals.

Have questions about how these trends impact you? Let’s connect! Whether you’re thinking about buying your first home, upgrading, or selling, we're here to help you navigate the market with confidence.

Contact us today to discuss your real estate goals for 2025!