March 2025 Housing Market Update

As we transition into the spring market, February’s housing data for Central Indiana reveals key insights for buyers, sellers, and investors. Let’s break down the latest trends and what they mean for you.

Home Prices & Sales Activity

The median sales price for a single-family home in Central Indiana reached $297,900—a 6.4% increase from February 2024 and a 2.6% increase from January 2025. This upward trend highlights the continued strength of home values in the region.

However, closed sales were down 2.3% year-over-year, and pending sales dipped by 1.3%, suggesting that while demand remains strong, factors such as affordability and inventory challenges may be influencing buyer activity.

Market Competitiveness

The market remained competitive, with the typical listing receiving 97.8% of the asking price, slightly higher than 97.6% last February. However, fewer homes closed above the list price—13.0% compared to 14.9% last year—indicating that while demand is still present, buyers may have slightly more negotiation power.

Inventory & Days on Market

One of the most notable shifts in February’s market was the 8.8% decline in new listings compared to last year. This decrease in fresh inventory could lead to increased competition among buyers in the coming months.

The median days on market rose to 37 days, up from 25 in February 2024, suggesting homes are taking longer to sell than they did a year ago. However, the active inventory at the end of the month was 4,086—an 18.1% increase from last year, providing buyers with more options. The 2.2-month supply of inventory still indicates a seller-favored market but is trending toward a more balanced environment.

What This Means for You

• For Buyers: With home prices rising but days on market increasing, this could be a great time to find a home without as much competition. Locking in a home now before the spring market heats up may be a strategic move.
• For Sellers: Demand remains steady, but pricing competitively and presenting your home well will be key. With fewer new listings coming onto the market, now is a great opportunity to stand out and attract motivated buyers.
• For Investors: The continued appreciation in home values signals long-term investment potential. With inventory increasing, it may be a good time to secure rental properties or investment homes before buyer competition picks up.

If you’re thinking about buying or selling this year, let’s discuss your goals and create a strategy to navigate the evolving market.  Contact us today to get started!