The housing market in Central and Northern Indianapolis remains competitive, but a shift in inventory and affordability trends is shaping the outlook for buyers and sellers alike. Nationally, we are seeing stark regional differences in supply and demand, and these trends are influencing our local real estate market in significant ways.
Let’s break down where home values are heading, how inventory is shifting, and what buyers and sellers should expect in the months ahead.
Home Prices Remain Strong in Central and Northern Indianapolis
Despite some softening in certain housing markets nationwide, home values in Central and Northern Indianapolis continue to rise, supported by low inventory, strong demand, and a steady local economy.
- Carmel – Median home price: $560,000 (up 6.1% YoY)
- Fishers – Median home price: $400,000 (up 4.8% YoY)
- Noblesville – Median home price: $365,000 (up 3.5% YoY)
- Westfield – Median home price: $500,000 (up 5.6% YoY)
- Indianapolis (North Side) – Median home price: $310,000 (up 6.2% YoY)
- Avon – Median home price: $285,000 (up 3.2% YoY)
- McCordsville – Median home price: $310,000 (up 4.0% YoY)
- Fortville – Median home price: $295,000 (up 3.7% YoY)
Unlike some Sunbelt states where home values are dropping due to oversupply, the Central Indiana housing market remains tight, meaning prices are still trending upward.
Why Isn’t Inventory Increasing Like in Other States?
The Wall Street Journal reports that inventory has surged above pre-pandemic levels in Texas, Florida, and Colorado—but not in the Midwest. In fact, 15 states, including Indiana, still have less than half the number of homes available compared to 2019.
Here’s why home supply is still constrained in Central and Northern Indianapolis:
✔️ Homeowners are still locked into low mortgage rates. Many people secured rates under 4% during the pandemic and are reluctant to sell and take on a 6%+ mortgage.
✔️ Strict zoning laws and high building costs limit new construction. While Texas and Florida have been building at record levels, Indiana hasn’t seen the same construction boom.
✔️ High demand keeps homes off the market. With a steady job market and continued population growth, homes are still selling quickly—especially in top school districts like Carmel, Westfield, and Fishers.
What This Means for Buyers and Sellers
For buyers, the lack of inventory means competition is still high, and you should act fast if you find a home that meets your needs. Be prepared for multiple-offer scenarios in desirable neighborhoods.
For sellers, home values remain strong, but pricing competitively is key. With mortgage rates still high, buyers are more sensitive to overpriced listings than they were during the pandemic housing frenzy.
Short-Term Impact of Trump's Tariffs on Home Values
The Wall Street Journal highlights one factor that could impact home values in Indiana in the short term—the new tariffs on building materials.
✔️ Lumber and steel prices are expected to rise, making new home construction more expensive.
✔️ Higher costs for builders could slow new home developments in the area.
✔️ With fewer new homes hitting the market, existing home prices could remain high due to continued demand.
However, the impact in Indiana will likely be less severe than in states like Texas or Florida, where new home construction is driving down prices.
Final Thoughts: What to Expect in 2025
Unlike states where housing markets are cooling due to oversupply, Central and Northern Indianapolis remain strong due to low inventory and steady demand.
✔️ Home values are expected to keep rising but at a more moderate pace.
✔️ Inventory will remain tight, meaning buyers will still face competition.
✔️ New tariffs could limit new construction, keeping resale home prices stable.
For anyone considering buying or selling, working with a local real estate expert is essential to navigating this competitive and evolving market.
If you're thinking about making a move in 2025, now is the time to start planning.
Tim Houterloot
