The Indiana housing market in 2024 demonstrated resilience, with sales and listings showing steady growth despite economic fluctuations. While inventory levels improved, the supply remains historically tight, keeping home prices on an upward trajectory. Buyers and sellers had to navigate shifting market dynamics, including longer listing times and increased price adjustments. As we head into 2025, industry experts remain optimistic about continued market stabilization and opportunity. Lets take a more detailed at the numbers and the impact in Indiana.
The Indiana housing market showed resilience and adaptability in 2024, with home sales, inventory levels, and price trends shaping an evolving real estate landscape. Here’s a breakdown of the key takeaways and what they mean for buyers and sellers moving forward.
Steady Home Sales and Increased Listings
Statewide, home sales totaled 78,426 in 2024, marking an increase of approximately 300 closings from the previous year. While this growth may seem modest, it reflects a stable demand for housing despite fluctuating economic conditions.
New listings increased by 3% to 96,334, demonstrating that sellers are re-entering the market at a greater pace. However, it’s worth noting that 2023 and 2024 are the only two years in the past 20 years where annual listings fell below 100,000, highlighting a still-constrained housing supply.
Inventory Expansion and Impact on Pricing
The number of homes for sale saw a significant rise, with an average daily listing count of 13,153—16% higher than in 2023 and the highest level since 2019. Although inventory levels are improving, they remain 24% lower than five years ago. This historically tight supply has continued to push home prices upward.
The median sale price in 2024 increased by 4% to $255,000. This growth outpaced inflation, indicating sustained demand, particularly for homes priced above $250,000.
Market Dynamics: Homes Staying on the Market Longer
One key shift in 2024 was the slight lengthening of time homes spent on the market before going under contract. Homes moved from listing to pending sale in an average of 15 days, compared to 12 days in 2023. While this marks a slowdown, it’s still quicker than pre-pandemic levels, where homes averaged 19-20 days in 2018 and 2019.
Sellers also had to adjust expectations, as the final sale price in 2024 averaged less than 96% of the original listing price—slightly lower than in 2023. Additionally, by the end of the year, half of all listed homes experienced at least one price reduction before being sold.
Shifting Market Segments: Growth in Higher-Priced Homes
A notable trend was the divergence between price segments. The number of homes sold above $250,000 increased by 8%, while sales for homes below that price point declined by 7%. Similarly, new listings for properties over $250,000 grew by 12%, while those under that threshold decreased by 6%. This shift suggests that more sellers and buyers are focusing on mid-to-upper-tier homes, possibly due to changing affordability dynamics and interest rate influences.
December Data Confirms Positive Year-End Trends
Data from the MIBOR BLC® comparing December 2023 to December 2024 reinforced the market’s strength:
- The median sales price increased by 8.1% to $300,540.
- Closed sales saw an 8.1% rise, reaching 2,261 transactions.
- New listings remained steady, inching up by just 0.1% to 1,590.
In the MIBOR BLC® service area, 15 of 17 counties recorded price increases from a year earlier, with the annual median sales price reaching $301,475—a 4.0% gain over 2023.
Looking Ahead to 2025
MIBOR CEO Shelley Specchio expressed optimism, citing four consecutive months of year-over-year sales growth to close out 2024. Despite higher interest rates, buyers and sellers have adapted, showing increased willingness to negotiate and close deals. As we head into 2025, continued stabilization in mortgage rates, coupled with expanding inventory, could provide more opportunities for prospective homeowners.
For buyers, patience and preparation will be key in navigating an evolving market. For sellers, setting realistic price expectations and being open to negotiations will enhance success in securing deals. Whether buying or selling, staying informed about market trends will be essential for making strategic real estate decisions in 2025.
Tim Houterloot
