Indiana Housing Market: How Bad We Talking?

Buying a home in Indiana hasn't been easy for many, as home values in the Hoosier state are now up over 40% since 2020.

READ MORE: These Are the Best Months to Buy a House in Indiana

When my wife and I decided to return to Indiana in early 2024, the housing market was by far our greatest concern. We were in the process of selling our home in southern Kentucky and needed to find a place fast. It was certainly not easy. We both agreed that we would only rent a home as a last resort, as we loved having our own space in a rural area. Fortunately, we were blessed to find a house in rural Gibson County, but it did require a lot of remodel work before we could move.

I have several friends who also live in the Hoosier state that are still dreaming of becoming homeowners. While inventory seems to be less of a concern than it was back in 2020 and 2021, housing prices still seem to be souring along with interest rates. It's tough for a lot of folks, and I definitely empathize with anyone who is struggling to find a house in their budget. That said, there are some factors that you should be aware of in your home search, especially if you're looking to buy during summer 2024.

Get our free mobile app

According to Redfin, home prices in Indiana were up 5.9% compared to last year, selling for a median price of $271,900 in June. However, on average, the number of homes sold was down 12.9% year over year. Houses also seem to be staying on the market longer than they have over the past few years. The median amount of time a home spends on the market in Indiana as of June 2024 is now 19 days, an increase of about three days year-over-year.

One of the likely factors contributing to a decrease in sales and longer listing times is interest rates. According to The Mortage Reports, rates reached an all-time low in January 2021, clocking at just 2.65%. Now, rates are hovering around 6%, which has neither prospective home buyers nor current homeowners finding enough reason to move or refinance. However, the website added that experts widely agree the Federal Reserve will begin rate cuts in the latter half of 2024.

While housing costs and interest rates remain high in 2024, there is a slight bit of good news for potential buyers. Unlike in 2020-2021, when homes were being sold as fast as they were listed, sellers are probably much more likely to bargain now given the latest market trends. According to RedFin, only 27.5% of homes in Indiana sold above list price in June 2024, which is a 6.2% decrease over last year. Additionally, homes in the Hoosier state with price drops increased about 4.3% over last year.

So, is now the best time to buy a house? The answer to that question is likely to depend upon your own needs and current financial situation. Also, I'm just a country radio jock and have no business giving financial advice. However, I will add a word of encouragement to my fellow Zillow doomscrollers. No matter what home you buy, rent, or even stay in for a short time, you can make a home with a little effort. While you may have to wait a little longer for your dream home, you'll just appreciate it that much more when you get there. I know I certainly do.