Indianapolis has one of the nation's hottest housing markets
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Indianapolis is one of the fastest-moving real estate markets in the nation.
Driving the news: Around 58.7% of Indianapolis-area homes for sale in July were snapped up in two weeks or less, according to Redfin data shared with Axios.
- Nationwide, roughly 41% of listings were marked pending, contingent or sold within that window, Redfin found.
The intrigue: Quick sales defy mortgage rates that are climbing toward 8% and causing sales to slump.
Between the lines: The dearth of homes for sale is driving much of the speed.
- Statewide, the average home sold after nine days on the market in August — which is one day slower than in June and July, yet lightning-quick by historical standards, per the Indiana Association of Realtors.
- About 10,000 homes were for sale on any given day in July and August, which is roughly half the 2019 for-sale listings.
What they're saying: "While inventory has improved over the summer, it's still exceptionally tight compared to 2018 or 2019," Lynn Wheeler, the Indiana Association of Realtors president, said in a recent market update.
- "Limited supply still gives sellers excellent odds of seeing their home sell relatively quickly and for a higher price than in 2021 or 2022."
Yes, but: Inventory is also low in cities where homes aren't selling as fast, so there are other factors at play.
- Indiana's median home price of $255,000 — far below the U.S. median of $421,000 — is attractive to out-of-state buyers, who can often afford to outbid local buyers while offering cash.
- Institutional investors buy a higher proportion of Indianapolis' housing stock than any other city, per John Burns Real Estate Consulting, which keeps deals flowing.
The bottom line: Despite the housing market craziness, it's still a pretty good time to be a seller in Indianapolis — unless you need to buy another place to live.