Indianapolis homes are getting more expensive
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Indiana home prices show no signs of slowing, despite mortgage rates hovering near 7%, per the latest data from the Federal Housing Finance Agency.
Why it matters: That's good news if you own your home, and tough if you're a would-be buyer in Indy's hot housing market.
Zoom in: Hoosier homes saw an 8% increase since this time last year, the 15th-highest increase in the nation, according to the FHFA. Home prices have increased 1.3% from last quarter.
- In the Indianapolis metro, home prices have seen a 5.2% year-over-year increase, but have dropped 2.2% since the last quarter.
- Homes in Indy in April sold for a median price of $245,000, Redfin reports.
Zoom out: Nationwide, prices are up 6.6% from last year, per the FHFA.
- Many Midwestern states sit near the top of the year-over-year rankings with Wisconsin (10%), Illinois (9.4%), Ohio (8%) and Michigan (7.8%) all cracking the top 20.
- Washington D.C. saw the nation's only annual drop at -1.5%.
Stunning stat: The FHFA analysis found that Indianapolis home prices are up a staggering 248% since the first quarter of 1991. Nationwide, prices are 315% higher.
What's happening: Low housing inventory is contributing to the high prices, said FHFA's Anju Vajja, in a statement.
- You can thank rate lock for that.
State of play: Home buying power in the area decreased by about 43% from 1970 to 2022, per Axios' Rahul Mukherjee's analysis of a new RealtyHop study.
- Homebuying power is the ratio of annual income versus the average house price in 1970 (when boomers started buying starter homes) compared to 2022.
- In 1970, the average Indianapolis-area home cost $14,800, with a median income of $10,754. By 2022, the city's home values climbed to $184,600, but median income only reached $75,991.
What we're watching: Zillow named Indy one of the hottest housing markets of 2024, citing strong demand, steady home values, a growing number of homeowners and job growth.
- Indianapolis was No. 4 on the list of the nation's top 10 markets, up 13 spots from 2023.