Indianapolis homebuyers gain the upper hand
Add Axios as your preferred source to
see more of our stories on Google.
Homebuyers hold an edge in Indianapolis and across the nation — so long as you can cover the bigger tab.
The big picture: There are nearly 500,000 more sellers than buyers in the U.S. housing market, Redfin estimates based on April figures.
Why it matters: That's the widest gap on record — and a big reversal from just a few years ago, when buyers were desperate to find a place to live, sending prices into the stratosphere, Axios' Emily Peck and Sami Sparber report.
By the numbers: There are 33.7% more sellers than buyers nationally. At no other point since Redfin began tracking in 2013 have sellers outnumbered buyers by such a large percentage.
- A year ago, sellers outnumbered buyers by 6.5%, and two years ago, buyers outnumbered sellers.
Zoom in: The Indy metro had nearly 1,500 more sellers than buyers, a 21% difference, signaling a home buyer's market.
- Indianapolis also ranks fifth overall when tracking metros with the biggest year-over-year increases in pending home sales.
Context: Redfin counted sellers as the number of active listings in a given area and created a model to estimate the total buyers.
Where it stands: The one-two punch of still-soaring home prices and mortgage rates is making it hard for buyers, especially first-timers, to find a place they can afford despite the shift.
- Add to that the extreme economic uncertainty of 2025. Tariff news, layoff fears and, for many federal workers, layoff realities, are tamping down buyer demand.
Yes, but: For home sellers "the mortgage rate lock-in effect is easing," per Redfin. "For most people, it's not realistic to stay put forever; job changes, return-to-office mandates and divorce force people to move."
- Elevated mortgage rates are becoming the norm. "The idea of taking on a higher mortgage rate also isn't as shocking as it was when rates first skyrocketed in 2022."
Between the lines: Buying a home remains out of reach for most Americans, as the National Association of Realtors pointed out in a recent report.
- The median home price sold in the U.S. in the first three months of this year was $417,000, per federal data — 33% more than during the same period in 2019, before the housing market went haywire, outpacing inflation and incomes.
- Indy's median home sale price was $255,000 as of April per Redfin, a 4.9% increase when compared to the previous year.
- The household income required to afford a median home in the Indianapolis-Carmel-Anderson metro has also increased nearly 4% since last year.
What to watch: Historically, when sellers outnumber buyers, prices drop. And in some markets, listings have already started falling.
- Redfin believes prices will dip 1% by the end of the year (not exactly a huge discount, to be sure).
The bottom line: "The balance of power in the U.S. housing market has shifted toward buyers, but a lot of sellers have yet to see or accept the writing on the wall," said Redfin senior economist Asad Khan in the report.
Go deeper: Zillow taps Indy as one of 2025's hottest housing markets