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The central Indiana residential real estate market slumped significantly in 2022, with closed sales of single-family homes falling 10.2% from the previous year.
Closed sales in the 16-county area sank from 39,539 in 2021 to 35,539 in 2022, according to the latest data from the MIBOR Realtor Association.
Amid the slowdown in sales, median prices of sold homes jumped 12.4%, from $249,000 to $280,000.
The market ended the year with a weak December, with closed sales falling a whopping 28.8%, from 3,392 in December 2021 to 2,414 last month. Sales have now fallen on a year-over-year basis for the past 11 months and have seen double-digit percentage decreases for six straight months.
Sales fell 4.3% from November to October.
Potential buyers are facing fewer and fewer choices. New listings decreased 23.3% on a year-over-year basis, to 1,706, and were down 27% from the previous month. The active inventory in December was down 12.3% from November, to 3,816. New listings have fallen for six months in a row on a year-over-year basis, which could be a bright spot for home shoppers, said MIBOR chief executive Shelley Specchio.
“If new listings remain weak, it’s unlikely that we will see much growth in inventories, which should help keep home prices stable,” she said in written remarks.
The median price for homes sold in the area last month was $280,000, up 9.8% from December 2021. The median price in December was up 0.8% from November.
Area homeowners in December, on average, got 97.7% of their asking prices, down from 97.8% the previous month and 99.9% a year earlier.
The average number of days houses spent on the market was 46 last month, up from 35 days in November and 24 days in December 2021.
Marion County
In Marion County—the most active market in central Indiana—closed sales in 2022 fell 13.8% from the previous year, to 13,401.
The median sales price in the county rose 12.9% last year, to $237,000.
Other area counties
In Hamilton County, sales dropped 14.6%, from 7,072 in 2021 to 6,036 in 2022. The median sales price in the county rose 14.8%, to $424,900.
In Hendricks County, sales fell 9.7% in 2022, to 3,066, and the median sales price increased 16.9%, to $330,000.
In Johnson County, sales decreased 13.2%, to 2,661, and the median sales price rose 10.8%, to $297,000.
Sales fell 4% in Madison County last year, to 2,011. The median sales price increased 10.1%, to $175,000.
Hancock County sales bucked the trend by rising 4.7% in 2022, to 1,798. The median price for a home jumped 19.8%, to $323,585.
Sales in Boone County dropped 2.5% last year, to 1,341, while the median price of a home rose 7.9%, to $376,085.
Morgan County sales increased 5.1%, to 1,204, and the median sales price climbed 18.9%, to $270,500
Shelby County saw an 8.8% increase in closed home sales in 2022, to 617. The median price rose 17.9%%, to $213,000.
Statewide numbers
The Indiana Association of Realtors reported an 11% drop in sales of existing homes statewide in 2022, to 88,821, after a record-setting year in 2021. That compared to an estimated decline of 16% nationally.
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This would be a lot more meaningful if data was presented over a 5 year span…. instead of comparing to the wildest single year in real estate in 15 years
Some places or “hot” areas are still doing well. If your property is in good condition, there is still a high demand. I am involved with several investors and these areas are still getting very good prices.
Does this decline have anything to do with demographic trends??
Even our donut counties are not growing at the pace that they used to.
It has to do with incomes. Indiana’s median income has not kept up with the national median. People at the Indiana median income can’t afford the median priced house.