Sales of existing homes in Indy area slumped 18% in 2023

Closed sales of existing homes in central Indiana slumped sharply in 2023 as mortgage rates escalated well into the fourth quarter, according to the year-end data from the MIBOR Realtor Association.

Existing-home sales in the 16-county area dropped from 35,876 in 2022 to 29,483 in 2023, a decline of 17.8%.

The rate for a 30-year mortgage was 6.48% in the first week of January 2023, according to Freddie Mac. The rate peaked at 7.79% in the week ending Oct. 26. It dropped back to 6.62% by the end of the year.

Despite signs that mortgage rates had peaked and will continue to relax in 2024, area home sales in December tracked with results from the rest of the year. Existing home sales for the month sagged to 2,055 from 2,472 in December 2022, a 16.9% year-over-year fall.

Closed sales in the 16-county Indy area have fallen for 23 straight months on a year-over-year basis.

The existing supply of available homes in the area appears to be a factor. The active inventory of homes plummeted from 5,039 in December 2022 to just 2,926 last month, a 41.5% tumble.

There were 1,558 new listings in December, down 11.7% from 1,764 listings that came on line in December 2022.

MIBOR CEO Shelley Specchio saw reason for hope in the most recent mortgage rate numbers.

“The high mortgage rates that have been holding back sellers and buyers throughout 2023 noticeably declined in the second half of December,” Specchio said in a media release. “This is a welcome adjustment which will hopefully open the market to additional consumers with more buying options come this spring.”

Meanwhile, the median sale price for a home in the area inched up 3.6% between 2022 ($280,000) to 2023 ($290,000). The median sales price for a house in the area in December of this year ($278,000) dipped 0.7% from December 2022 ($280,000).

On average, sellers received 98.5% of their asking price in 2023, down from 100.1%% in 2022. In December 2023, however, buyers were receiving just 97.4% of their asking price, down from 97.7% in December 2022.

The two most active markets: Marion and Hamilton counties

In Marion County, closed sales fell from 13,509 in 2022 to 11,046 in 2023, a drop of 18.2%. The median sales price in the county rose 1.7%, from $236,000 in 2022 to $239,000 in 2023.

Closed sales in December hit 795, a 7.6% reduction from December 2022. The median sales price in the county rose 1.8% from a year ago, to $229,9000.

In Hamilton County, closed sales fell from 6,192 in 2022 to 5,311 in 2023, a drop of 14.2%. The median sales price in the county rose 6.3%, from $421,212 in 2022 to $447,885 in 2023.

Closed sales in December hit 335, a 27% reduction from December 2022. The median sales price in the county rose 3.6%% from a year ago, to $439,995.

Other area counties

In Hendricks County, closed sales fell from 2,811 in 2022 to 2,278 in 2023, a drop of 19%. The median sales price in the county rose 0.9%, from $329,000 in 2022 to $331,869 in 2023.

In Johnson County, closed sales fell from 2,669 in 2022 to 2,159 in 2023, a drop of 19.1%. The median sales price in the county rose 1%, from $297,000 in 2022 to $300,000 in 2023.

In Madison County, closed sales fell from 2,013 in 2022 to 1,770 in 2023, a drop of 12.1%. The median sales price in the county rose 11.4%, from $175,000 in 2022 to $194,950 in 2023.

In Boone County, closed sales fell from 1,346 in 2022 to 1,220 in 2023, a drop of 9.4%. The median sales price in the county rose 1.1%, from $376,000 in 2022 to $379,990 in 2023.

In Hancock County, closed sales fell from 1,801 in 2022 to 1,368 in 2023, a drop of 24%. The median sales price in the county rose 0.6%, from $322,995 in 2022 to $325,000 in 2023.

In Morgan County, closed sales fell from 1,205 in 2022 to 904 in 2023, a drop of 25%. The median sales price in the county slipped 0.4%, from $271,000 in 2022 to $270,00 in 2023.

In Shelby County, closed sales fell from 622 in 2022 474 in 2023, a drop of 23.8%. The median sales price in the county rose 4.7%, from $215,000 in 2022 to $225,000 in 2023.