INDIANAPOLIS — Existing home sales across Indiana totaled 88,821 in 2022, according to annual data collected by the Indiana Association of REALTORS across the state’s eight MLS marketplaces. Sales ended 11% below 2021’s record high as mortgage rates for 30-year mortgages rose to more than 6% on average in the second half of the year.
U.S. home sales saw a sharper decline from 2021-2022, falling about 16% at the end of the year, according to estimates by the National Association of REALTORS (NAR).
Despite a slower market, Indiana homebuyers continued to face tight inventory, with new listings (102,764) down 5% from 2021. Although monthly inventory of homes for sale increased slightly year-over-year, monthly active listings were 25% below 2020 and half-year 2019 averages.
“Indiana housing construction in 2022 is a story of resilience against strong headwinds,” said Mark Fisher, CEO of the Indiana Association of REALTORS. “Sales were less than 2 percent below 2019 — a strong pre-COVID market — even as the Federal Reserve repeatedly hiked rates to fight inflation at a 40-year high. Rising interest rates added more than $400 to the monthly payment of a $200,000 30-year mortgage.”
Even with higher borrowing costs reducing aggregate demand (and homebuyer budgets), the median Indiana home price rose 12% from 2021-2022 to $235,000; the US median selling price rose 9.6% to $384,500. Hoosiers who sold a home received an annual average of 99% of their original listing price, and the median time from listing to pending (under contract) was flat from 2021.
“Even though national challenges have pushed Indiana into a more balanced market, low inventory still favors sellers,” Fisher added. “But living space remains more affordable here than in large parts of the country.”
With average mortgage rates falling seven weeks out of eight at the end of the year in response to encouraging consumer inflation data, Fisher expects Indiana real estate to continue to outpace national trends.
“Limited supply could slow down our recovery,” he warned. “Realtors want to help more Hoosiers on their journey to home ownership – with 2022 in the rearview mirror, we need more available homes at all price levels to rebuild a healthy housing market.”
Every Indiana region saw monthly sales decline by at least 25% in December from 2021 to end the year, with homebuyers in north-central Indiana showing the most holiday cheer (-25%).
Home sales in west-central Indiana (Terre Haute and Vincennes, east through Putnam County) continued on a year-long streak of beating statewide sales trends: Sales of 2,282 homes were just 4% down from 2021.
Columbus/Bartholomew County also withstood a significant slowdown beginning in 2021, with sales down 5%.
Among other regions, Northeast and Southwest Indiana each ended 2022 with a relatively modest decline of 8% from 2021; Allen County (Fort Wayne) was the leading urban center with total sales (5,466) down 7% in ’21.
Central Indiana (MIBOR) ended the year slightly behind the statewide annual trend, down 12% after outperforming the state in sales in 2020 and 2021.
Central Indiana also saw a slightly higher median price increase than the state (12%); Other markets with faster-growing real estate values included Greater Fort Wayne (13% increase in median price), LaPorte (13%) and the university-dominated communities of Bloomington and Lafayette (14%).
Conversely, homebuyers in Columbus/Bartholomew County (7%), Elkhart (7%), Southeast Indiana (7%), Greater Evansville (4%), and Northwest Indiana (6%) enjoyed slower price growth than the state average.