March home sales rebound to 2022 levels across Indiana as homebuyers continue their return to the market

Closed sales and new listings jump 30%+ from February to March; Indiana's inventory of homes for sale drops to a ten-month low  

INDIANAPOLIS, April 12, 2023 /PRNewswire/ -- Indiana home sales continued their 2023 recovery in March as a statewide total of 6,643 closings fell just 72 properties (1%) shy of 2022. Both monthly sales and new listings increased more than 30% from February, although the state's daily average of homes listed for sale dropped near 9,200 as homebuying activity continued to accelerate in 2023.

Indiana's median days-on-market from listing to a pending contract dropped a full week as demand increased from February to March, from 23 to 16 days. The median sale price also increased modestly to $235,000 (from $230,000 in February), remaining 5% above March '22 according to data collected from the state's eight Multiple Listing Services by the Indiana Association of REALTORS® (IAR).

"Homebuyers continue to come off the sidelines in 2023 despite higher mortgage rates," said IAR president Lynn Wheeler. "Sales have recovered at a faster pace than new listings – local markets vary, but we've certainly seen homes selling faster as REALTORS® help buyers and sellers navigate a more competitive climate."

Wheeler noted that while recent sales momentum has impacted inventory, statewide average listings remain more than 60% higher than March 2022 or 2021.

"Buyers still have more options and are contending with a slower rate of price growth than the last two springs, even though our housing supply challenges aren't going away," she said.

While the typical home sold faster and at a higher price in March, there were other signs of a more balanced market for homebuyers: On average, homes sold for 96% of asking price, compared to 100% of listing price last March and 97% across the past five years. Nearly 10% of March listings also had at least one price decrease (higher than the year-to-date trend) as sellers adjusted expectations.

March also marked the one-year anniversary of the Federal Reserve's first of nine consecutive interest rate increases. IAR CEO Mark Fisher explained that elevated mortgage rates are impacting buyers and sellers despite recovering home sales in 2023.

"Current homeowners with mortgage rates locked in at less than 4% are certainly more hesitant to list their home and look for a new one with rates over 6%," said Fisher. "Even with a strong March for new listings, we still need sustained progress on inventory to relieve pressure on the market – especially for first-time buyers."

Fisher added that with mortgage rates trending down in March and pending sales surpassing 7,200 for the month, the sales outlook for April is solid: "The latest data points to an active real estate market as we look ahead to summer."

IAR's March 2023 Market Report summarizes monthly trends on existing home sales, price changes, listings and total inventory. Learn more at www.IndianaRealtors.com.

SOURCE Indiana Association of REALTORS