Indiana's Housing Market Thrives with Record Sales Amid Low Mortgage Rates

Indiana's housing market is exhibiting dynamic growth as it races towards 2024 with impressive sales figures and new listings. According to the Indiana Association of REALTORS® (IAR), October saw 7,177 properties sold, marking a 4% year-on-year increase. This surge is complemented by a notable rise in new listings, which reached 9,517, an increase of 6% from October the previous year.

Despite experiencing a competitive market, the median price for homes stayed stable at $270,000, remaining consistent since September while still reflecting a 6% increase over 2024 prices. Through the first ten months of 2025, the total number of home closings was up by 2%, coupled with new listings showing a 6% increase compared to the same period last year.

Interestingly, October marked a turning point with average mortgage rates reaching the lowest point recorded in the last twelve months and an abundant supply of properties available for sale. With 18,975 listings reported on average each day, homebuyers had more options to choose from, enhancing market engagement. Nevertheless, pending sales saw a slight decline to 6,795, which is 1% lower than the same month in 2024.

According to Kim Ward, the 2025 IAR president and managing broker of North Eastern Group Realty based in Fort Wayne, the improvement in affordability since Labor Day has provided more opportunities for buyers. She noted that lower mortgage rates, alongside adjusted listing and sale prices, have created a healthier buying atmosphere across various price categories.

As the market enters the final quarter, it is common for potential buyers to start considering their options for 2026. New contracts slowed down in October, as evidenced by the increase in days from listing to pending sale, which rose to an average of 25 days—three days longer than in 2024. This has prompted sellers to recalibrate their expectations amid a more balanced market scenario, leading to a decline in the monthly median sale price to under 95% of the original list price. More than half of the homes that listed in October saw price reductions.

Despite these market adjustments, Indiana's median sale price maintains a 5% increase year-to-date at $267,000. A recent IAR analysis highlighted that homeowners who have remained in their residences for at least six years have seen their median equity surpass a remarkable six figures statewide, reflecting long-term investment growth in the housing sector.

Today's first-time homebuyers face the challenge of higher prices but should recognize that the rising home values bolster a robust housing market. With increased options and enhanced bargaining power, they can find homes that fit within their budget. Moreover, this trend supports their goal of building wealth and securing their financial future.

In summary, Indiana's real estate landscape paints a picture of resilience and dynamic adaptation, even in the face of changing economic conditions. With mortgage rates at an all-time low, an increase in listings, and supportive equity growth, now is an opportune moment for potential buyers to explore their housing options.