Indiana Housing Market: Is Spring 2026 the Time to Buy?
Indianapolis and central Indiana are seeing a shift in the housing market, with mortgage rates falling to four-year lows and inventory beginning to rise. As spring approaches, prospective homebuyers may find more opportunities and better bargains than in recent years.
Mortgage Rates Dip Below 6%
The average 30-year mortgage rate is currently just under 6%, marking the lowest level since 2022. This decrease in rates could be a significant incentive for buyers who have been waiting for more affordable financing options.
Inventory on the Rise, Days on Market Increasing
Good news for buyers: housing inventory in central Indiana is up approximately 18% compared to this time last year. However, homes are now taking longer to sell, averaging 69 days on the market. This suggests a cooling market and more room for negotiation.
Price Points in Central Indiana
In January, the median sales price across 17 central Indiana counties was $300,000, according to data from the MIBOR Realtor Association. New construction homes command a higher median price of $390,000.
What Can a Monthly Payment Look Like?
Let’s break down a potential monthly payment. For a $300,000 home with a 10% down payment ($30,000), the loan amount would be $270,000. At a 5.98% interest rate on a 30-year mortgage, the principal and interest payment would be around $1,625 per month. Adding property taxes, mortgage insurance, and homeowners insurance, the total estimated monthly payment falls between $2,125 and $2,200.
Buyer Preferences are Evolving
MIBOR researchers are noting a growing preference among buyers for walkable neighborhoods with mixed-use property types. This suggests a desire for convenience and community, potentially driving up demand – and prices – in those areas.
Is Indianapolis Still a “Hot Spot”?
Despite the shifting market dynamics, Indianapolis was recently named a housing hot spot by the National Association of Realtors. This indicates continued demand and potential for appreciation, even as the market normalizes.
Johnson County Market Remains Balanced
The housing market in Johnson County continues to be favorable for both buyers and sellers, despite ongoing challenges. This suggests a more stable and balanced market compared to some other areas.
Frequently Asked Questions
- What is the current median home price in central Indiana? The median sales price across 17 counties was $300,000 in January.
- How long are homes staying on the market? Currently, homes are spending an average of 69 days on the market.
- Are mortgage rates expected to change? Although current rates are low, future fluctuations are possible. It’s best to consult with a mortgage professional for the latest forecasts.
Pro Tip: Obtain pre-approved for a mortgage before you start seriously house hunting. This will give you a clear understanding of your budget and make your offers more competitive.
Ready to explore your options? Contact a local real estate agent today to discuss your specific needs and find the perfect home.
