Real Estate Rundown: February’s housing market report

Indianapolis, Indiana – Despite high loan rates, the home market in central Indiana is beginning to recover.
Dan Brown joined Daybreak for the monthly Real Estate Rundown and is a Realtor with FC Tucker. He talked about the most recent information from the February home market report.

“February real estate market results were stronger than the previous February in almost every category, even in the face of higher mortgage rates. The market was robust last month, with sales increasing, new listings up sharply and homes selling much more quickly than this time last year. We are expecting a very active spring market in central Indiana,” Brown said.

According to the report:

• Available housing inventory increased by 20.7% compared to February 2023.
• Homes sold three days, or 5.9%, faster than this time last year.
• Compared to February 2023, the average home sale price for the 16-county central Indiana region increased 4.5% to $319,007.
• Pended home sales increased 0.6% compared to this time last year.

The monthly report from the Indiana Realtors Association states that homebuying activity above average month-to-month trends and that new pending sales increased by 11%.

“New listings, those that have been on the market less than 30 days, jumped up 20%. Which is huge and that’s indicative of a spring market. That means we’re having a robust normal spring market. That’s when it should happen. However, those listings sold 50% faster than the month before. So, if buyers are, you know, wondering ‘why isn’t there more out there to look at?’ It’s because it’s sold quickly,” Brown said.

In Indiana, according to realtors, inventory is still a problem. The nation is experiencing a housing scarcity.

The majority of Indiana lenders, according to the Consumer Finance Protection Bureau, provide mortgage rates at or below 7.625%.

In response to the question, “Is it better to buy now or wait for interest rates to drop?” Before selling? “It depends—depends on what your goals are,” Brown remarked.

“If you’re looking to lower your payment, you might wind up getting into a bidding war by summer,” Brown continued. Thus, you might choose to purchase right away if you have or need some leverage. You will have more negotiating power even if the rate is higher.

Remember that as those rates decline as summer approaches, individuals will begin to make purchases. This implies that they will begin to sell, that more homes will be built, and that the situation will worsen. In light of the lower rates, we will thus search for a somewhat more lively and competitive market as summer approaches.

You might want to hold off on selling your house till that market if you know it will sell quickly and is a great house. You’ll probably do better that way. However, if your house has, like most people’s, one or two problems, is on a busy street, requires paint, or anything else, you might want to sell it right away. You will have a better market because there is currently less selection available.