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Closed home sales jump 6% ahead of July 2023 at a $264,000 median price; pending sales slow in anticipation of even better conditions ahead

(INDIANAPOLIS, Ind.) Closed home sales totaled 7,405 across Indiana in July, 7% above June and 6% ahead of 2023 according to the Indiana Association of REALTORS® (IAR). Homebuyers capitalized on lower mortgage rates, more homes for sale than any other point in 2024 and easing price pressure, as the state median sale price dropped from $273,000 in June to $264,000 last month.

8,989 homes were also listed for sale in July, 5% higher than July 2023. The overall statewide inventory of homes for sale rose for the fourth straight month to 12,900 average daily listings, 27% above 2023.

New pending sales (7,025) slipped 5% from June to July, and these sales took a median of ten days – consistent with June but two days longer than 2023. IAR president Jennifer Parham noted that the improving market had homebuyers split between making their move and waiting to see how far interest rates might fall late in the summer.

“Home sales that closed in July represent a burst of buying activity earlier in the summer, with more homes on the market and mortgage rates dropping below 7% in June,” Parham said. “But with rates now at their lowest level in more than a year and prices coming down, there are definitely buyers taking their time and anticipating an even better market to come.”

With more homes listed for sale, steady pending sales and the time on market reflecting a more deliberate pace, Parham noted that buyers are already benefiting from a less competitive climate.

“Our median sale and listing price both dropped in July, with the sale price dipping below 97% of the listing price – lower than last summer,” she said. “We’re also seeing more homes with price reductions as buyers gain bargaining power.

“These trends make a real difference in budgets,” Parham added. “The monthly payment on a median-priced home in Indiana dropped nearly a hundred dollars in just the past month because of lower pricing and better rates.”

Improved affordability drove sales last month, as pending and closed sales under $250,000 outperformed sales above $250,000 from June through July, reversing recent trends that showed stronger sales activity among higher-priced homes.

“Inventory is still tight by pre-2020 standards and sellers are still receiving higher prices than last year,” Parham finished. “But the market is certainly more balanced than it’s been in the past four years – and we expect more homebuyers to take advantage as we close out the summer.” 

Regional & Local Highlights:

56 of Indiana’s 92 counties saw closed home sales finish ahead of July 2023. At the regional level, several mid-sized metropolitan areas led year-over-year growth with gains over 20% from last year – Columbus (117 sales, +30% vs. July ’23), Kokomo (113 sales, +23%), Elkhart (183 sales, +21%) and Michigan City (107 sales, +20%) fall into this category. All these metros also featured median sale prices below the state’s $264,000 in July.

Among the state’s five largest metros, South Bend leads the way with 363 closings, 18% above last July at a median price of $236,500. (South Bend also claimed a top five spot among the REALTOR.com/Wall Street Journal’s Summer Housing Market Rankings.)

Fort Wayne earned the #1 spot on the same list, though sales took a small step back in July, with 502 sales (-1% below July ’23) at a $250,000 median price; the region is still running well ahead of statewide trends over the past twelve months.

The 11-county Indianapolis metro saw 2,893 July sales, up 3% year-over-year at a $305,000 median (again second to the Bloomington metro’s $312,500 for highest monthly sale price).

At the county level, notable July numbers include: 

• Marion County totaled 1,150 closings in July, matching its metro year-over-year trend (+3%) at a median sale price of $255,000.
• Hamilton County again claimed the second-highest monthly sales total at 616,+9% versus July 2023 at a median price of $440,000.
• Lake County had the third-most home sales in the state (473) in July but fell 3% below 2023 at a median sale price of $250,000.
• Allen County (443 sales, down 1% vs. 2023) continues to see sales ahead of 2023 year to date despite July’s dip in closings.
• Along the Ohio River, Clark County continues to outpace statewide trends, as its 178 sales were 13% over 2023 at a $274,000 median price (10% above July ’23).
• As noted above, St. Joseph County (363 closings, 18% above last July) and Elkhart County (183 sales, +12%) lead the northern tier of urbanized counties. 

Check out IAR’s full July Housing Report for more details.

Explore State, Local and Regional Real Estate Trends:

The Indiana Association of REALTORS® (IAR) makes MLS housing data available at the Indiana Housing Hub (https://data.indianarealtors.com); access reports for the state, metropolitan regions, REALTOR® association territories, individual counties and more.