As we step into the promise of a new year, the real estate landscape in Central Indiana remains at a crossroads of both anticipation for change and uncertainty that change is really possible. The past few years have brought economic shifts and global events that have greatly impacted the housing market, and if you’re a prospective homebuyer, seller, or investor, you’re still left wondering – what will 2024 really look like? While the future remains uncertain, we do have a few ideas that may help you better understand the home sales market ahead.

A Closer Look at the Data

Economists are still interpreting what is to come in the market, but a look at the data suggests that the market as a whole is genuinely on the brink of transforming itself into a more positive space. There are several reasons for this sunny outlook. First, borrowing costs have likely reached their peak and have now started to decrease. In fact, most analysts suggest that they will only ease a bit more as the year progresses. A reduction in borrowing rates can only spell good news.

One of the biggest issues in Central Indiana has little to do with borrowing costs, though. For decades, housing construction in the area has been lagging, despite the increase in population. Recovery in terms of interest rates is not likely to make up for those lost years where underbuilding was occurring amid an increased property demand. That deficit is as high as 13% in some counties around the metro area, according to one study. Fortunately, though, even this issue is finally being addressed. The number of building permits is slowly increasing, and most analysts suggest those rates are on track to resolve the issue in the next four years.

Beyond the stronger mortgage rates and some progress on the permitting issue, though, there are other reasons to feel good about the numbers. Home prices in the greater Indianapolis area average out to be nearly 20% less than the national average of $385,000. It makes sense, then, that this is a market where buyers are going to be interested in making a purchase in the near future. Even the National Association of Realtors believes recovery is on the horizon, suggesting there may be as much as a 13.5% increase in existing home sales and a 19% increase in new home sales by the time the year ends.

What It Might Mean For You and I

As we look ahead toward the coming months, it’s time to start bringing some positivity to the Greater Indianapolis home sales market. Demand for housing will continue to stay strong, yet prices will be a bit more moderate than they are across the nation. Combine that with the fact that mortgage rates are decreasing, and 2024 begins to look like a great year if you’re hoping to buy a home in the area. Connect with us to support building achievable housing in the area and make homeownership a reality for many more.