2023 Indianapolis Housing Market Forecast
While housing markets across the nation continue their post-2020 cooling, experts have high hopes for the Indianapolis housing market in the New Year. While home sales across the state of Indiana have declined 12% this past year, they have remained strong compared to national declines in home sales at more than 25% (Indiana Association of Realtors). Despite a limited inventory, higher interest rates, and fewer buyers entering the market in November 2022, Indiana is still a strong choice for investors in the New Year.
With a 7% increase in the median price of homes from last year, home values in Indiana are stable and even rising as experts anticipate a strong year for the Indianapolis housing market in 2023. While it’s still a seller’s market, with lower inventory meaning more competition, higher prices, and quicker sales, there is an expectation that inventory will increase to meet the demand in the coming year.
Another good sign for folks investing in Indianapolis real estate is the appreciation we’ve seen over the last few years. During the last twelve months, Indianapolis’ real estate appreciation rate was 15.86% (NeighborhoodScout). More good news, Zillow predicts home values in Indianapolis will continue to rise as much as 2% this year.
Indianapolis continues to be a great place to live..
One of the key benefits of our market is its strong landscape for cash-flow rental properties. The unique qualities of our great state as a business and sports hub, along with the low cost of living and family-friendly perks make our State a strong and consistent rental /housing location. With increases in remote and hybrid work opportunities as well as a general population increase, we are seeing strong demand for housing in the Indianapolis metro area.
While we have some data that shows Indiana’s market strength in the short term, we also have data supporting its long-term success. Over the past ten years, Indiana has had a strong record of cumulative appreciate rates that put it in the nation’s top 30% of real estate investments. This longitudinal data suggests that the success real estate investors have seen over the last decade in the Indianapolis market is likely to continue.
Overall, the new year will continue to show promise for investors in our area. CPL Investments is eager to continue to serve our great State by investing in our communities. Reach out today to see how we can support you in reaching your real estate investment goals!