With 2023 in the history books, the Indiana Association of Realtors has issued a wrap-up report of the year for the Hoosier state.

Statewide sales hit 76,262 for the year, 14% below 2022 as mortgage rates averaged 6.81%, nearly a point-and-a-half higher than ‘22 and more than double the historically low rates of 2021; rates did drop nine straight weeks through the end of December to close the year around 6.61%, which is good news for homebuyers heading into 2024.

Rising rates also caused homeowners who might have considered listing their homes for sale to put off potential moving plans to protect their pre-2022 mortgages and avoid selling into a slowing market; annual listings (90,820) dropped 12% behind 2022 and finished below 100,000 for the first time in more than twenty years.

Slower sales still meant the overall inventory of homes for sale across Indiana increased to 10,976 average daily listings – still nearly 40% lower than 2019, barely a third of 2014 levels as the state still struggles with a long-term housing shortage.

Historically tight supply kept Indiana’s median home sale price rising, up 4% to $242,500 as the majority of homes sold in 2023 went from listing to pending in less than two weeks. While sales dropped 14% in Indiana, we again outperformed national trends as National Association of Realtors’ estimates suggest an 18% year-over-year decline in existing home sales across the U.S.