Indiana home sales declined in February compared to the previous year, even as mortgage rates hit their lowest levels since mid-December, according to the Indiana Association of Realtors.

Statewide, 4,930 homes were sold last month-6% fewer than in February 2024. The drop comes despite improving mortgage rates, which encouraged buyer activity. New pending sales increased steadily throughout the month, surpassing 2,000 in the final week. However, the total number of pending contracts-6,016-remained 8% below last year’s figures.

Homebuyers benefited from stable prices and increased inventory. The median sale price edged up slightly from $250,000 in January to $251,000 in February. Meanwhile, the number of homes on the market reached its highest February level since 2020, with an average of 12,857 listings available daily on Indiana’s multiple listing services.

Sellers saw homes selling for slightly less than last year, with properties closing at 94.4% of their original listing price, compared to 95% in February 2024.

Among metros with more than 200 monthly sales, South Bend outperformed 2024 with 217 closings (8% year-over-year) at a relatively affordable median of $195,000.