Indiana’s housing market posted its strongest first-half sales and listing totals since 2022, according to new data from the Indiana Association of Realtors, as lower mortgage rates helped offset rising home prices.
The association reports nearly 39,000 homes were sold statewide during the first six months of 2026, up 2.5% compared to the same period last year. New pending sales also increased 3%, while more than 54,000 homes were listed for sale, a 5% increase from 2025.
Home prices continued to climb. The statewide median sales price reached $275,000 through June, up 5% from a year ago, while June alone recorded a median sales price of $290,000.
Housing inventory also improved. On an average day this year, more than 15,400 homes were available for sale statewide, a 13% increase over last year. Buyers have taken slightly longer to make decisions, with homes spending about 20 days on the market before going under contract, compared to 17 days during the first half of 2025.
The association says lower mortgage rates have helped reduce the impact of higher home prices. The average 30-year mortgage rate has been about 6.25% this year, more than half a percentage point lower than in 2025.
Sales of homes priced between $250,000 and $750,000 gained market share during the first half of the year, while sales below $250,000 declined. The association says the trend suggests many buyers are existing homeowners using equity from a previous home purchase, while affordability continues to challenge many first-time buyers.
Despite improving inventory, the Indiana Association of REALTORS® says the state continues to face a long-term housing shortage. Although more homes are available than in recent years, inventory remains below pre-pandemic levels even as Indiana has added approximately 180,000 homeowner households since 2019.
Regionally, rural and suburban counties experienced the strongest growth in home sales. Counties anchored by mid-sized cities-including St. Joseph, Elkhart, Howard and Vigo counties-recorded the largest increase in median home prices, while remaining generally more affordable than the statewide average.
