The Indiana Association of Realtors has released statewide housing market data from January, finding a solid start to 2025 despite 30-year mortgage rates running about 15 basis points higher than the same period a year ago:

Closed home sales totaled 4,394 for January, 1% above 2024; January pending sales jumped 19% from December to hit 5,567 but fell 6% below last year.

Indiana’s statewide median home price rose 6% year-over-year to $250,000 in January.

6,155 homes were listed for sale last month, 2% above 2024; overall, 13,619 homes were available for sale on an average day – 16% ahead of 2024 and the highest January inventory since 2020.

Homes went from listing to pending sale in 37 days in January, up from 27 days in 2024.

Despite a slower pace and more options for buyers, home sellers negotiated 94.4% of their original list price, about the same as January ’24 (94.3%).

January’s market continued to show the effect of elevated mortgage rates, especially on Hoosiers looking to buy or sell a home below the statewide median price. While monthly pending sales fell 6% year-over-year overall, pending sales below $250,000 dropped 12% while new contracts above that level edged into positive territory.

All net growth in new listings versus 2024 also came among properties priced above $250,000.

While acknowledging the impact of rates on affordability, Ward noted that Indiana home prices continue to trend well below the U.S.: In 2024, Indiana’s median home price was in 2024 was $255,000 compared to more than $400,000 nationally

Mortgage rates have fallen three straight weeks from January 19th through February 9th, according to the Freddie Mac Primary Mortgage Survey, and there are a few signs of activity picking up: Statewide weekly inventory has tightened since late November, with fewer price reductions among properties on the market.

Looking more closely at regional trends:

Among metropolitan areas, closed home sales showed the most positive year-over-year growth in Columbus (54 January sales, up 20% versus 2024), South Bend (179 sales, +17%) followed by Northwest Indiana (460 sales) and Evansville (269 sales), both up 16%.

Among metro areas with more than 50 closings in January, Bloomington ($299,500), Indianapolis ($295,000) and Lafayette ($273,000) were the most expensive regional housing markets last month.

Bloomington and Lafayette also had the most significant gains in housing supply in January: Bloomington saw 41% growth in inventory (427 average daily listings) year-over-year along with 134 new listings (+17% year-over-year); Lafayette inventory grew 42% from 2024 to 253 average daily listings in January with 162 new listings (+38%).

Michigan City/LaPorte had the most significant year-over-year gain in new listings (104) in January, up 41% from 2024.

The Indianapolis metro area saw 1,610 closings (+2% year-over-year) at a median price of $295,000 (+4%) with 2,252 new listings (+9% over January 2024).