The central Indiana residential real estate market continued to slump in September as sales of single-family homes fell dramatically amid higher mortgage rates.
Closed sales in the 16-county area sank from 3,727 in September 2021 to 3,216 last month—a year-over-year decrease of 13.7%, according to the latest data from the MIBOR Realtor Association. Sales fell 8.6% from August to September.
On a year-to-date basis, closed sales are down 4.8%, to 27,776, compared with 29,171 in the first nine months of 2021.
Despite the slower pace of sales, prices are still higher than they were a year ago. The median price for homes sold in the area last month was $285,000, up 11.8% from the same month a year ago. However, the median price in September was the same as in August and down from $300,000 in June.
In other indications of a slowdown, area homeowners in September, on average, got 98.7% of their asking prices, down from 99.2% the previous month and 100.6% a year earlier.
The average number of days houses spent on the market was 28, up from 22 days in August and 18 days in September 2021.
The active inventory in September was up 61.8% on a year-over-year basis, to 4,357 houses. The inventory rose 8.8% from the previous month.
New listings decreased 13.7% on a year-over-year basis, to 3,407, and were down 10.1% from the previous month.
The average U.S. interest rate for a 30-year mortgage has risen from 3.14% a year ago to 7.08% as of Thursday, according to Freddie Mac. That’s the highest average rate since 2002.
In Marion County—the most active market in central Indiana—closed sales in September were down 16.1% on a year-over-year basis, to 1,176.
The median sales price in the county rose 6.8%, to $235,000, from September 2021, but was down 2.9% from the previous month. New listings fell 15.1%, to 1,358. The active inventory of available single-family homes jumped 42% from a year ago, to 1,685.
Other area counties
In Hamilton County, year-over-year sales dropped 22.6%, to 547, compared to the same month a year earlier.
The median sales price in the county rose 11%, to $410,000, compared with September 2001. The inventory of houses jumped 125% from a year ago, to 630. Homes spent 25 days on the market, on average, and fetched 99.9% of their asking price.
In Hendricks County, sales fell 12.8% from the same month a year ago, to 253, and the median sales price increased 17.8%, to $329,900.
In Johnson County, sales dropped 15.6%, to 244, and the median sales price rose 9.9%, to $300,000.
Sales fell 1.5% in Madison County last month, to 199. The median sales price increased 9.1%, to $173,000.
Hancock County sales were up 6.3%, to 168, and the median price rose 23.8%, to $325,000.
Sales in Boone County dropped 12.9%, to 128, while the median price of a home remained almost unchanged, at $349,900.
Morgan County sales sank 14.1%, to 116, and the median sales price climbed 25.4%, to $291,000.
Shelby County saw 52 closed home sales last month, down from 62 in September 2021. The median price rose 38.6%%, to $242,500.
Sales of previously occupied U.S. homes fell in September for the eighth month in a row. The National Association of Realtors said existing home sales fell 1.5% from August to September, to a seasonally adjusted annual rate of 4.71 million.
Sales fell 23.8% from September last year, and are now at the slowest annual pace since September 2012, excluding the steep slowdown in sales that occurred in May 2020 near the start of the pandemic.