The central Indiana residential real estate market remained mired in a slump in November, with sales of single-family homes slowing considerably amid higher mortgage rates.
Closed sales in the 16-county area sank from 3,488 in November 2021 to 2,485 last month—a year-over-year decrease of 28.8%, according to the latest data from the MIBOR Realtor Association. Sales fell 9.8% from October to November.
Sales have now fallen on a year-over-year basis for the past 10 months and have seen double-digit percentage decreases for five straight months.
On a year-to-date basis, closed sales are down 8.6%, to 33,072, compared with 36,174 in the first 11 months of 2021.
Despite the slower pace of sales, prices for sold houses are still significantly higher than they were a year ago. The median price for homes sold in the area last month was $277,000, up 10.2% from the same month a year ago. However, the median price in November was down 1.1% from October.
In another indications of a slowdown, area homeowners in November, on average, got 97.9% of their asking prices, down from 98.3% the previous month and 100% a year earlier.
The average number of days houses spent on the market was 36, up from 30 days in October and 20 days in November 2021.
The active inventory in November was up 78% on a year-over-year basis, to 4,345 houses. The inventory dropped 3.4% from the previous month.
New listings decreased 24.8% on a year-over-year basis, to 2,326, and were down 24% from the previous month.
The average U.S. interest rate for a 30-year mortgage has risen from 3.1% a year ago to 6.33% as of Thursday, according to Freddie Mac. The rate had climbed above 7% in November.
In Marion County—the most active market in central Indiana—closed sales in November were down 36.9% on a year-over-year basis, to 896.
The median sales price in the county rose 5.6%, to $227,000, from November 2021, but was down 3% from the previous month. New listings fell 25.1%, to 948. The active inventory of available single-family homes jumped 68% from a year ago, to 1,749.
Other area counties
In Hamilton County, year-over-year sales dropped 30.7%, to 436, compared to the same month a year earlier.
The median sales price in the county rose 10.9%, to $419,000, compared with November 2021. The inventory of houses jumped 227% from a year ago, to 622. Homes spent 37 days on the market, on average, and fetched 99.1% of their asking price.
In Hendricks County, sales fell 11.6% from the same month a year ago, to 221, and the median sales price increased 9%, to $338,000.
In Johnson County, sales dropped 29.4%, to 178, and the median sales price fell 1.6%, to $283,500.
Sales fell 7.2% in Madison County last month, to 155. The median sales price remained the same as a year ago, at $165,000.
Hancock County sales were down 14.2%, to 121, and the median price rose 25%, to $343,684.
Sales in Boone County dropped 18.8%, to 91, while the median price of a home soared 26.5%, to $389,995.
Morgan County sales sank 24.6%, to 86, and the median sales price climbed 22.1%, to $305,250.
Shelby County saw 34 closed home sales last month, down from 50 in November 2021. The median price rose 19.1%%, to $220,250.