Expert: Home Prices In Indiana Dipped More Than Expected In January

Source: Lance McMillan / Getty

INDIANAPOLIS — Mortgage rates held steady in January, but real estate experts say changes could be on the horizon.

Dan Brown, a realtor with FC Tucker, joined Daybreak for his monthly real estate rundown, breaking down what’s happening in the central Indiana housing market.

“January’s market report always reflects the end of the year, so the numbers are typically lower,” Brown said. “Sales were down 30% market-wide, which isn’t unusual, but the big question is whether they’ll rebound. Most experts believe they will.”

While sales dipped, home prices also took a hit. Brown says prices dropped about 3% to 4% last month —one of the more significant declines seen in recent months. But, looking at the bigger picture, home values actually increased about 5% over the past year, which is good news for sellers holding onto property value.

“The moderation in prices, along with steady interest rates, is also good for buyers,” Brown said. “We’re not seeing the sticker shock we had a couple of years ago.”

Inventory on the rise

As for housing inventory, Brown says the number of available homes is growing, and that’s a trend expected to continue.

“Interest rates went from a historic low to now settling in the high sixes or around 7%,” Brown said. “People are getting used to that. And as buyers adjust, they’re also selling homes—adding more inventory to the market.”

What’s driving the market?

When it comes to what’s fueling the current housing landscape, Brown says two key factors stand out: affordability and interest rates.

“This is an interest rate-driven market,” Brown explained. “Prices have gone up, rates have gone up, and that means insurance and property taxes have risen, too. Some buyers are seeing mortgage payments twice as high as they expected just five years ago.”

Despite the challenges, Brown says buyers are adjusting and keeping a close eye on rates.

“Even if they don’t understand every nuance, interest rates drive consumer behavior,” Brown said. “That’s why it’s important to sit down with experts and talk through the process.”

With rates expected to stay steady for the next year or two, Brown says stability could help both buyers and sellers make more informed decisions.

For more on the central Indiana housing market, check back next month for Brown’s latest insights on Daybreak.

Expert: Home Prices In Indiana Dipped More Than Expected In January was originally published on wibc.com