With 2022 officially here, many current and potential homeowners are wondering what to expect from the Indiana real estate market this year. While no one can say for sure what the New Year holds, we can make some pretty educated guesses based on past Indiana real estate trends and recommendations from experts, including and beyond the team here at CENTURY 21 Scheetz.
2021 was a banner year for Indiana's real estate market, and the good times are likely to keep rolling this year as well. Indiana is currently a great place to invest in real estate, and the newfound optimism inspired by the state's rapidly improving economy points to a strong demand for new homes and homes for sale in Indiana.
Why are Real Estate Market Projections Important?
As in most industries, it is essential to stay ahead of the curve. In real estate, it's no different. Being able to predict where the market is headed is priceless and should form the basis of evaluating the financial feasibility of every real estate investment you make.
By analyzing several data points and trends and making informed deductions on how various market factors might play out in the future, you can get a good idea of where to invest and why. Of course, it isn't an exact science, and that’s why most people choose to work with a trusted Indiana real estate agent. Either way, making reasonable projections and ensuring you have all of the information you need can give you an advantage when buying or selling property in Indiana.
What are the Top Trends Impacting Indiana’s Real Estate Market?
2022 is projected to be a genuinely remarkable seller's year in Indiana. Market outlook reports predict a double-digit percentage point increase in home prices, and many industry experts expect similar trends as those observed in much of 2021 to continue in 2022. For instance, the increased total sales activity, higher benchmark home prices, low market inventory, and low mortgage rates. Though speculative, the current positive housing market outlook in Indiana points at 2022 as a red-hot year for the real estate market. Many savvy investors are eyeing this trend and are looking to capitalize on the growth the Indiana real estate market is experiencing.
Here's a breakdown of the top reasons why the Indiana real estate market is a "market to watch" this year:
1. High Job Growth Rate
A report released by the Indiana Department of Workforce Development last year predicted a possible surge in new job opportunities in 2022. According to their research, fields such as health care and professional business services are poised for significant job growth, with many companies looking to set up shop in this Midwest region. Currently, Indiana is projected to experience a 1.5 percent job growth rate, bringing the total number of employed Hoosiers to 2,112,700. This is particularly good news for Indiana's homeowners and renters alike, as more jobs mean more people have the money to spend on housing. Substantial house price gains are a likely outcome of this job growth in 2022, and vacancy rates are expected to drop significantly. If you're thinking of listing your home for sale in Indiana, or buying an Indiana home currently for sale, now is a good time to do so.
2. An Affordable Place to Own Real Estate
In Indiana, the cost of owning a home is lower compared to many other states. A recent study by GoBankingRates ranks Indiana as one of the most affordable places to buy a home. The study considered median home prices, property taxes, and mortgage rates. In addition to this low cost for homeownership, Indiana has a lot to offer homeowners. A variety of highly rated suburbs, cities like Indianapolis that are particularly attractive to millennials, and several beautiful cities for outdoor lovers, like Bloomington, Cicero, and Noblesville, which are endowed with gorgeous natural landscapes and idyllic Indiana lake homes, make Indiana one of the best places to live in the United States. Don't be discouraged by lower real estate values now. The market projections for Indiana homes for sale are promising, and healthy buyer demand still exists as of 2022. By doing your homework and carefully analyzing all the factors involved, you can make sound investment decisions that could pay off in the long run and call the wonderful place that is Indiana home.
3. High Real Estate Appreciation Rate
Are you looking to invest in Indiana real estate? You may be interested to learn that the appreciation rate in the state is relatively high. In addition, Indiana has become quite attractive to out-of-state investors, a trend that started before the pandemic and has only accelerated since. This makes now a great time to dive into the market! Whether you're looking for a primary residence or an investment property, you're sure to find a great deal in Indiana.
Fueled by changing dynamics in the Indiana real estate market and across the country, especially factors such as the COVID-19 pandemic, the Indiana real estate market is likely to have a strong 2022. So what are you waiting for? Contact a CENTURY 21 Scheetz agent today to discuss your real estate needs.