Indiana Housing Market Predictions 2023
As the housing market climbed to new heights over the past few years, 2022 showed the first signs of the market cooling down. Although still in an upward trend from before 2020, recent projections show competition starting to decrease, interest rates increasing, and lots of potential buyers and sellers in the Indiana real estate market anticipating what’s to come.
First, if you’d like to know more about buying or selling a home in Indiana, contact the central Indiana real estate agents at CENTURY 21 Scheetz today.
According to the Metropolitan Indianapolis Board of Realtors, the Indiana real estate market experienced a 12% decrease in home sales this past summer compared to last year. The main cause for this change is the increase in interest rates and inflated housing prices. As interest rates continue to rise and sellers continue to expect high prices, the demand from buyers is far below what we’ve experienced recently.
So What Does This Mean?
If you’re looking to purchase a home in Indiana in 2023, there are a few key factors that you should consider. First, as the demand for homes decreases, the competition has followed (and is expected to continue doing so). This brings opportunity for buyers to have more say in the deal. Buyers have less of a chance to enter dreaded bidding wars and will be less likely to have to sacrifice home inspections and other useful tools that go into purchasing a home in favor of closing the deal. Generally speaking, the shift in the market will lean towards buyers.
However, there will also be disadvantages. First, this decrease in demand stems from an increase in interest rates so if you’re purchasing during this time, you may have to accept a mortgage with an interest rate beyond what you expected. Be extra cautious when negotiating and be sure to use a trustful real estate agent to ensure you get the best deal possible. Also, while there is a decrease in demand, the demand hasn’t completely changed. Expect to still face some competition when trying to find the home of your dreams.
The hot market we have become used to has been in the favor of sellers for quite some time now. As the market shifts, it will bring challenges to those looking to sell their homes in 2023. As demand slowly drops and homes aren’t as quickly to sell, there are a few key factors sellers need to consider. First, as home sales dropped, so did new construction homes despite the cost of materials going down. With more inventory available, buyers do not wish to wait. Buyers also have more options so they will expect a bit more from the seller – expect home inspections to become more common again and prepare for any necessary repairs.
These trends do not mean that 2023 is not the time to sell your home. Ultimately, that is a decision that you have to make based on your personal experience. However, there are some advantages that come with decreased buyer demand. First, while demand has decreased, it is still considerably higher than in years prior to 2020. There are still plenty of buyers who are looking to purchase a home. With the decrease in competition, buyers will have more time and opportunity to find the home they truly want which will decrease the chances of deals falling through and the headache that comes with it.