INDIANAPOLIS (WISH) — The central Indiana housing market is starting to spring forward, despite high interest rates.

Dan Brown is a Realtor with FC Tucker and joined Daybreak for the monthly Real Estate Rundown. He discussed the most recent data in the housing market report from February.

“February real estate market results were stronger than the previous February in almost every category, even in the face of higher mortgage rates. The market was robust last month, with sales increasing, new listings up sharply and homes selling much more quickly than this time last year. We are expecting a very active spring market in central Indiana,” Brown said.

According to the report:

• Available housing inventory increased by 20.7% compared to February 2023.
• Homes sold three days, or 5.9%, faster than this time last year.
• Compared to February 2023, the average home sale price for the 16-county central Indiana region increased 4.5% to $319,007. 
• Pended home sales increased 0.6% compared to this time last year.

According to the Indiana Realtors Association’s monthly report, new pending sales grew 11% and homebuying activity outpaced typical month-to-month trends.

“New listings, those that have been on the market less than 30 days, jumped up 20%. Which is huge and that’s indicative of a spring market. That means we’re having a robust normal spring market. That’s when it should happen. However, those listings sold 50% faster than the month before. So, if buyers are, you know, wondering ‘why isn’t there more out there to look at?’ It’s because it’s sold quickly,” Brown said.

Realtors say inventory is still an issue in Indiana. There is a national housing shortage.

According to the Consumer Finance Protection Bureau most lenders in Indiana are offering mortgage rates at or below 7.625%.

When asked, ‘Is it better to wait for interest rates to drop before buying? Before selling?’ Brown said, “It depends — depends on what your goals are.”

Brown went on to say, “If you’re looking to lower your payment, you might wind up getting in a bidding war by summer. So if you’ve got, if you need some leverage, you might want to buy now. Even with a higher rate, you’re going to be more in a position to negotiate.

When we get into summer, remember as those rates come down, people are going to start buying. That means they’re going to start selling, there’s going to be more homes and it snowballs. So we’re going to look for a much more competitive and vibrant market as we get closer to summer with the lower rates.

If you’ve got a home to sell and you know that it’s going to sell quickly — and you know, it’s a great home — you may want to wait for that market because you’ll probably do better. But if you’ve got a home — like most people, one or two issues at the house, it’s on a busy street, it needs paint, whatever — you might want to sell that now. Because right now there’s so little out there to choose from, you’re going to get a better market.”