INDIANAPOLIS (WISH) —  May saw one of the strongest sales months for real estate in Indiana since last year, with more than 4,000 homes for sale.  

Dan Brown is a realtor with FC Tucker. He joined Daybreak on Tuesday for the monthly Real Estate Rundown, where he discussed the most recent data in FC Tucker’s housing market report for May.

“The roller coaster is being driven by the interest rates. The modulation that we see…you know, rates normally change half a point in a year and now they’re changing a half a percentage point in a month. Everybody’s watching them, both buyers and sellers, because it’s driving their affordability to both buy and sell,” Brown said. “They got under 7% last week. What that’s done is that’s increased prices, in fact, to a record high.”

According to FC Tucker’s report, Indiana’s median home price is at an all-time high of over $310,000, and up $15,000 in just May.

As for inventory, total homes for sale crested over 4,000 for the first time since last year, up 10% just last month and up 20% from May of 2023.

Improved selection gave buyers more to look at, according to Brown, but increased sales kept the days on the market steady, around 30 days on average.

Brown singled out an interesting data point: Indiana averages around 3,000 homes monthly going under contract, but in May more than 1,000 did not close. That is 1/3 of the transactions that started with an accepted contract and fell apart without closing.

He says that figure has been high for the past several months and has never been this high before, usually averaging 20% or less. 

Why? Brown believes buyers and sellers have vastly different expectations, usually centered on inspection terms and repairs.

Watch the full interview above for May’s Real Estate Rundown.