Sales of existing homes in Northwest Indiana between January and August are down when compared to the same period a year ago.
That’s according to the latest data from the Greater Northwest Indiana Association of Realtors, which covers Jasper, Lake, La Porte, Newton, Porter, Pulaski and Starke counties. Citing Indiana Association of Realtors data, GNIAR reported year-to-date closed sales in its service area through August totaled 7,385, down 2.7% from 7,587 when compared to the same time a year earlier.
Region sellers year-to-date on average have been receiving near-list price for their homes. GNIAR reports sellers received 98.1% of their list price, down 0.9% from 99% a year ago.
The statewide Realtors association said recent Federal Reserve action to curb inflation by raising its open market rate has made it more expensive for consumers to borrow money. The Indiana Association of Realtors estimates the average monthly payment on a 30-year, $200,000 mortgage has increased more than $400 a month since last fall.
“The Fed’s hawkish approach to reducing inflation is having the expected impact on buying power and housing demand, even though Indiana’s real estate market has been steadier than the nation’s,” said Mark Fisher, CEO of Indiana Association of Realtors.
In October 2021, a 30-year-fixed-rate mortgage was averaging 3.05% nationally, FreddieMac.com reported. Now the same mortgage is averaging 6.92%
Fisher said a drop in new listings also has impacted sales across the state. New listings in GNIAR’s service area year-to-date through August totaled 9,461, down 2.5% from 9,699 when compared to a year ago.
“But fewer listings also exacerbate a longer-term, decade-long decline in inventory that Realtors see as the number one threat to the health of Indiana’s housing market,” he said.
Closed home sales in the Region in August totaled 1,091, down 11.5% from 1,233 from August 2021.
Sellers received 97.2% of list price in August, down 2.6% from 99.8% of list price in August 2021. Limited inventory pushed up prices as the median sale price was $250,000, up 8.7% from $230,000 from a year ago.
The average sale price in August was $281,303, up 7.7% from $261,181 when compared to the same month a year ago.
