INDIANAPOLIS — Owning a home is the American dream. Buying a home, though, has become more expensive.
According to experts, there are a few reasons that buying a home in Indiana is more obtainable.
"I think that we are starting to see a little bit of a shift away from a really strong seller's market, a little more tilted towards buyers,” Lauren Hewiitt, a Realtor and broker for FC Tucker, said.
That’s just one of a few reasons that home sales are increasing.
Scott and Ashley White are first-time home buyers. They had been casually looking to buy a home for the last few years, but earlier this year, they knew they were done paying rent.
They felt buying in Indiana would be a smart move financially.
"We decided to move back here a couple of years ago,” Scott White said. “One, because of family. The other reason is because as we expect the climate to shift, this is an area that is supposed to stay in the green so it seems like a safe long-term bet."
Real Estate Company FC Tucker says home sales in 2024 are up nearly 7% compared to this same time in 2023.
However, the National Association of Realtors data shows that the number of first-time buyers is down.
In 2023, those buyers made up 32% of the market shares now, it's just 24%, the lowest it's been since 1981.
"We had to use both of our incomes, like even now with the mortgage, if something were to happen and one of us lost our job or something, it would become very tight,” Ashley White said.
With a median sale price of $295,000, Indiana is one of the most affordable states to buy a home. Experts say that's why Indiana is still seeing homes being sold regularly.
"It's pretty affordable here so it's pretty attractive,” Doug McCoy, with the IU Center for Real Estate Studies, said. “Especially around the Indianapolis area, but really throughout the state we have a pretty strong economy, and we are getting some good wage increases.”
Experts also say Indiana has low property taxes compared to other states. With interest rates coming down, realtors expect more people to buy. But couples like the Whites say having two incomes helped them get the kind of home they wanted.
"Even now, we couldn't afford this home on a single salary,” Scott White said. “So that dream I think is dead."
While the number of first-time home buyers has decreased, the age of those buyers has increased. The median first-time buyer age increased to 38 years old this year from 35.
Homebuyers keeping a close eye on mortgage rates are getting a bit of encouraging news.
The average rate on a 30-year mortgage eased again this week, slipping to its lowest level since late October. The rate dropped to 6.7%, from 6.8% last week. A year ago, the rate was just over 7%.
The average rate on a 30-year mortgage has been mostly rising since sliding to a two-year low in late September. U.S. home sales are on track for their worst year since 1995.
