INDIANAPOLIS — New data indicates that the housing market could be cooling after two years of high demand. In June, new home sales fell 8% to a two-year low of $590,000, per the Census Bureau.
Local experts say that this is a sign that the market could be returning to normal.
"We're seeing supply rise, demand come down. We're seeing houses sit on the market longer. We're finally seeing price reductions for the first time in a long time," Sara Coers, Associate director of IU's Center for Real Estate Studies said.
Coers said that for the last two years interest rates and housing supply have been low, creating a sellers market, but that's starting to change.
She said that rising inflation and interest rate hikes are lowering demand. She thinks that we could see the market slow significantly in the coming months.
"I think we're not going to slow down completely, but we're going to come off the madness a little," Coers said.
During the pandemic, houses were flying off the market. Deals would close above asking, sight unseen, only hours after being listed.
But local realtor Jordan Moody said that's not the case anymore. Moody just sold a home in Carmel, and that sale was an indicator of what is becoming more typical in the market.
"We got a strong offer that was good for the seller, so they wanted to accept, but it wasn't 100 offers or anything absolutely crazy," Moody said.
Coers said that sellers are going to have to learn to adjust their expectations.
"They're not going to get the absolute top dollar, they're not going to get it in a day, and they're maybe going to have to give things back," Coers said.
If you're thinking of selling, Coers says now's the time. The sellers market is starting to normalize, many people are listing, and it's slowing the rate that the prices are increasing. For buyers, she recommends waiting, if you can. Things are starting to improve, and greener grass may be right around the corner.
"I think if you are in the $300,000 and under range, I think activity will remain very strong, very tight, as we hope more homes correct down into that range," Coers said.
Moody and Coers agree that there are a lot of buyers out there who are tired of the market and looking for any opportunity for relief. Many are tired of waiting, and just want to buy now. Moody doesn't think that's a bad idea.
"Buyers - you have way more inventory and opportunity than you've had in two years. So I'm hopeful, I think it'll be a good market this year," Moody said.
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