Indianapolis, IN Housing Market Report

The Indianapolis-Carmel-Anderson housing market is currently transitioning into a more balanced environment, moving away from the rapid appreciation seen in previous years. As of December 2025, the median home value stands at $224,192, representing a modest year-over-year increase of 0.99%. While the market remains competitive, the significant 17.37% surge in active inventory to 6,574 listings has provided buyers with more options than they have had in recent cycles. The sale-to-list ratio of 0.99 indicates that homes are selling very close to their asking prices, though the power dynamic is shifting slightly toward buyers as inventory accumulates.

Price trends over the last six months show a period of stabilization and minor fluctuations. After a slight dip through the autumn months, prices saw a modest recovery in December. This plateau suggests that the market has found a temporary ceiling, driven by higher inventory levels and a slower pace of sales. Homes are now spending an average of 56 days on the market, which is nearly a week longer than the same period last year. This increase in days on market reflects a more cautious buyer pool and a departure from the urgent bidding wars that previously defined the region.

Looking ahead, the Indianapolis market offers a compelling case for both long-term stability and affordability, particularly compared to national averages. For sellers, the increase in inventory means that property presentation and realistic pricing are now critical to securing a timely sale. For buyers, the combination of rising inventory and a cooling price trend provides a window of opportunity to negotiate more favorable terms. While the rental market remains strong with a 3.9% annual increase, the relatively low median home value continues to make homeownership an attractive alternative for those looking to build equity in a steady Midwestern hub.