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2021: What to Expect in the Indiana Real Estate Market
January 18, 2021

2021: What to Expect in the Indiana Real Estate Market

by The CE Shop Team

Indiana’s 2021 Real Estate Market Forecast

Indiana was hit hard by the pandemic early on and has made a remarkable recovery, posting some of the highest median sale price increases and homes sold in the country this year. Real estate activity traditionally slows down throughout the winter, but because of the pandemic, home is top of mind for Hoosier homeowners. Some are looking to upgrade as needs have changed to support remote working and learning while others may need to downsize due to unemployment. Regardless, there will be plenty of activity in the housing market this upcoming year. 

2021 Indiana Real Estate Outlook: Hot

Indiana’s home and sale prices have significantly increased since last year, with the average sale price increasing 12.8% and home price increasing 13.1%. Home sales have also gone up, increasing 16.5%, adding pressure to the current competitive market as well as strain on the state’s home inventory. Rent prices haven’t increased as much in 2020 (only 0.6%) but have steadily increased over the last three years around 4.5%. Meanwhile, Indianapolis has become a top relocation destination for families and professionals alike. 

The average number of homes with negative equity is one of the lowest in the country at 1.6%, lower than the national average of 3.0%. This discrepancy is in part due to the lower delinquency rate and high equity gain over the past year. On average, Hoosier homeowners gained $15,000 in home equity, falling just shy of the national average. 

Delinquency rates have remained relatively low, especially when considering the rate was 2.7% at the beginning of 2020. Currently the rate of mortgages that are delinquent is 1.2%. Indiana’s unemployment rate parallels the delinquency rates, hitting a high at 11.1% during the height of the pandemic and decreasing significantly in the following months. This figure currently sits at 5.0% and is expected to improve as the economy reopens.

2020 Indiana Real Estate Market Data

Zillow Home Value Index $169,156
1-Year Change on Home Values +7.6%
1-Year Forecast +10.1%
1-Year Change on Rent Prices +0.6%
Homes With Negative Equity 1.6%
Delinquent on Mortgages 1.2%
Buyer’s or Seller’s Market Seller’s

Market Insights for Indiana

Indiana’s low-cost market has been attracting more than just prospective buyers to the state. As companies continue to see the appeal of moving to Indiana, Americans from all corners of the nation will be moving to the Crossroads of America. This added demand has created a frenzy of buyers competing for homes in a low-inventory environment, fueling a seller’s market throughout the state. 

With a decreasing unemployment rate and a more optimistic outlook for 2021, Hoosiers should see their economy rebound as more job opportunities return. Indiana is home to some large employers that receive recognition for company culture and employee happiness. Thanks to companies like Cummins, Anthem, Eli Lilly, and Salesforce, Indiana residents have access to diverse job opportunities.

Indiana doesn’t often warrant headlines in national news, and that’s the way residents like it. They enjoy a quieter lifestyle tucked in the cornfields, with access to great dining and entertainment in Indianapolis and beyond. 

Here’s how the Hoosier State shakes out in comparison with the nation:

  • First in steel production
  • Sixth in fiscal stability
  • Tenth in agricultural sales
  • Twelfth in opportunity

It’s easy to see why Indiana is such an appealing state to live. With some of the lowest cost of living in the country, Indiana has become a destination for young professionals around Indianapolis and growing families in the state’s many tight-knit communities.

2020 is about as unpredictable of a year as it gets, yet Indiana’s real estate market remained one of the backbones for the state through the turbulent year. With record-high median home prices, sale prices, and homes sold, it's clear the market is red hot and not showing signs of slowing down. Indiana real estate agents should be ready for a busy 2021 through the summer and fall with a return to seasonal lulls in the winter of 2021. 

Take On 2021 With the Best Indiana Real Estate Courses From The CE Shop

Enroll in our Pre-Licensing program now to get your career started and begin connecting your fellow residents with the home of their dreams. Or keep going strong with one of our comprehensive, 100% online Continuing Education packages. Want to stay up to date on everything in Indiana? Join the Midwestern Real Estate Facebook Group