The Indiana housing market in February 2025 presents a complex landscape, characterized by stable Median Sales Prices but declining sales activity. The Median Sales Price for homes in Indiana stands at $254,800, showing no change from the previous year. However, the Median List Price has increased by 4.9% year-over-year, reaching $269,700, indicating a potential gap between seller expectations and buyer willingness.

Price Per Square Foot metrics reveal a similar trend, with the median Price Per Square Foot rising by 5.3% to $142, and the Median List Price per square foot increasing by 5.5% to $151. These figures suggest that while sellers are optimistic about pricing, buyers are more cautious, as reflected in the stable sales prices.

Sales activity has experienced a downturn, with the number of Homes Sold decreasing by 5.2% year-over-year to 5,073 units. Pending Sales have also dropped significantly by 9.7%, totaling 6,654. This decline in sales activity is further compounded by a 7.6% decrease in New Listings, which now stand at 5,963. Despite the reduction in New Listings, inventory has increased by 9.6% to 12,113, indicating a potential oversupply in the market.

The Months of Supply, a critical indicator of market balance, has risen by 30% year-over-year to 2.4 months. This increase suggests a shift towards a more balanced market, although it still leans towards favoring sellers. The Median Days on Market have increased by 10% to 52 days, reflecting a slower pace in the market.

The average sale to list ratio has slightly decreased by 0.2% to 97.2%, indicating that homes are selling closer to their list prices. However, the percentage of Homes Sold above list price has declined by 2.2% to 15.8%, suggesting a reduction in competitive bidding. Price Drops have increased by 1.2% to 31%, highlighting the need for sellers to adjust their pricing strategies in response to market conditions.

Finally, the percentage of homes going off the market within two weeks has decreased by 3.9% to 37.2%, further emphasizing the cooling pace of the market. Overall, the Indiana housing market in February 2025 is characterized by stable pricing amidst declining sales activity and increasing inventory, suggesting a shift towards a more balanced market environment.