Spring is when the real estate market starts to take off in Indiana, and 2022 will be no exception. After 2021’s woes of high demand with not enough homes to cool down prices, this next year should be more stable in comparison to the previous few years. Let’s take a look at what we expect to see from Indiana’s spring real estate market.
Continuously Climbing Prices
An analysis by Realtor.com points to a robust real estate market for Indianapolis for 2022. The data aggregator noted that Indianapolis should be the fourth-best real estate market in the United States in terms of growth. In the case of the 2022 market, these price increases may be concentrated in urban zones as people return back to the office and the COVID-19 pandemic subsides.
A combined price and sales growth should top out around 20.4 percent for the housing market in Indiana, with a sales growth of 14.4 percent compared to this point in 2021. Price growth will be around 5.5 percent. When breaking down the higher prices in the real estate market, sales of existing homes will continue to climb. This is because new homes remain more costly to build compared to the prices of older homes. A majority of the growth will come from existing homes. Only the cities of Salt Lake City, Boise, and Spokane, Washington, will have hotter real estate markets in 2022.
Buying & Selling Patterns
Listed houses will not stay on the Indiana market for long. It’s not uncommon for properties to go contingent within 72 hours of entering the market. Unfortunately, this may mean buyers and sellers may make snap decisions about their homes. Sellers who accept offers too early in the process may lose out on a higher price. While buyers, who see shortages in the market, might pay too much.
Competitive Commission Rates
Since a lot of real estate agents are entering the market and customers buy and sell homes so quickly, agents will be competing with each other for business. Commission percentages may be lowered among agents looking to get ahead of their competition. Rather than the standard 4-7 percent, some agents may see commissions as low as 2-3 percent.
Of course, a lower commission rate is mitigated by higher home prices. So real estate agents will need to balance staying competitive with each other with other factors.
Into the Summer Season
Summer is always the busiest season for real estate markets in Indiana and nationwide. This year will not be any different, even despite the increasing level of inflation driving consumer prices up by as much as 10 percent.
In fact, Inflation has already hit the housing market. We might see the trajectory of the Indiana housing market continue moving forward into the summer. This will mimic the same pattern as the spring. The reason is that people are shifting jobs and trying to earn more money with concerns about their purchasing power dwindling.
Be Prepared & Informed
Our vetted team at the Indiana Real Estate Institute can help you prepare you in your career for an exciting real estate market throughout 2022. We offer industry-leading workshops and continuing education classes to keep you informed, educated, and constantly ahead of the competition.
Contact us for more information about our classes and when they begin!