Days on Market continues to be the big elephant in the room.
For three consecutive quarters, Indianapolis has seen DOM at or above 50 days.
But there is a smidge of good news: After hitting a record high 55 DOM, Indy posted 50 DOM in Quarter 3. Not great progress, but some progress nonetheless.
The overall number of homes rented has shown a decrease since Q2, with Indianapolis experiencing the most significant change, with a notable 13% decrease. It’s becoming increasingly evident that more people are opting to stay put in their current homes. Whether that be not buying a home due to soaring interest rates, or even changing rental homes due to just the cost of moving in an uncertain economy. Looking back to last year, homes rented increased from 2022 Q3 to 2023 Q3 by 5%, mainly due to demand finally being met with supply.
Rental rates seemed pretty steady throughout Q3 and did not waver much from Q2 and Q1. Slight increases across the board which were expected, and even some decreases were seen throughout some of the suburban areas.
Since last year, rental rates throughout Central Indiana have increased by $130 on average. Indianapolis was close to the average with a $105 average increase since Q3 of 2022.
T&H Realty Services’ Perspective
Quarter 3 was record-setting for us. We leased a record number of homes in the Quarter and were inundated with rental leads and applications.
However, with the start of October came a MAJOR slowdown in leasing activity.
And, unfortunately, we’re about to hit the chilly season. As yo may know, the rental market in the Indianapolis area is seasonal: winter months are cooler in temperature and in the rental market.
Expect to see the Q4 DOM above 50 days yet again.
The numbers haven’t necessarily caught up but, as mentioned, we are already starting to see the beginning of a frigid Q4, leaving less confidence for a firey start to 2024.
There’s just a general “unsettled” feeling in the market right now. For more information on what is going on with the Central Indiana market, listen to the following Indy REI Podcast Episodes: