Northwest Indiana home sales have been booming in recent years but are down 2.5% so far this year, in a slowdown a residential real estate sector leader describes as an apparent correction.
A total of 9,461 existing homes have sold through the end of August, the most recent month for which data is available in the seven-county Northwest Indiana region, according to the Greater Northwest Indiana Association of Realtors. That's down from 9,699 at the same time last year.
"In terms of August, we're seeing what we've seen the past couple of months," GNIAR CEO Pete Novak said. "During the past six months, we're down 11.5% as compared to the prior year. We are still seeing prices rise."
Home sales in Northwest Indiana fell 19% to 1,247 in August, as compared to 1,540 the previous year, according to the Greater Northwest Indiana Association of Realtors.
"The housing market is decreasing from very historic highs," Novak said. "Interest rates have a lot to do with that. Demand has fallen but is still very strong. Inventory is low and prices are still rising."
The median sales price rose 8.7% to $250,000 in August, up from $230,000 at the same point in 2021, according to GNIAR. So far this year, the median sales price in Northwest Indiana has risen 11.9% from $210,000 to $235,000.
"Inventory is double what it was last fall," Novak said. "It's gone from about 700 total homes to about 1,500 homes for sale. But it's still below what we would see in a normal market. It's still historically low."
Northwest Indiana only has about 1.5 months of inventory on the market.
"Demand is still strong from Chicagoland and Illinois," Novak said. "The market has been heated for years and remained strong even as other markets started seeing home sales decline. It's cooled off over the past seven months but we've held strong. Home sales have been declining nationally but we're lagging behind that because we have so many home buyers coming from outside the area."
© Copyright 2024, nwitimes.com, Munster, IN