January 2022 Market Watch
January 2022 saw a record high for January with a median sales price of $246,000 in all of the 16 county areas the Metropolitan Indianapolis Board of Realtors tracks. That equates to a 16.9% increase over January 2021.
Days on Market also dropped over January 2021 – from 37 days to 29 days this year.
January ended with still less than 1 month’s inventory of homes available at .08. This is still a very competitive Seller’s Market, here in Central Indiana.
Dr Elliot Eisenberg, internationally acclaimed economist says that with record seasonal lows, more housing formation and good job growth, 2022 is poised to be yet another strong seller’s market, despite the increase in mortgage rates.
He further says “Regarding prices, it appears that at the national level, price appreciation peaked several months ago and going forward we should see price gains weaken from the upper teens to the low teens or upper single digits. Importantly, there are no indications that we are seeing anything like what we saw in 2005/2006 in the buildup to the housing bust of 2007/2008. Dodd-Frank has done much to guarantee that home buyers are truly qualified,
what was then a housing glut is now a housing shortage, and interest rates, even as they rise in 2022, will remain at historical lows. This continues to be a strong housing market.”
January 2022 - Madison, Hamilton, Hancock Counties
Madison County – January
Seasonality plays a big part in January numbers. Typically, it’s cold, just after the holidays and not lots of people out there looking or selling. However, we did see a small uptick in New Listings and Pending Sales over January 2021 as well as December 2021.
None of the stats are too surprising considering the time of year, COVID and the inventory shortage.
Madison County Stats:
- Median Sales Price decreased from $168,500 in December to $150,000 in January. However, the Year Over Year showed an increase of 2.2% from Jan 2021 at $146,750 to the $150,000 posted this year.
- Same story with Closed sales… down from December (197) but up from this time last year – 135 in 2022 vs 114 in 2021 – up 18.4%.
- Pending Sales took a big jump of 34.2% (200) over December (149) and from January of last year, the increase was 35.1% (200 vs 148.)
- Months of Inventory (Absorption Rate) upticked a smidge to 1.0 vs .09 in December.
- Days on Market, as well, moved up to 31 from 28 in December.
While New Listings increased, it’s still not near enough inventory for buyers looking to purchase in Madison County.
Low inventory is still the driver in this local housing market!
Hamilton County – January
Again, Hamilton County is one of the hottest places in Central Indiana and it shows in the numbers!
While the Median Sales Price dropped a smidge, this is attributed to the time of year more so than a trend. New Listing and Pending sales are on the upward trajectory in January and the Percent of Ask Price is still over 100%.
- Median Sales price dropped 5% from $400,000 in December to $380,000 in January. However, Year Over Year, it’s up 13.2% over January 2021 when it was $335,750.
- Inventory remains very low as there are just not enough homes for all the people wanting to live in Hamilton County. The Absorption Rate is still less than 1/2 a month, coming in at .04 for January.
- Days on Market increased by 3 days from December to January.
- New Listings are up for January over December (358 vs 281) but down from last year at this time (358 vs 410.)
- Closed sales are way down from December (541) to 301 for January. And, down from January 2021 when we were at 328.
Active Inventory in Hamilton County sat at 125 at the end of January – down from 151 in December. Again, it’s all about having a supply of homes for sale to meet the buyer demand.
Hamilton County is one of the most competitive Seller’s Markets in Central Indiana.
- Median Sales Price increased for January to $289,000 from $284,000 in December. Not huge but definitely out of the norm for most of Central Indiana counties in January.
- Closed Sales were down 34.7% from December (111 vs 170, respectively.)
- Pending Sales increased for January to 162, 28.6% higher than Decembers 126.
- Percent of Asking Price is hovering on the verge of 100%, at 99.8 – 0.1 less than December’s 99.9%.
- Absorption Rate increased by 33.3% in January meaning there is some inventory in Hancock County, but still less than a full month’s worth at 0.8. In December, Absorption Rate was 0.6.
There is some moving and shaking going on in Hancock County. It’s a great alternative to Hamilton County, too with easy access to Indy and some great schools. Might be an option for some people to broaden their location search! Just sayin’…
Summary of January 2022 – Madison, Hamilton & Hancock Counties
So, there you have it! The Market activity for last month in Central Indiana.
What do the numbers tell you? Yup, it’s still very much a Seller’s Market. Experts are predicting a very busy Spring Real Estate Market, too.
If you are a Buyer, buying now ahead of the Mortgage Rate increases anticipated this year is a good plan. However, finding a good fit, at the right price and time is challenging.
Take heart and remember, we are at some of the lowest historical interest rates now and will be for a while yet. Don’t buy something just to buy. Make sure it makes sense for you and/or your family.
Sellers? Yes, same old, same old – Your homes continue to gain equity. Though, for 2022, experts expect those gains to drop to single digits.
Read more about the 2022 Housing Market Forecast here!
