2015 Indiana Real Estate Market Predictions

After a painfully slow increase last year, the near future for the Indiana Housing Market looks quite bright by comparison. Housing market predictions by Zillow estimate a 3.2% increase for Indiana throughout 2015 which is a huge leap forward as opposed to the 0.3% experienced in the year that passed. This is a great opportunity for both home owners who are interested in selling their properties at the best prices in the following year and for investors interested in expanding into Indiana Real Estate by taking advantage in the continuous rise of home values. Currently, the median home value in the state is $112,000, whereas the median rent is $900 according to our research. As far as mortgage delinquency, Indiana is under the national value of 6.0% with a median of 4.6%. From an economical point of view, the State of Indiana is constantly on the rise. For four years now, the gross domestic product grew over two percent each year. According to BMO Economics U.S. State Monitor Report released bi-annually, Indiana’s GDP should rise by 2.7% this year. The auto, life science, transportation, information technology, and research and design industries remain key players in the evolution of Indiana’s economy.

Indiana is known across the country for being a highly welcoming, generous and friendly state that encourages businesses to flourish in their territory. The positive reputation is so remarkable that citizens all around the United States salute Indiana for its signature “Hoosier hospitality” based around the state’s nickname. Unfortunately, the waters were rather troubled in the Hoosier State this year due to the Religious Freedom Restoration Act controversy. Some of the greatest businesses in the state – including the top 3 most profitable public companies in Indiana (Anthem Inc. (formerly known as WellPoint Inc.), Eli Lilly & Co. and Cummins Inc.) took drastic action and signed an open letter to Governor Mike Pence to ask for changes in the law. Hopefully, that dispute will not affect the 2015 Housing Market evolution. You can click this link if you are interested in reading a full analysis for last year’s Indiana Housing Market.

Main Factors of the 2015 Indiana Real Estate Market

  • Indiana Real Estate

    Thinking of investing in the Indianapolis housing market? Find out more in our detailed report.

    Even though Zillow does not provide data for the median listing price or the median sale price for the Indiana Real Estate market, we know that average home value is $112,000. Compared to the United States median home value of $179,200, homes in Indiana are considerably more affordable than in many other states in this country.

  • As we pointed out before, Indiana’s mortgage delinquency is 1.4% lower than the national average of 6.0%. Even though it does not directly result in foreclosure, mortgage delinquency represents the first stage when a payment is not made.
  • As of May 31st, 2015, Indiana rentals succeed in remaining under the median rent estimation value for the United States. While Zillow indicates a $1,367 rent index for the U.S., Indiana is pointed out with a $1,055 average. The rent list price for Indiana is $900, with $0.76 per square foot. Throughout the past four years, Indiana rentals have experienced a general increase, with the exception of the first four months in 2013 when prices dropped. After this period, rentals have undergone a continuous growth that is maintained until the present.
  • The Indiana Housing Market is currently labeled as healthy with 108 average days on Zillow as of April 30th, 2015. There is currently no data available on homes with negative equity in the state, so we cannot compare the number with the 15.4% United States average.
  • In the Indiana Business Review, the Director of the Benecki Center for Real Estate Studies at Indiana University, Douglas M. McCoy, states that “job growth, consumer confidence and access to attractive credit terms are the primary drivers that bring potential homebuyers to the market”. By taking these aspects into consideration, specialists in the field confirm the Housing Market predictions for Indiana in 2015.
  • In fact, the Kelley School of Business economists suggest in a University press statement that “2015 could be the best year of economic recovery since the Great Recession”. Even though there is no certainty surrounding these claims, as the University experts themselves state, there are quite a few factors pointing in that direction.
  • Indiana University specialists also highlight the potential growth of the labor market in 2015: “the forecast said there should be monthly employment increases above 220,000 throughout the year (…) with the possibility that more than 300,000 jobs could be added during peak months. In addition to this, by the end of 2015, the rate for unemployment very well might be even lower than 5.5%. This is a fantastic piece of news for Indiana dwellers or those who are looking to relocate to this state and find a job.
  • As we discussed above, the Religious Freedom Restoration Act might take a toll on the Indiana 2015 Housing Market. Indiana Senator Dan Coats briefly explained the effect of the controversy on the local economy for FOX59: “(…) the governor of Connecticut not allowing state employees to travel to Indiana… I know that our state is not a discriminatory, bigoted state, we are also a state where people have deeply held religious beliefs”. Many businesses considering expansion in Indiana have currently withdrawn their plans until further notice. The situation certainly serves as one of the most significant influencing factors for the 2015 Indiana Housing Market.
  • Trends in the Indiana Real Estate market look promising for the year to come. After an all-time high of $118,000 in November 2005, the prices slowly but surely dropped permanently for the following six years, with an all-time low of $102,000 in December 2011. However, beginning with 2012, the prices have gradually risen and are expected to grow from $112,000 (June 2015) to $115,000 in May 2016.

Best Places to Live in Indiana

One of the most beloved cities not only in Indiana, but also in the United States, is the suburban beauty of Carmel. It enjoys multiple recognitions for its excellent services, programs and quality of life recently ranked as the “#1 Best Place to Live” in 2012 by Money Magazine, the “#3 Best Place to Live” in 2014 by Money Magazine, the highest award of Arborculture, “The Gold Leaf Award” in 2002 and the 2006 City Livability Award for Roundabouts. With multiple attractions like the Rollfast Gran Fondo, the Carmel Farmers Market, the Carmel Monon Community Center or the Carmel Arts & Design District in Old Town. The city really is a delight for residents. As far as Carmel Indiana real estate goes, it is way above the state house value median at $268,600. Our one year forecast predicts a great 4.2% increase in the following year, meaning that the median home value for Carmel should reach $279,000.

Another great alternative for sellers and investors is the Bloomington Indiana real estate market. Even though the statistics are not as high as those for Carmel, homes in Bloomington are still valued at an impressive $147,600. This rate sits well above the Indiana Housing Market average. The good news is that the Bloomington real estate market is expected to increase by 3.2% in 2016, after a slight -0.9% decline in 2014. Moreover, yet another respectable fact regarding the area is that the mortgage delinquency is a mere 2.5%, lower than the state average and considerably lower than the national one.

While Zillow does not offer much data regarding the Indianapolis housing market, we know that the median rent price is not as great as the Indianapolis Metro median, being just $850, as opposed to $1,050. Delinquent mortgages in Indianapolis, however, are just one step under the national 6.0% value at 5.9%. We know that homes are currently valued at around $123.000 on the Indianapolis housing market, but we do not have a forecast available for 2016.

Fort Wayne has unfortunately experienced a significant decrease in home values during the past year (-3.5%). The year that is to follow is predicted to be highly important for Fort Wayne real estate, as home values are expected to rise by 2.5%. Home rentals in Fort Wayne are some of the most affordable in the state, with a median rent price of just $600. Homes in Fort Wayne are currently valued at $82,200, according to Zillow, and are expected to reach $84,277 in May 2016. A few neighborhoods potential buyers should consider for purchasing at small prices are Lincoln Park ($63,500), North Highlands ($62,200) or Hamilton ($59,900).

Southern Indiana real estate is not in such a prosperous situation as most of the cities in Indiana. After a -6.0% decline in the last year, the median home value in South Bend, according to Zillow, is currently $58,400. This means that the median home value in this area is $53,600 less than the Indiana Housing Market average, and the slight 1.2% one year forecast is not going to greatly assist in the overall increase. Regarding mortgage delinquency, South Bend is a lot closer to the national average of 6,0%, at 5.8%. Nevertheless, individuals looking to rent a home in Indiana on a budget might want to consider South Bend as an alternative; the median rent price is just $650, an amazing $250 less expensive than the state average.

Neighboring Competitors of the Indiana Real Estate Market