Northwest Indiana Real Estate Market Trends for February 2025

Here, you can learn about the current state of the Northwest Indiana real estate market including local housing market trends and general information about NWI homes for sale.

I am one of the top real estate agents in Northwest Indiana, and I offer low real estate commission fees in Northwest Indiana.

Overview of Northwest Indiana Real Estate Housing Market Trends Now

• • Sales Volume -Trending up with a 9% increase in the number of homes sold during January 2025 vs. January 2024.
  • Inventory – Housing inventory is trending up with 15% more homes for sale than a year ago and an 11% increase in available homes for sale per every under contract home for sale.
  • Home Prices – Single family home prices continue to rocket upward with middle single digit gains on a same month year ago comparison and a 12% increase in the median single family home price in Northwest Indiana.
  • Homebuyer Activity – Recovering with only a 10% decrease compared to January 2024 in the number of showings per existing home for sale far better than the -19% we saw in December 2024.
  • Who does the market favor? – The market continues to slightly favor homebuyers.

January 2025 Northwest Indiana Home Sales Data

584 home sales were recorded with the NIRA Northwest Indiana MLS during January marking a 9% increase compared to January 2024. Let’s take a closer look at these homes by category.

Northwest Indiana Houses Sold in January 2025

500 houses for sale in Northwest Indiana were sold in January 2025. These homes had an average sale price of $295,938 up 7% compared to a year ago. The median sale price increased 12% on a year over year basis to $269,550. The average and median sale price per finished square foot was $149 and $147, respectively.

Homes are selling at a healthy pace that is neither overly fast or unusually slow. Existing houses for sale in Northwest Indiana selling during January 2025 were on the market for an average of 43 days and a median of 24 days. This is compares to 41 and 22 days, respectively, in January 2024.

Home sellers’ pricing is equally on target. On average homes are selling at 93.9% of their original list price. This isn’t far off of the 94.2% of the original list price seen in January 2024. This indicates recently home sellers are a bit more optimistic than the market is willing to pay.

Additionally, homebuyers remain reluctant to negotiate on an overpriced home. On the average homebuyers are paying 96.6% of the more recent list price and on the median are paying 98.1% of the most recent list price. Home sellers seeking more activity should answer to buyers by offering a lower price; the lean difference between the recent list price and close price supports buyers’ lack of willingness to spend a lot of time and effort negotiating.

Northwest Indiana Condos Sold in January 2025

Condos for sale in Northwest Indiana represented 24 of the 584 homes sold in Northwest Indiana during the month. These homes had an average sale price of $179,519. The median was $194,750. The average sale price per finished square foot was $140, and the median sale price per finished square foot was $144.

Northwest Indiana Townhomes and Half-Duplexes Sold in January 2025

Townhomes for sale in Northwest Indiana accounted for 60 home sales during January. The average sale price increased 4% to $273,838, and the median list price increased 5% to $258,500. The average sale price per finished square foot was $170 whereas the median sale price per finished square foot was $177. These are increases of 4% and 7%, respectively, showing the strength of the small but might market for townhomes for sale in Northwest Indiana.

Northwest Indiana Luxury Home Sales in January 2025

54 luxury homes for sale in Northwest Indiana were sold during January 2025. This is a 32% increase compared to a year ago! I assign luxury home status to home selling for more than $500,000 which is usually the top 10% of the real estate market.

These homes had an average sale price of $710,723 (-9%) and a median sale price of $576,850 (-2%). The average sale price per finished square foot was $184 down 9% compared to a year ago. The median sale price per finished square foot fell 5% to $162. This indicates some weakness around the luxury market in Northwest Indiana at this time.

Current Trends in Northwest Indiana Homebuyer Activity

Homebuyer activity is starting 2025 on the rebound. During January 2025 we saw a 4% increase in the total number of showings. However, due to the fact there are more homes for sale today than a year ago the average number of showings per existing home for sale fell 10% to 6.1 showings vs. 6.8 showings in January 2024. However, this is an improvement from December 2024 when the number of showings was down 19% compared to December 2023. We are also seeing homebuyers come out of the holiday slump.

Current NWI Homes for Sale

Inventory Levels

The number of homes for sale in Northwest Indiana continues to slowly creep upward. Currently, there are 1,969 homes for sale in Northwest Indiana. This is up 15% compared to a year ago but down 6% compared to the start of last month. There are currently 1.9 active listings for every pending transaction vs. 1.7 available homes for sale at the start of February 2024. This clearly illustrates inventory is expanding relative to homebuyer demand.

Houses for Sale in Northwest Indiana

Today we have 1,790 houses for sale in Northwest Indiana. This is an 18% increase compared to a year ago. These homes have an average list price of $371,222 which is down 1% compared to a year ago. The median list price is flat at $317,500. The average list price per finished square foot of houses for sale in Northwest Indiana is $170.

New Construction Houses for Sale in Northwest Indiana

358 new construction houses are listed for sale in Northwest Indiana. This is up 4% compared to a year ago but down 11% compared to the start of January 2025. This is the second consecutive month where metrics are indicating homebuilders are slowing their pace of building homes. New construction homes for sale in Northwest Indiana currently have an average list price of $487,430 and a median list price of $446,427. These are both essentially unchanged from a year ago. The average list price per finished square foot of these homes is a staggering $217!

Luxury Homes for Sale in Northwest Indiana

328 luxury homes for sale in Northwest Indiana are currently listed on the NIRA Northwest Indiana MLS. This is an increase of 16% compared to a year ago. Luxury homes account for 17% of the homes for sale in Northwest Indiana.

Luxury homes for sale in Northwest Indiana have an average list price of $799,890 down 6% compared to a year ago. The median list price is down 9% to $635,000. The list price per finished square foot is $241 (-3%) and the median list price per finished square foot is $219 (-2%).

Northwest Indiana Real Estate Market Forecast

Here, I provide my trend predictions for the Northwest Indiana real estate market over the next 90 days. This month I am going to stick with the same three topics from the previous month’s forecast, but new commentary on each of these.

Mortgage Interest Rates

I do not predict mortgage interest rates to fall meaningfully over the next 90 days. Mortgage rates significantly affect homebuyers’ affordability on what they can pay for a home. February 2024 started with a 30-year average mortgage rate of 6.63%. The most recent release from the FRED economic data service before publishing this market update was January 30, 2025. There, FRED indicated the 30-year average rate in the US was 6.95%. Without some sort of catalyst, current economic projections indicate mortgage interest rates to remain where they are into the near future.

Homebuyer Demand

I do predict we will see stronger homebuyer demand during the 2025 spring market compared to 2023 and 2024. The reason for this is that needs can only be left unanswered for so long. The majority of home purchases and sales are related to a life event: births, deaths, relationships starting, engagements, marriages, divorices, job changes, or needing more space as the kids grow up or needing less space as the kids leave.

Over the last three years many people have delayed making a housing change in the hope of timing the market for a better interest rate or to see lower home prices. Neither has occurred. Despite this, the ball keeps on bouncing (life goes on). The current homeowners whose kids have grown bigger, that person who has retired but stayed in the area despite dreaming of being elsewhere, and that relationship that should have ended last, last Christmas, many of those people will be making moves this year. Those things can only wait so long.

Home Prices

Northwest Indiana remains the economically resilient machine that it is. Employment is strong and wages continue to increase. We continue to see Illinois residents migrating permanently to Northwest Indiana. Homebuilders are building, but it’s not a haphazard building boom. This will all support home prices, and I expect home prices in Indiana to rise in the upper single digits to the low double digits over the next 90 days. There are no meaningful catalysts for home prices to fall at this time.

Advice For Northwest Indiana Homebuyers & Home Sellers

Whether you are looking for homes for sale in Northwest Indiana to buy or thinking about selling your Northwest Indiana home here is some advice.

Homebuyers

Homebuyers should take advantage of the early spring market before many more homebuyers show up. There are no catalysts for home prices to fall in the near term. Additionally, the catalysts that support falling mortgage interest rates are weak at this time. Besides, if you buy now and rates do fall in the future it is likely you will be able to refinance the mortgage. Beat out competition and get out there and get buying

Moral of the story, let’s get you out there buying! Completing your Quadwalls Dream Home Finder Assistant is a great first step!

Home Sellers

The market slightly favors homebuyers. Sellers should be pricing their homes accurately and doing what they can to improve their overall aesthetic sentiment. Smart marketing will go a long way, too. Home sellers will benefit most financially by listing now. Home sellers get the most at the times of highest homebuyer volume. This occurs in March through early June. If you are thinking about selling, get on the path to selling.

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Northwest Indiana Real Estate Market Trends Wrap Up

The Northwest Indiana real estate market remains remarkably resilient. Macroeconomic indicators illustrate ongoing trends are likely to continue. This includes mortgage interest rates in the 6% to mid-7% range with home prices continuing to creep upward. The luxury market might face some pressure as we get into spring. I do expect a slightly stronger spring market in 2025 vs. 2024. Though inventory has slightly increased, savvy sellers can take advantage of the situation and end up with a great result.

If you ever want to talk about buying or selling a home in Northwest Indiana you can contact me at (219) 309-6098 or chuck@quadwalls.com.

The Quadwalls Team Of Northwest Indiana Real Estate Agents

About Quadwalls.com

Quadwalls.com is a real estate website founded in Valparaiso, Indiana. The purpose is to help homebuyers and sellers save money and make better decisions when buying or selling real estate. Quadwalls.com does this by connecting your excellent information about real estate in Northwest Indiana and connecting you with the best real estate agents in Northwest Indiana.

Tools to Help You Get Started

We have tools for you to use to help you with buying or selling a home in Northwest Indiana.

Tools for Homebuyers

• Quadwalls HomeFinder Assistant – Put some rocket fuel in your search by telling us what you are looking for. We’ll help you find it.
• The Quadwalls Home Search App – Our app is fast, easy to use, and can connect you with us. We are here to answer your questions about homes for sale in Northwest Indiana.
• The Blog – Our blog is loaded with information to help you with what you need to know when buying a home.
• The Team – A team of the best real estate agents in Northwest Indiana ready to help you find and buy your new home.
• Lenders – If you need a mortgage to buy a home but don’t know where to start we can help you. Click here to start the home mortgage pre-approval process with Jason Woodard at Diamond Residential Mortgage Corp.

Tools for Northwest Indiana Home Sellers

• Quadwalls E-Valuation – We offer the free service of telling you what your home is worth. It is all online but is more thorough than the automated zesty online valuations. One of our team agents will actually research what your home is worth.
• Quadwalls Low Real Estate Commission Fees – The Quadwalls Real Estate Team offers low real estate commission fees along with its full-feature home selling service.
• The Blog – Our blog is loaded with articles to help you understand what to do for a successful home sale and how to increase the value of your home.
• The Team – Our team ranks amongst the best real estate agents in Northwest Indiana.

* Data was pulled from the NIRA Northwest Indiana MLS on February 7, 2025.

**Specific homes for sale here were available as of February 7, 2025 but may have been sold at the time you are reading this post.