Northwest Indiana Real Estate Market Update – December 2022

Stay informed about sold Northwest Indiana real estate and what’s going on with homes for sale in Northwest Indiana by reading our monthly update on the local real estate market. Each month I review what happened last month, how it compares to last year, and the current inventory of NWI homes for sale.

Northwest Indiana Real Estate Sales November 2022

The number of homes sold in Northwest Indiana during November 2022 was basically flat compared to 2020. Across the entire region 1,097 home sales were reported to the Northwest Indiana MLS compared to 1,090 during November 2020. What was not so similar was the prices. Home prices were up in every category. Let’s take a look.

Northwest Indiana Houses Sold In November 2022

Houses for sale in Northwest Indiana accounted for 965 of the Northwest Indiana home sales reported to the regional MLS. The average sale price of a house for sale in Northwest Indiana was $257,315. The median sale price was $235,000 which is +9% compared to November of 2020. Houses for sale in Northwest Indiana sold for an average and median price per square foot of $130 during the month.

Northwest Indiana Condos Sold In November 2022

The annual appreciation rates for condos slowed down considerably compared to earlier months in 2022. The average sale price of a condo sold in Northwest Indiana was $181,416 and the median sale price was $151,000. This is +3% and +1% compared to November 2020, respectively. Condos are currently selling at about $132 to $137 per square foot.

Northwest Indiana Townhomes And Half-Duplexes Sold In November 2022

Half-duplexes and townhomes for sale in Northwest Indiana were among the best performers for November 2022. This sector of the market represented about 8% of the overall market. Here, the average sale price was $246,133. The median sale price for a half-duplex or townhome was $230,000. This is +9 and +6% compared to a year ago, respectively.

Northwest Indiana Luxury Home Sales In November 2022

Luxury homes sold in Northwest Indiana represented about 5% of the home sales during November 2022. For our analysis, a luxury home is a home of any type with a sale price above $500,000. The average sale price of luxury real estate during the period was $660,748 which is -1% compared to a year ago. The median sale price was $599,950. The median price per square foot was $175.63, which was 5% higher compared to November 2020.

Current Inventory Of Homes For Sale In Northwest Indiana

Northwest Indiana is starting December with fewer homes for sale than I had previously predicted. Overall, there are 8% fewer homes for sale at the beginning of December compared to November. Currently, there are 1,288 available homes for sale. Based on sales numbers from a year ago this equates to about 35 days of supply. The market is once again getting tight. Too tight.

Currently, over 1,100 houses are for sale in Northwest Indiana. The average list price of these houses is $353,936. The median list price is $275,000. This really is on par with what list prices were like to start November. The average price per square foot is $180, and the median list price per square foot is $135. This is a wide difference amongst homes.

About 150 half-duplexes, townhomes, and condos are currently for sale in Northwest Indiana. These homes collectively have an average listing price of about $282,000 and a median list price of about $277,000.

Luxury homes for sale in Northwest Indiana account for nearly 200 of the NWI homes for sale. These homes have an average list price of $891,505 and a median list price of $732,450.

Northwest Indiana Real Estate Market Predictions

Home Inventory Tightens Up

I was surprised to see an overall 8% reduction in the number of homes for sale to start the month. I expected -3% to +3% compared to 30 days ago. I believe the number of homes for sale will really dictate the course of the start of the year and the early selling season. I think inventory will stay tight as it has with a consistent 30 to 40 days of supply.

Home Prices Continue To Stabilize

Home prices are continuing to increase but not as rapidly as earlier in the year. Since July the year-over-year appreciation rate for houses in Northwest Indiana has lessened to the mid to upper single digits. However, November represents the first month to see some meaningful downturn in the appreciation rates for condos, townhomes, and half-duplexes. This is just a further sign of prices relaxing.

A Business As Usual Winter

Winter home sales will continue at the volume trends we have seen recently which closely mirror 2020. Additionally, home prices will increase slightly compared to a year ago. Weather forecasts are for a wet but mild winter. Limited snowfall can help encourage buyers to get out there and buy.

Conclusion

The Northwest Indiana real estate market continues to perform well. Prices continue to increase but at a much more tolerable pace compared to earlier in 2022. The low inventory levels of houses for sale in NWI continue to place pressure on the housing market. Quality homes are selling rapidly, and too few homes are on the market to meet the needs of all homebuyers. Northwest Indiana real estate is primed for a relatively business-as-usual winter selling season with homes appreciating in the middle to upper single digits.

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*Data Source: GNIAR MLS, December 1, 2022