Indiana Home Sales Hit Highest Levels Since 2022

INDIANAPOLIS — The Indiana Association of REALTORS® (IAR) has released its mid-year real estate update, revealing that statewide home sales and new listings grew steadily through the first six months of 2026. The surge puts the state on track for its most active year of real estate since 2022, fueled largely by easing mortgage rates that are cushioning the impact of rising home prices.

According to the report, closed sales across Indiana are up 2.5% year-to-date, with 38,971 homes sold in the first half of the year. New listings also jumped 5% compared to the same period in 2025, giving eager buyers 54,106 new options to consider on the market.

The state’s median home sale price rose 5% year-over-year to $275,000, peaking at a monthly median of $290,000 in June. Despite the steady climb in property values, Indiana homes remain highly affordable on a national scale—tracking more than 30% lower than the U.S. median home price.

Furthermore, drops in financing costs have allowed buyers to maintain their purchasing power. The 30-year fixed mortgage rate averaged 6.25% through the first half of 2026, dropping more than half a percentage point from last year. As a result, the median monthly mortgage payment for a recent Indiana buyer increased by less than one percent.

Aaron Luttrull, 2026 IAR Chair stated that, “Even though our median sale price is up 5% over the first half of 2025, the monthly payment on a typical home is only up one percent. Lower rates are helping buying power keep up with price growth.”

While overall inventory has grown 13% over last year—averaging 15,402 available homes on any given day—the market remains tight by historical standards. Real estate leaders note that current inventory is still lagging below 2019 levels, even though Indiana has gained 180,000 new homeowner households since then.

This dynamic has shifted market share toward repeat buyers. Closed sales between $250,000 and $750,000 grew three times faster than luxury sales above $750,000, while sales under $250,000 declined. Mark Fisher, IAR CEO said that “The good news is that Indiana is growing and homes are gaining value. But the bottom line is that we have a more balanced market because rates have kept demand in line with supply… we still have a long-term housing shortage.”

Luttrull added that first-time buyers continue to feel locked out, noting that only one out of every five renter households in Indiana currently earns enough to comfortably purchase a $250,000 home with a 10% down payment.

The mid-year data highlighted varying trends across the Hoosier State:

Suburban and Rural Surge: Rural counties saw a 6% increase in closed sales, while suburban counties grew by 5%.

Indianapolis Metro: Central Indiana registered the highest volume of transactions, tracking 15,082 closings (up 3%) at a median sale price of $318,000.

Northwest & Fort Wayne: Northwest Indiana placed second in total sales with 3,797 closings (median price $277,000), followed by Fort Wayne with 2,741 closings (median price $270,000).

Highest and Fast Prices: Bloomington ($325,000) and Indianapolis ($318,000) remain the state’s most expensive markets. Meanwhile, Elkhart experienced the sharpest price growth, skyrocketing 11% to a median of $270,500.

The Indiana Association of REALTORS® (IAR) makes MLS housing data available at the Indiana Housing Hub (at https://data.indianarealtors.com) on a monthly basis for the state and all 92 counties; just click the map on the homepage for county-level details. Indiana’s 21,000 REALTORS® guide Hoosiers on the journey to buying or selling a home with a higher set of professional standards and strict Code of Ethics while advocating for affordable and accessible homeownership. Learn more at IndianaRealtors.com.