Northwest Indiana continues to operate outside of national housing trends as a tight supply keeps home prices strong and sales numbers steady.
Sales have dropped from this peak in 2022, but that was a very high peak, Peter Novak Jr., CEO of the Northern Indiana Realtors Association, said following the release of February’s housing report compiled by the agency.
Demand remains high because supply remains tight, despite a less robust market. Home values also remain strong throughout the region.
“Prices really never dropped despite a decrease in sales,” Novak said. Home prices are consistently above last year’s home prices.
Lake County Assessor LaTonya Spearman said home values, in general, in Lake County have continued to climb. In Indiana, property tax assessments are based on what the market value price of a home would be.
Total property values in Lake County have climbed more the 26% over the past three years. Increases in residential properties in some communities like St. John and parts of Gary saw 20 to 30% increases in residential property values.
There were an average of 1,668 homes on the market in February of this year in the counties surveyed by NIAR, which includes Lake, Porter, LaPorte, Newton, Jasper, Pulaski and Starke counties. The figure represents a decrease of 6% in inventory over January but still a 19% increase in inventory over the same month last year.
Lake County had an average of 1,002 homes on the market in February, a 7% decrease over January and a 10% increase over February 2023. There were 503 new listings in February. New listings were flat month-to-month, with a 1% increase year-over-year.
In Porter County, there were 340 homes on the market in February, a 2% decrease over January, but a whopping 46% increase over February 2023. There were 157 new listings in Porter County in February, a 25% increase over January and an 18% increase over February 2023.
There were 118 sales closed in February in Porter County in February, a 30% increase over January but a 5% decrease over February 2023.
Median days on the market in Porter County in February was 29, a 12% increase over January and a 4% increase over February 2023.
In Lake County, there were 354 closings in February, 20% more than in January and 12% more than in January 2023.
Average time on the market for a Lake County home in February was 26 days, a month-over-month increase of 13%. The figure represents a 25% decrease over February 2023.
“From a buyer’s side, it still is competitive,” Novak said. “There still isn’t historically a ton of homes (on the market) relative to normal.”
Sales are dropping but it is not enough to create relief in the supply side of the market.
“Purely from a demand point of view, there is not enough supply still,” Novak said. That means good news for home sellers who are seeing their properties sell for close to asking price, and in some cases, slightly above. Novak said buyers are starting to negotiate lower sales prices.
“I think Indiana itself has a great story to tell,” Novak said.
With a nationwide housing shortage driving up prices, the Midwest remains a bargain compared to the rest of the country. Relatively low housing prices and a good quality of life continue to draw people to the region.
“We are a bargain within the bargain,” Novak said of the state and region.
