Is now a good time to buy RE in Indy?

The day old question… how’s the market?

As a realtor, this question can be exhausting. But it is an important one to talk about for investing in real estate. Everyone wants to win, everyone wants a home run, but what does that look like?

Some people are investing for cash flow, some for appreciation, some for a tax bill, some for family members, and on and on.

At the end of the day, everyone wants to FEEL like they are buying a good deal. And it’s my job as a realtor to know the facts of what a good deal is in my market. If you are a realtor, I would encourage you to do the same. Know what properties could rent for, do some rehab walks with contractors to learn numbers, ask local investors the types of returns they are getting. Until you are plugged in, you have no idea.

Here are 5 things pertaining to the Indianapolis housing market that might be helpful:

1. Indianapolis Ranked Among Top U.S. Housing Markets

Zillow has identified the Indianapolis-Carmel-Anderson metro area as the second hottest housing market in the U.S. for 2025, trailing only Buffalo, NY. This distinction is attributed to strong job growth, relative affordability, and a tight housing inventory. Over 42% of homes in the area are priced below $236,000, making it particularly attractive to first-time buyers and young families.

2. Home Values Experience Moderate Growth

The average home value in Indianapolis has risen to $227,557, marking a 3.0% increase over the past year. Homes are typically going under contract in about 21 days, indicating a brisk market pace.

3. Inventory Levels and Pending Sales on the Rise

In March 2025, central Indiana saw a 3.7% increase in pended home sales compared to the same month in 2024. Available housing inventory also grew by 20.7% year-over-year.

4. Rental Market Strengthens Amid Affordability Constraints

With affordability challenges in the for-sale market, the rental sector in Indianapolis is experiencing heightened demand. One-bedroom rents are projected to range between $1,110 and $1,120 per month, while two-bedroom units are expected to command higher rates, reflecting the city's strong migration trends and economic stability.

5. Market Trends Toward Balance

The Indianapolis housing market is showing signs of moving toward a more balanced state. While home prices continue to rise, the pace has moderated. Inventory levels are improving, offering buyers more options and slightly more negotiation leverage.

So what does this mean for investors?

It means people playing for appreciation will do well to invest in Indianapolis and the surrounding areas. Job growth is up, inventory is up, deals are up.

Cash flow will be a little tighter with the lending market combined with the increased awareness of the gold that lies in Indianapolis, but there are deals to be found.

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