Indiana’s top-performing housing markets remain constrained by tight supply, with homes selling in as few as 28 days as statewide inventory approaches two months. The data points to a widening divide as some metros gain breathing room while others stay firmly seller-driven.
This disparity creates a 50% difference in sales speed between Indiana’s tightest and longest markets, carrying major implications for pricing strategies and transaction timelines statewide.
Kokomo leads state with 28 days on market
Kokomo claimed the top spot among Indiana metros with homes going under contract in just 28 days on average, according to HW Data analysis of single-family home sales. The metro’s 1.8 months of inventory and $195,900 median price illustrate how limited supply drives rapid transactions, with 208 active listings serving the market.
Three metros tied for second place at 35 days on market: Muncie, Elkhart-Goshen and Lafayette. Muncie recorded 1.7 months of supply with a $199,900 median price, while Elkhart-Goshen showed the highest median at $345,000 despite just 1.6 months of inventory. Lafayette rounded out the group with 1.9 months of supply and a $368,688 median price.
Columbus completed the top five at 42 days on market, with 1.7 months of inventory and a $309,950 median price.
Bloomington and Michigan City show more breathing room
Bloomington and Michigan City were the only Indiana metros with more than two months of supply, offering slightly more balance between active listings and buyer demand than most of the state. Both markets recorded 56 days on market, showing how additional inventory naturally lengthens sales timelines.
Bloomington maintained 2.8 months of supply with a $399,000 median price and 492 active listings, while Michigan City reported 2.5 months of inventory at a $299,500 median. By comparison, the national supply level of 2.6 months highlights how Indiana’s overall market still leans toward sellers.
Year-over-year data shows mixed velocity trends
The data reveals diverging patterns across Indiana’s leading metros compared with Oct. 4, 2024. Muncie accelerated 17%, with days on market dropping from 42 to 35 while prices held near $200,000.
Conversely, three metros slowed 20% to 25% year over year. Elkhart-Goshen extended from 28 to 35 days despite a 15% price increase to $345,000, while Columbus slowed from 35 to 42 days with prices declining 14% to $309,950. Lafayette also extended from 28 to 35 days with prices dipping 1.7% to $368,688.
Inventory growth accompanied these shifts, with Columbus and Kokomo both increasing supply 29% to 31% year over year. The combination of slower movement and selective supply growth suggests Indiana markets may be entering a transitional phase, even as most metros continue to operate well below the four- to six-month supply range typically associated with more balanced conditions.
Across the U.S.
Across the nation, housing supply averages 2.6 months, but most Indiana metros remain below that threshold — keeping sellers in control even as buyers begin to see new opportunities emerge.
Nationally, the median list price stands at $440,000, with new listings entering the market at a median of $405,000, according to HW Data. By comparison, Indiana’s metro medians — ranging from about $195,000 in Kokomo to $399,000 in Bloomington — highlight the state’s relative affordability and appeal for value-focused buyers and investors.
Housing professionals can track inventory, pricing and absorption trends for local markets using the latest tools and insights at HousingWire Data.
