Mortgage rates fall to 2025 low as Indiana home sales and listings continue to outpace 2024 totals in October

Home sales across Indiana continue to gain ground on 2024 according to the Indiana Association of REALTORS® (IAR). 7,177 properties changed hands in October, up 4% year-over-year. New home listings (9,517) also outpaced last October by 6%. Homes sold for a median price of $270,000, unchanged from September but 6% higher than 2024. Through the first ten months of 2025, closings are up 2% and new listings are 6% ahead. 

But although October offered the lowest average mortgage rates of 2025 and largest monthly supply of homes for sale since 2019 – 18,975 listings available on an average day – pending sales dipped slightly to 6,795, 1% below 2024. 

“Affordability has improved since Labor Day,” said 2025 IAR president Kim Ward, managing broker of North Eastern Group Realty (Fort Wayne). “Mortgage rates are lower, listing and sale prices are down and there are more homes available at every price category. But in the last quarter of the year, it’s natural for many buyers to start looking ahead to 2026.”

Ward pointed out that homes under contract from $250,000 to $750,000 countered October’s overall year-over-year trend for pending sales, finishing 5% above 2024.   

“We continue to see Indiana homeowners leveraging historic equity gains and rising property values to help finance their next move, which has kept the market for higher-priced homes more active all year,” she said.

As new contracts slowed in October, days from listing to pending sale also rose to 25, three days longer than 2024. With fewer new autumn homebuyers, sellers continued to adjust to a more balanced market: The monthly median sale price dropped to less than 95% of the original list price and more than half of all homes on the market through October had a reduced price since listing.

Ward stressed that even with more balance between buyers and sellers, Indiana’s median sale price continues to hover 5% above 2024, at $267,000 year-to-date. A recent IAR analysis estimates that homeowners who have been in their current homes at least six years have hit six figures in median equity statewide. 

“Today’s first-time buyers are dealing with higher prices but should understand that rising home values also signal a healthy housing market,” Ward finished. “They certainly have more options and bargaining power to find the right home within their budgets and start building wealth for whatever the future brings – more space for a growing family, the cost of college or a new business opportunity, or even planning ahead for retirement.”  

Local and regional trends:

Central and Northwest Indiana along with several of the state’s mid-sized markets drove the state’s year-over-year margin in closed home sales in October:

The Indianapolis metropolitan area’s 2,711 closed home sales were 6% ahead of October 2024 at a median sale price of $314,000; Indy also saw new pending sales (2,646) finish 1% above last October.

Northwest Indiana also saw October closings (702) finish well ahead of 2024 (+9%) at a $260,000 median price.

The Evansville metro, with 330 closed sales (+6%) at a $225,000 median, also outpaced the statewide monthly sales trend among larger regions.

Elkhart (180 closed sales, +29% year-over-year), Muncie (108 closings, +48%), Kokomo (also 108 closed sales, +9%) and Southeastern Indiana (48 sales, +12%) also helped pull the state above October 2024 totals by 4%.

The county leaders in home sales in October are Marion (1,027 closings, 2% ahead of 2024), Hamilton (601, +19% year-over-year), Lake (486, +2%) and Allen (466, 2% below October ’24 though still up 3% in closings year-to-date).

Central Indiana suburbs (particularly Boone and Hancock in addition to Hamilton) were strong contributors to regional gains in home sales; similarly, Porter County (131 October closings, up 31% year-over-year) boosted Northwest Indiana’s margin above 2024.

Vanderburgh County (209 closed sales, +5% vs. 2024) anchored the three-county Evansville metro area while maintaining a relatively affordable county median sale price of $205,000 last month. 

Check out IAR’s October Housing Report for more information; more regional and county-by-county real estate data and details are available by visiting https://data.indianarealtors.com and clicking the map on the homepage.

###

Explore Local Real Estate Markets: 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.