Indianapolis Housing Market

Buyers in Indianapolis had more homes to choose from this summer, and many found a little extra room to negotiate. Inventory grew faster than the national benchmark, but home prices still moved higher from a year ago.

The Indianapolis housing market saw a stronger July, with 3,001 homes sold across the metro. That was a 5.5% increase from a year earlier and a notable turnaround from July 2025, when sales fell 1.9%.

Buyers also had a little more negotiating power. Homes sold for 96.6% of their asking price, leaving about 3.4% room for negotiations. Even so, demand remained steady.

A growing population and steady job growth continued to support homebuying demand. The Indianapolis metro's population rose 0.8% over the past year, compared with 0.3% nationally. Job growth also reached 0.8%, well above the national rate of 0.1%.

Home shoppers had more options in July. The number of homes for sale climbed 11% from a year earlier to 8,410 listings, an increase of 835 homes.

That growth outpaced the national trend. Across the country, inventory rose 4.4% over the same period. New listings in Indianapolis also increased 8.9%, adding even more homes to the market.

At the same time, the metro continued to rebuild its housing supply. Inventory levels exceeded pre-pandemic levels, with the number of homes for sale 4.8% above July 2019 levels. That's a sign the market has largely recovered from the inventory shortages that have defined much of the past several years.

View the latest homes for sale in Indianapolis.

The median home price reached $329,000 in July, up 1.2% from a year ago. That's a smaller increase than the 2.6% gain seen nationwide.

In dollar terms, the typical home sold for $4,000 more than a year ago. Nationally, the median price increased by $10,000.

Even with those gains, Indianapolis remained one of the more affordable housing markets in the country. The metro's median home price was 17.8% below the national median of $400,000, which may help attract buyers seeking lower costs.

Price trends varied by property type. The median price for a single-family home held steady at $335,000. Townhome prices fell 4.8%, while condo prices rose 3.8% from a year earlier.

The median home sale price in Indianapolis increased by 1.2% compared to the same time last year, while the national median price rose by 2.6%.

Indianapolis median home prices rose by $4,000 year over year on a nominal basis in July to $329,000. Meanwhile, the national median home price increased by $10,000 to $400,000.

Indianapolis was the 34th highest-priced housing market among the top 40 largest markets last month. The Indianapolis median home price of $329,000 was 17.8% below the national median home price. Indianapolis' median home price in July is the highest observed price for any month in the market.

The median price of Indianapolis single-family homes remained $335,000 over the past year, while the median townhome price declined by 4.8%, and the median condo price rose by 3.8%.

The number of homes for sale in Indianapolis increased by 11% in July compared to the same time last year, while national homes for sale rose by 4.4%.

Indianapolis homes for sale rose by 835 year over year in July to 8,410 homes for sale. Indianapolis ranked 12th, on a percentage basis, for the annual change in the number of homes for sale among the top 40 U.S. markets in July.

Indianapolis homes for sale were above their pre-pandemic levels in the month of July. Indianapolis homes for sale were 4.8% above the July 2019 total of 8,022.

Indianapolis single-family homes for sale grew by 12.4% to 7,539 in July. In comparison, townhomes for sale fell by 12.4% to 241, and condos for sale increased by 6.8% to 630.

The number of home sales in Indianapolis increased by 5.5% in July compared to the same time last year, while national home sales rose by 2.9%.

Indianapolis home sales increased by 157 year over year on a nominal basis in July to 3,001. For context, 2,844 sales closed in Indianapolis in July 2025.

Indianapolis ranked eighth for the annual change in home sales out of the top 40 U.S. markets in July on a percentage basis. This year's July increase of 5.5% compares to the 1.9% year over year decrease in July 2025.

Indianapolis single-family sales increased by 7.5% in July to 2,765. In comparison, townhome sales fell by 16.3% to 72, and condo sales fell by 12.3% to 164.

For questions and commentary about this report:

Blaise Tomazic, Director of Market Analytics at CoStar and Homes.com, is available for interviews to provide expert insights on this data and the broader residential real estate market.

Blaise Tomazic

Director of Market Analytics

Homes.com

btomazic@costar.com

Homes.com releases preliminary figures on housing trends on a monthly basis. Although these numbers may change slightly once all transactions are accounted for, they provide an early indication of home price appreciation, inventory changes, and sales volume in Indianapolis during July 2026.

For most markets, geographical coverage consists of the Census-defined Core-Based Statistical Area (CBSA). Data for San Francisco, Los Angeles, Miami, and New York is at the Metropolitan Division level.

Definition of Sale Prices

Median home price is the midpoint sale price of homes closed during each month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.

Definition of Inventory

Inventory is the number of unique active listings that were for sale during each month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.

Definition of Home Sales

The total number of closed home sales on the MLS during the month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.

Definition of Days on Market

The median number of days from initial listing to closing of properties whose closing occurred during the month. This data includes detached, attached, and condominium homes. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.

Definition of Months of Supply (MOS)

Months of Supply (MOS) is equal to active listings divided by homes sold in a given month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.

Definition of Sale to List Price Ratio

The sale-to-list price ratio is the ratio of the sale (closing) price to the original list price, whose closing occurred during the month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.

About the Homes.com Market Analytics Team

The Homes.com Market Analytics group is a team of experienced analysts embedded in nearly 30 markets across North America. These experts reside in and regularly visit the markets they cover, providing local expertise and a national perspective on all sectors of real estate: residential, office, industrial, retail, and multifamily.

About Homes.com Analytics Data

The Homes.com analytic data is compiled by the CoStar Analytics team, the largest and most experienced analytics team in the real estate industry. The team consists of over 50 economists, analysts, and data scientists, who collectively have more than 900 years of real estate experience and over 30 advanced degrees. Analysts on the team live in and around the markets they cover, enabling them to build deep local knowledge and unique insights.

The data set being used by the team is one of the most comprehensive and robust in the industry. It spans all 393 metropolitan markets, 542 micropolitan markets, and over 35,000 local neighborhoods in the U.S. The data set is sourced from almost 500 Multiple Listing Service (MLS) providers around the country, as well as public record data from each market, and is supplemented by proprietary data collected by CoStar's team of over 2,000 researchers. It includes a complete inventory of all homes in the U.S., including homes for sale, homes for rent, new construction homes, as well as sale comps and rent comps.