Z
illow predicts that Indianapolis will be the second hottest housing market in the US in 2025, behind only Buffalo, New York. Homebuyers in the area can expect a highly competitive market with multiple forecasts agreeing that prices will rise faster than last year. According to Zillow, home prices in Central Indiana are expected to increase by 3.4% in 2025, up from 2.8% in 2024.

    The National Association of Realtors also ranks the Indianapolis metro area as one of the top 10 housing hotspots for 2025 due to strong job growth and relative affordability. The area's job growth rate is nearly twice the US average, with over 42% of the housing stock priced below $236,000, making it an ideal market for first-time buyers and young families.

    Real estate agent Matt McLaughlin warns that hopeful buyers should be prepared for a bustling market where homes often receive multiple bids and offers at or above the listed price. The supply is low, and buyers need to have their financing in order to compete effectively.

    Despite Indianapolis seeming affordable compared to other top metros, home prices have risen 60% since October 2019, with the median sales price expected to be around $305,000 this January. However, there are some encouraging trends for Central Indiana buyers, including a slower rate of price growth and lower mortgage rates forecasted for 2025. The average inventory of homes for sale is also slowly increasing, providing more options for homebuyers in the area.