The Art of Distinction Blog by Encore Sotheby's International Realty

Across Indiana, January reflects a typical seasonal reset rather than a structural shift in the market. Transaction activity slowed in most communities compared with December, which is consistent with winter patterns when fewer homes are listed and fewer buyers are under contract. At the same time, pricing proved generally resilient: several higher-priced markets posted higher average sale prices even as deal volume declined, suggesting that quality of product and buyer selectivity continued to shape outcomes more than urgency.

Days on market moved in different directions depending on location and price tier. In many suburban markets, homes took longer to sell in January than in December, indicating a more deliberate pace and greater buyer discretion. Conversely, several lifestyle and waterfront markets saw faster closings month over month, reflecting targeted demand when the right property comes to market.

Inventory levels remained lean in most central Indiana communities, particularly in Carmel, Zionsville, and Washington Township, where months of supply stayed near or below two months. This continues to favor sellers on pricing power, even in a quieter winter period. Downtown Indianapolis stands out with significantly higher months of inventory, illustrating how market dynamics can vary sharply by neighborhood and product type.

For consumers, these trends mean that timing matters more than ever. Buyers are finding a calmer negotiating environment in many areas, while sellers who price strategically and prepare their homes well can still achieve strong results. The data reinforces that Indiana real estate is highly local: broad statewide patterns are helpful context, but outcomes depend on community, price point, and property type.

Encore Sotheby’s International Realty is a boutique residential real estate brokerage providing home sellers and buyers with a luxury level of service in Indiana and beyond. Specializing in the central, northeast and northwest regions of Indiana, the firm operates out of offices in Carmel, Indianapolis, Zionsville, Fort Wayne and Syracuse. Backed by the world-class Sotheby’s International Realty brand, clients benefit from local expertise with global reach. For all of your real estate needs, call 317.660.4444 or visit encoresothebysrealty.com.