As a calm suburb of Indianapolis, Zionsville has experienced increasing interest from home buyers, which fuels the trends of high prices and low supply. In 2023 these trends will likely continue; however, buyers and sellers should expect some cooling in the Zionsville real estate market that follows the trends of Indiana and the greater US. To contextualize the forecast for next year, here's what you need to know about the current market.
Zionsville Real Estate Market Statistics
- Properties in Zionsville sold for $712,000 on average
- Zionsville, IN homes for sale average 51 days on the market compared to 74 last year
- 131 homes were sold in August 2022, compared to 42 in August 2021
- Population growth averages 10.55% per year, compared to the national average’s 0.69%
- Residential rental prices increase 4.33% per year, compared to the national average’s 2.40%
Zionsville Housing Market Overview
Zionsville remains a wealthy suburb of Indianapolis, evident in its higher average selling price. Its affluent and exclusive reputation is part of what makes it desirable for homebuyers, especially those searching for a luxury lifestyle. These higher prices are also reflected in the cost of living, which is one of the highest in the Indy Metro Area. Despite these high prices, demand remains high for those who can afford it. This demand is reflected in the number of homes sold in August compared to last year.
Additionally, part of the demand can be attributed to Zionsville’s massive population growth. Over the past decade, the town has experienced a 94.95% growth rate, outpacing the state and national average. This population growth is likely affecting the increase in residential rental prices, given the lack of supply for demand. Indiana and Indianapolis’ housing markets have seen a cooldown, and slowing trends in Zionsville’s median price increases may indicate this is the case for the town as well.
The 2023 Forecast For the Zionsville Real Estate Market
Much of this housing regulation is due to increased interest rates for mortgages, as well as the effects of inflation. Another interest rate hike is likely on the horizon, which may cool the Zionsville housing market even more. However, those interested in investing in the area won’t have to worry about decreasing home value, as properties in the area have an annual appreciation rate of 33.97%. When deciding whether to act as a buyer in the upcoming year, reach out and work with a skilled and local professional to make an informed decision, like Carrie Holle.
2023 for buyers
However, buyers looking at 2023 may find some reprieve in the cooling market trends. Although median list prices may increase, they aren’t increasing as fast as they have in previous years. Additionally, those who do find a home in this area can count on its value appreciating, making for a good investment.
2023 for sellers
One thing sellers should keep in mind when looking into the new year is how buyers’ demand is impacted by increasing interest rates for mortgages. Those who can’t afford areas like Zionsville may look to surrounding cities and towns like Carmel, Fishers, or Westfield. Additionally, as the town’s market slows with the rest of Indiana, sellers may notice a slight impact on how long their listings stay on the market.
2023 for investors
Most properties in Zionsville are owned, which is something to consider when investing in a rental property. Despite this, the average rent for properties in Zionsville is the highest in the region. Rent is 28.5% higher than the national average and 66.8% higher than Indiana’s average. As the population increases and demand becomes scarce, it may not be a bad choice to invest in a rental property in Zionsville in 2023.