Indianapolis HousingGauge — July 13, 2026 | YELLOW 55

Welcome to the Indianapolis HousingGauge, your weekly local market report for the week of July 13, 2026.

Here is the headline. Indianapolis's HousingGauge score is 55 out of 100, which puts the market in the YELLOW zone. Conditions are broadly stable, but financing remains expensive.

Three developments stand out this week.

First: Homes selling more slowly. The median home takes 27 days to sell, 50.0% longer than a year ago.

Second: Inventory up 9.1% year over year. 3,074 homes are listed for sale, equal to 3.1 months of supply.

Third: Mortgage rates up 0.12 points in three months. The 30-year fixed rate averages 6.49%, versus 6.37% three months ago.

Now, what is behind the score?

Mortgage Conditions scores 39 out of 100. The 30-year fixed rate averages 6.49%, up 0.33 percentage points over six months. Financing remains expensive, limiting affordability for leveraged buyers.

Supply & Buyer Leverage scores 49 out of 100. Inventory is 9.1% higher than a year ago (3,074 active listings), with 3.1 months of supply. Homes take a median 27 days to sell at 98.1% of list price, and 35.6% of listings have had a price cut. Negotiating leverage is fairly balanced between buyers and sellers.

Monetary Conditions scores 72 out of 100. The real policy rate is 0.58%, 0.51 points below the estimated neutral rate (r-star) of 1.09% — a accommodative stance. The fed funds rate is unchanged over six months. Policy is a tailwind for credit conditions, though it does not by itself move home prices.

Demand Trend scores 37 out of 100. Pending sales are 4.1% higher than a year ago and closed sales are 9.8% lower. Days on market are 50.0% longer than a year ago. Buyer demand has softened.

Valuation & Affordability scores 85 out of 100. The median home costs 3.9 times the median household income. Principal and interest on a typical purchase would take 23.3% of that income at current rates. Inflation-adjusted prices are 3.2% lower than a year ago. Valuations look comparatively reasonable.

Local Economy scores 62 out of 100. Local unemployment is 3.3% and employment is down 0.1% year over year. The local job market is steady.

Rental Economics scores 65 out of 100. A year of median rent equals 6.4% of the median price (a price-to-rent ratio of 15.5). Rents are up 1.8% year over year. Rental economics are comparatively strong.

The score is down 2 points from last week's report (57 to 55). Over 13 weeks the score is unchanged at 55. The largest contributors were Demand Trend (+3.2 points) and Supply & Buyer Leverage (−2.6 points).

So what would move Indianapolis into the green? It would take several changes together: 30-year mortgage rate falls below 5.50% (now 6.49%); pending sales grow more than 15.0% year over year (now +4.1%); the Fed cuts more than 0.70 pts over six months (now −0.02 pts); months of supply rises above 5.1 months (now 3.1 months); mortgage rates fall more than 0.40 pts over three months (now +0.12 pts); and policy gap (real policy rate minus r-star) narrows below −1.00 pts (now −0.51 pts).

And what could make conditions worse? Watch for these together: 30-year mortgage rate rises above 7.25% (now 6.49%); pending sales fall more than 6.0% year over year (now +4.1%); the Fed raises rates more than 0.50 pts over six months (now −0.02 pts); policy gap (real policy rate minus r-star) widens above +0.25 pts (now −0.51 pts); and months of supply falls below 1.6 months (now 3.1 months).

That is the Indianapolis HousingGauge for this week. The HousingGauge score describes market conditions. It is not a recommendation to buy or sell, and it is not individualized financial advice. For charts, sources and the full methodology, visit housinggauge.com. Thanks for listening.