Indianapolis, IN 46205 Real Estate Market Report

ZIP Code: 46205
Report Date: February 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

As of February 2026, the real estate market in Indianapolis, IN (ZIP: 46205) reflects a median sold price of $299,900, indicating a stable yet competitive environment. The neighborhood has decreased 8% since 2022, suggesting a softening trend in home values. Despite this decline, the market appears to be transitioning towards a balanced state, with elevated inventory levels and a neutral market temperature, which may indicate a potential for stabilization in pricing as demand adjusts to current supply conditions.

The median days on market stands at 186 days, reflecting slower sales velocity and suggesting that properties may require more time to sell. This extended time on the market, coupled with the current median listing price of $315,000, highlights a notable pricing gap that could lead to further adjustments in seller expectations. Overall, the market is characterized by moderate transaction volume and excess supply relative to sales activity, which may influence future pricing dynamics as buyers navigate their options.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

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Property Taxes

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Liquidity & Velocity

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Market Trends & Context

Understanding Market Temperature

A Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in the Indianapolis market average around 6.87% compared to recent 2026 averages near 6.12%, meaning property owners locking in earlier secured a more favorable rate.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. The median sold price of $299,900 indicates a softening trend, having decreased 8% since 2022.

2. With a median days on market of 186 days, the market is experiencing slower sales velocity than in previous periods.

3. The median listing price of $315,000 suggests a significant pricing gap compared to the sold price, indicating potential pricing friction for sellers.

4. Current market conditions show a neutral market temperature, implying a balanced environment where neither buyers nor sellers hold a distinct advantage.

5. Elevated inventory levels relative to sales activity suggest excess supply, which may lead to further adjustments in home prices.

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Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.