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 $299,500, indicating a stable transaction environment amidst elevated inventory levels. While the specific year-over-year price trend is unavailable, the current median sold price suggests a relatively balanced market, characterized by moderate sales activity. The median listing price stands at $329,999.50, which highlights a notable pricing gap between listings and actual sales, potentially indicating seller expectations that may not align with buyer sentiment.

The market is experiencing 197 days on average for properties to sell, suggesting slower sales velocity. This extended time on the market may indicate a shift in buyer preferences or affordability challenges, particularly for lower-priced homes. Despite these challenges, the local economy remains robust, attracting new residents and providing a positive backdrop for future market activity. The overall market temperature is neutral, suggesting a balance between supply and demand, though elevated interest rate pressure continues to influence buyer behavior.

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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 IN market at 5.75% are significantly lower than the average rate of 6.56% seen earlier in February 2026, presenting a cost opportunity for recent borrowers.

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 $299,500 reflects stable transaction activity in the market.

2. With a median listing price of $329,999.50, there is a significant gap between asking prices and actual sales, indicating potential pricing friction.

3. Properties are taking an average of 197 days on market, suggesting slower sales velocity and possibly a shift in buyer sentiment.

4. The market temperature is currently neutral, indicating a balanced environment between supply and demand.

5. Elevated interest rate pressure may be impacting buyer affordability and overall market dynamics.

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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.