Indianapolis, IN 46225 Real Estate Market Report

ZIP Code: 46225
Report Date: February 2026
Market Temperature: N/A
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: 46225) is characterized by a median sold price of $218,500, reflecting the actual transaction values in the area. This price point is crucial as it indicates the current market value and recent buyer activity, which appears to be moderate given the overall conditions. The median listing price stands at $265,000, suggesting a notable gap between seller expectations and buyer willingness, which may create pricing friction in the market.

The market is experiencing median days on market of 213, indicating a slower sales velocity and potentially a cooling demand. The elevated inventory levels relative to the number of sales suggest that buyers may have more options available, leading to a more cautious approach in negotiations. Overall, the current market dynamics indicate a period of adjustment as sellers and buyers align their expectations amidst a backdrop of moderate transaction activity.

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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

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Liquidity & Velocity

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

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Market Trends & Context

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Indianapolis, IN, around 6.15% to 6.375% are slightly higher than the 5.60% average observed in mid-February 2026, suggesting property owners who locked in earlier secured a better 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 $218,500 indicates a significant gap with the median listing price of $265,000, suggesting potential pricing friction in the market.

2. With median days on market at 213, the market is experiencing slower sales velocity, which may indicate a cooling demand among buyers.

3. Elevated inventory levels relative to sales activity suggest excess supply, providing buyers with more options and potentially influencing negotiation power.

4. The median market rent of $1,397 reflects the rental landscape, which may influence buyer decisions in the current market context.

5. Current mortgage rates for a 30-year fixed loan range from 6.15% to 6.375%, which is higher than the average observed earlier in February 2026, potentially impacting buyer affordability and demand.

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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.