Many REALTORS® are breathing a sigh of relief that 2022 is behind us – but Indiana’s housing market held up better than most of the U.S. last year: Statewide home sales (88,868) finished 11% below a record-setting 2021 (and less than 2% versus 2019) while NAR reports an 18% year-over-year drop-off nationally. (Check out our 2022 wrap-up report.)

The market was more balanced, but tight inventory conditions still favored sellers:

Homebuying dollars still go further in Indiana:

More reason for optimism looking into 2023:

As demand recovers and buyers return to the market, limited housing inventory remains Indiana’s biggest barrier to homeownership. IAR turned to Fourth Economy Consulting, a national economic development consulting firm, for an outside analysis of housing supply and the potential impact on population growth and business investment.   

Indiana has added 400,000 private sector jobs and 300,000 residents living in more than 160,000 new households since 2010. However, less than 150,000 new housing units have been brought to market in that time, leaving an estimated deficit of 30,000 units.

The Fourth Economy report stresses that a continued shortage of workforce housing could hinder the state’s future economic development efforts. IAR 2023 President Lynn Wheeler summed up the need for to prioritize residential growth as a state-level priority:  

“Building less than one new housing unit for every two new jobs created in our economy isn’t a sustainable ratio,” Wheeler said. “Housing supply is straining our business climate, cost of living and quality of life.”

Read IAR’s overview and announcement of the Fourth Economy study

Download the full report: “Profile of Indiana’s Housing Development Finance and Promising National Practices”

Read CEO Mark Fisher’s commentary on the connection between housing and economic development (INside Indiana Business)

The Fourth Economy analysis comes as lawmakers settle into an odd-year long session of the Indiana General Assembly, which includes negotiating a new two-year state budget. REALTORS® participated in the legislative Housing Task Force last fall which put housing supply issues squarely in the spotlight for state-level investments and policy solutions this year.

One top priority is addressing the rising cost of local infrastructure associated with new housing projects. On Tuesday, the Government & Regulatory Reform Committee unanimously passed HB1005, which creates a new infrastructure revolving loan fund to tackle this barrier to residential development.

Read more about the bill and its REALTOR® backing, with comments from IAR’s Maggie McShane.

Check out IAR’s full 2023 Legislative Agenda – Rebuild and Renew.

Our policy blueprint starts with four cornerstones – click above for specifics on each:

Support housing and economic development for thriving communities;

Protect taxpayers and private property rights;

Enable good government; and

Defend consumers and the REALTOR® bottom line.

The New Year also means we’re more than halfway through the current Continuing Education cycle – and this year, the timeline is even tighter because of license renewal deadlines: You must complete all required CE before submitting your renewal by June 30th!

Fortunately, your state association has you covered with member benefit CE through www.RECP.org.

Click below for an overview of the current 12-hour package of CE courses available as a member benefit to our REALTOR® members, along with a step-by-step guide to getting started.

Remember – Indiana’s ongoing CE requirement for real estate brokers doesn’t kick in until two years after licensing; if this is your first license renewal, you may not have CE hours to complete before filing your renewal.  Here is more information for those licensed in the last two years: https://indianarealtors.com/events/postlicensing-course/.

Did you miss last week’s Legal/Legislative Update webinar? Hear more about the legislative session along with the latest developments from the Indiana Code to national class-action litigation on broker compensation: the recording is now available here.

Prompted by member follow-up questions about additions and revisions to IAR’s statewide transactional forms, IAR’s Legal Department has also prepared a Q&A covering the new (optional) Post-Closing Possession Agreement, changes to the Purchase Agreement, clarifications to the Buyer’s Inspection Response and more – check it out here.