As 2025 comes to a close, Indianapolis buyers are asking the same question: what does the end-of-year data actually tell us about where the market is headed?

December is a unique month in real estate. It strips away the noise of peak season and shows what’s really happening when only serious buyers and motivated sellers remain. And the December 2025 numbers tell a clear story about pricing, inventory, and buyer leverage heading into 2026.

Here’s a clean, data-driven snapshot of what’s happening — and what it means if you’re planning to buy in the months ahead.

Why December Data Matters More Than You Think

December activity is driven by intent, not hype.

Buyers shopping now are typically:

• Rate-aware and financially prepared

• Relocating for work or family

• Timing purchases for tax or lease reasons

• Looking for leverage

Sellers listing in December are often:

• Motivated

• Flexible on terms

• Open to concessions

That makes December data one of the most honest indicators of true market balance.

Home Prices: Flat to Slightly Soft — By Design

As of December 2025:

• Indianapolis home prices are largely flat month-over-month

• Year-over-year appreciation remains modest (2–4%)

• Price reductions are more common than in spring/summer

This isn’t a crash — it’s normalization.

Seasonal softness combined with rate sensitivity has kept price growth in check, especially for:

• Homes over $400K

• Properties needing updates

• Listings priced aggressively in Q3/Q4

Well-priced, move-in-ready homes are still selling — just without bidding wars.

Inventory: Quietly Improving

Inventory traditionally rises in late fall, and December 2025 followed that pattern.

What we’re seeing:

• More active listings than December 2024

• Fewer “panic sellers” than earlier in the year

• Better selection for buyers under $350K

• Slower absorption in suburban luxury segments

This gives buyers more room to negotiate — especially on homes sitting 30+ days.

Days on Market: Buyers Have Time Again

One of the biggest shifts buyers notice in December is pace.

December 2025 trends:

• Average days on market increased compared to spring

• Buyers have more time for inspections and due diligence

• Sellers are more responsive to feedback

This is a major change from the rushed decision-making of prior years.

Mortgage Rates: Stable, Not Spiking

Mortgage rates in December 2025 remained relatively stable, which helped keep buyer confidence intact.

Key takeaways:

• Rates are no longer climbing rapidly

• Buyers are adjusting expectations and budgets

• Rate buydowns and seller credits are more common

• Locking strategies matter more than timing perfection

For buyers, stability matters more than chasing the lowest possible rate.

Buyer Leverage: Quietly at a Yearly High

December is when leverage subtly shifts toward buyers.

Advantages buyers have right now:

• Fewer competing offers

• More flexible sellers

• Increased willingness to offer concessions

• Stronger negotiating position on repairs and credits

This doesn’t mean lowballing — it means strategic offers win more often.

If you’re considering a year-end purchase, this guide pairs perfectly:
https://rootsrealty.co/blog/holiday-season-home-buying-indianapolis

What This Snapshot Says About Early 2026

December trends often foreshadow Q1 behavior.

Based on current data, expect:

• Continued price stability into early 2026

• Gradual buyer competition returning in spring

• Sellers becoming firmer once activity picks up

• Negotiation windows narrowing by March/April

Buyers who act before spring often capture better terms — even if list prices are similar.

How Buyers Should Use December Data Strategically

Smart buyers use December insights to:

• Set realistic budgets

• Target motivated sellers

• Prioritize homes with longer DOM

• Ask for concessions instead of price cuts

• Lock favorable terms before competition increases

December doesn’t reward speed — it rewards preparation.

What About Investors Watching the Market?

While this snapshot focuses on buyers, investors also track year-end trends closely.

December data helps investors:

• Evaluate pricing momentum

• Assess inventory pipelines

• Plan acquisitions for Q1

• Rebalance portfolios

For a full investor-focused year-end breakdown, see:
https://rootsrealty.co/blog/year-end-portfolio-checkup-indy-real-estate-investors-2025

FAQs: December 2025 Indianapolis Housing Market

Is December a good time to buy in Indianapolis?

Yes — motivated sellers and lower competition often create better terms.

Are prices expected to drop after the holidays?

Not significantly. Most forecasts show stability rather than declines.

Do sellers negotiate more in December?

Typically yes, especially on credits, repairs, and closing costs.

Will inventory increase in early 2026?

Likely yes — spring listings traditionally increase supply.

Should buyers wait for spring?

Only if selection matters more than negotiation power.

Final Thoughts

December 2025 confirms what many buyers are feeling: the Indianapolis market is calmer, more balanced, and more negotiable than it’s been in years. Prices are stable, inventory is improving, and serious buyers have room to move — especially before spring competition returns.

If you’re considering a purchase in late 2025 or early 2026, this is one of the most strategic windows to act.

The Roots Realty Co. team is here to help you analyze data, identify opportunities, and make confident decisions in any market.

Buyer Resources: https://rootsrealty.co/buy/buyer-resources
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