Anderson Indiana Rental Market Update January 2023

Hey, guys, welcome back. Chris Knight, business Development Manager with Red Door Property Management, bringing you another market report. This one being for Anderson, an Expanding investor market. January 2023.Two areas that we're really paying attention to this month is going to be the medium and price graph as well as the days on market. So, let's pay attention to both of these. Anderson has really shown a stabilized market for the latter part of last year, and the average days on market are looking really attractive as we get into 2023.So take a look at that and let's dive right in. 

Active Homes

All right, let's get to it. Let's jump into the Anderson January 2023 market reports. I was very excited about this one. Interesting stuff has been happening in the Anderson market. Not only that, it's an expanding investor market as well. So, let's get to it here. Active homes, 102.This is a similar market to Noblesville, really, even the Fishers, as far as the number of active homes on the market right now. So, I mean, all these numbers are pretty correlate, pretty well together. So, 102 active homes on the market. What I really have been trying to watch in all these market report updates is right here, some early February numbers. I'm always trying to look into the future and see what's going on. And we are also trying to establish a trend here as we're doing more and more of these market reports. Very volatile markets, as you'll continually hear me say, on all these market reports. But that's the reality of it. That's what we find ourselves in. We're trying to find some stability in the market, and nobody really knows what that's going to look like right now. Although, in my opinion, I believe that's going to look like slightly lower rents to come just to correct year over year, higher rents, but lower rents for month over month to stabilize the market out. 

Median Rental Price Over Time

So here we go. Early February. Numbers coming in. We do see that decrease coming that I am expecting in a lot of these areas. In fact, the only one I think this month we saw something different was if you pull up the Indianapolis market report was kind of showing some different angles. So, we're in Anderson, though, so let's stay here. Very interesting. You'll see, this is all flat throughout the latter part of last year, and Anderson really not feeling it until coming into the early part of this year. So, it'll be very interesting to see what happens in next month's Anderson February report. 

Average days on the market

So, jumping over to average days on the market, this is pretty awesome, really.21 days on the market is a very short time. Its investors dream to have an average day on the market is 21 days. That's wonderful. It's down 55%, which is a dramatic decrease, obviously. So that does not indicate a stabilized market when you have swings of that nature. But nonetheless, it's 21 days on the market, which is a really good sign for the Anderson market. 

Average rent

Now, getting into the average rents currently for the properties on the market, $899, down just a little bit from December. Nothing unusual there. It's not even a full percentage decrease. And we're still up, like I was saying, year over year, still up 1%.Now, as we begin to stabilize, I think that we'll begin to see this level out. In fact, it'll probably come up just slightly. We will probably land somewhere around 900 to 950 in a stable market, being our average market rent if I was to make a prediction. So, we'll see where that turns out over the next few months. Now, price points here as far as properties that are actual rentals in the Anderson market, a number of those are renting right at 800 a month in rent. So that is kind of like the sweet spot. 

Absorption rate

And our absorption rates, again, I love kind of using this as the temperature of the market. An absorption rate of three doesn't necessarily indicates an unhealthy market. It's definitely higher than I would like to see. If you're unfamiliar with what an absorption rate is, it would indicate how many months roughly it would take to burn through our current inventory if no new homes were to hit the market. And that would be roughly three months to burn through 100 into homes. I really like to see that around 1.5 as an absorption rate to indicate a more stabilized market. But right now, we are at an absorption rate of three. 

So that's our market report for Anderson, January 2023.I love these market reports. Stay tuned. Follow along as we get into February and March. As we get into the spring cycle, things begin to pick up. Also, I want to mention before signing off here is the average rent decreasing is pretty standard, right, for the seasonality. So, as we get into February, March, April, spring time frames, we really should have somethings leaning towards a more stabilized market. Very, very excited to see what those numbers are going to indicate. So, stay tuned to next month's market report. Thanks.