Fishers Indiana Rental Market Update December 2022

Hey, guys, welcome back. Chris Knight here, business development manager with Red Door Property Management here, getting ready to dive into our December 2022 Fisher's market report. As we dive into this, we all know if you've watched any of our previous markets market reports, we have been on our way to entering a market stabilization or market correction, if you will. And that's exactly what I think that we find ourselves in. And I think the data will clearly indicate that going into January, I think, at least in this particular market, and if you look at any other of our available market data, it doesn't really tick with it. But we are seeing a little bit of an uptick in January rents, although I don't expect that to be the trend over the coming months, I would expect that optimism to fail and we're going to see some more declining rents as we really get to the bottom of this correction. So, without further ado, let's, let's jump right in. 

Active Homes

Hey guys. Back with my favorite type of videos is going to be these market reports. I absolutely love them. All. The data that comes out of this just kind of tells us what direction and what we need to be thinking about as we get into our investment journey. So, let's go ahead. Let's dive right in here. So, active homes currently on the market. We are using a new method for developing these reports, a new data tracking method. And as we continue throughout the year, we'll have whether this number has increased or has gone down from the previous month or year. So currently on the market, we've got 104 homes currently on the rental market in the Fisher's area. Now, that is as of today, but most of this data is going to compare from December to November or December to December of 2021.

Median Rental Price Over Time

So going into the median rental price over time. So, you'll notice here the quick fluctuation we had from June all the way into October. If you've paid it all attention to the real estate market, you will have noticed the fluctuation that's been going on over the last several months. So, for example, if you were to put a home on the market during that June, July, August time frame, you could put nearly whatever market rate you wanted on the property and have a tenant in no time. That is not the market we are in or headed to. I do, however, see us entering more of a much more stabilized market, which ultimately is a positive thing for everyone involved. So, one thing I did want to point out as we look at this though, as well, is that this will show and as we get into January's report next month that we are going to see an uptick in the average monthly rent as we get into January. You'll see, where we are right now is 1995.We will be closer to, if not just over the 2000 points come January.

Average days on the market

So, let's move on average days on the market. So, we're seeing currently average days on the markets around 36. This is up 6% from the prior year, December of 21, and then up just 3%from November of 2022, just the prior month. And this will kind of indicate what I was mentioning just a moment ago, that I do believe we are entering more of a stabilized market, although we have more of an average day on the market from the prior year, up 6%. This number going down and we're only up 3%from the prior month I think is a clear indication that we're going to reduce the average days on the market, at least for the coming months. 

Average Rent

Now let's jump down here to the average rent, 1995, which of course is up from 1.5% in December of 2021.But although our graphic is missing it, this is down 2.8% from November of 2022.And we'll look back up here and we'll see November going down into December. So, we're down 2.8% from November of 2022.And this again is we, we find ourselves right in the middle of what we would consider a market correction. So, we and although current data that we are pulling is leaning towards seeing an uptick in the average monthly rent once we hit January, I don't believe that will be the end of our decline of average monthly rents as again, we do find ourselves here right in the middle of a correction, I do believe. So, I would not be surprised if we do see those slip just a little bit more until we are more stabilized. 

Price Range

Let's go into price range here of what we're seeing. I'm always telling investors in the Fisher's market, certainly three bedrooms, two bath is really what we find to be the meat of the market. And the real meat of the market is going to be as far as price, .3 bedroom, two bath somewhere in the 2000 a month.1995 is really just the meat of the market absorption rate. Now this is going to be the temperature of the market.

Absorption Rate

Absorption rates that I like to see are around 1.0.That would tell you that it would take roughly one month to burn through the current inventory on the market. So, if we didn't add any new properties to the market, it would take roughly 0.9months to run through the current inventory. So, this is indicating that we are going to see fewer average days on the market. 

So that's our Fisher's December 2022 market update report. Can't wait to get into January. I know we're going to see some big changes here over the next month, so it's always exciting to see what's going on. I would also highly encourage, if you haven't already, check out what's going on in our Indianapolis market report. It is wildly different. The slope is something that should be noted for sure. So,  check back in with us next month for the January 2023 the New Year Market Update report. We'll see you then.