Fishers Indiana Rental Market Update January 2023

Hey, guys. Chris Knight here, business development manager with Red Door Property Management, bringing you your January 2023 Fisher's market report. Now, just a quick little snapshot of what we're going to be looking at here. You're going to want to keep your eyes on the average days on market. That is some large fluctuating numbers happening there. And let me be clear. I do not believe we are out of the woods. If you're at all paying attention to our market reports on a monthly basis, you have heard stabilizing market several times. So, we are currently right in the middle of the market trying to stabilize. So, we're trying to develop a trend as we develop these market reports. We're not there yet, so let's look at the average days on the market. And then also I wanted to mention a sneak peek into February numbers so that we have an idea of what we may be looking at as we get into the first part of 2023.So take a look. Let's dive right in. 

Active Homes

Hey, guys. All right. Here we are digging into the January 2023 Fishers market report. The craziness continues, as we know. So, we're going to go ahead and start with the active homes down just a few. I believe we were at 106 in December, 2022 market report. So, a few less active homes on the market. But what really is catching my attention on all of these market reports that we're running this month is going to be this middle graph. 

Median Rental Price Over Time

Some early numbers are coming in for February. I don't want us to pay too much attention to it, but it's hard not to kind of catch your eye in some of these where Fishers? It's kind of on trend from what we've been seeing here at the end of 2022, November. We are seeing a steep decline, and that's continuing here into the new year. So, no big surprise there. We are still in the midst of a correction. But what was really surprising to me, and we'll really have to see how this all shakes out, it's a bit too early to call, and we'll have to get into more of these 2023 months to really establish a trend. 

Average days on the market

But anyway, average days on the market, you'll notice 61. To me, that is shocking. Fishers is one of my favorite markets around Indianapolis. And historically, homes in the Fishers area are some of the easiest to rent to high good quality applicants due to the great school systems. So average days on the market, 61 is a bit shocking to me. But what's most shocking about that is it's up 69% from just the prior month. So up 69% from December of 2022.Now, a lot of this is probably not going to be that unusual, right? We're going to have some of the seasonality that comes along with renting property in the winter. So, I'm not overly concerned about it, but just something that we're going to want to pay attention to as we try to establish a trend with more and more of these market reports. If you're not already in tune with some of the Indy metro areas, I highly encourage you go over. Take a look at Mike Taylor's market report on Indy this month. Tell us a little bit different of a picture, which again could be signs of some stabilization here in the Indie metro area. So, take a look at that. 

Average rent

Going into the average rents. So, we are up again, this number kind of surprises me a little bit. I don't know how we can be on a downtrend with our average days on the market continuing to go up. So, I do want to continue with cautioning any landlords that have the idea that we are still going to be able to increase our rents on a year over a year with average days on the market exploding quite like this. So average rent, they are indicating we're up 1.25% from just the prior month. I'm not sure how that works out. I think that we are going to continue to see negative numbers here, but we are up 1.25%. So, keep an eye on this on the next coming months and see what we're going to see level out here. 

Price Range

We already know about our price ranges. We're very familiar with what's really attractive to a lot of the consumers in the fisheries area. And that's really for properties that rent right around the $2,000 price point, which is going to equal right out of our average rent. Right. 

Absorption rate

So over to the absorption rate. Now I really like the absorption rate because it's the overall temperature of the market in my opinion. I really like to see a 1.0 that would tell you that it would take roughly one month for us if no new homes were placed on the market today, it would take roughly one month for us to burn through our currently active marketed homes. Two months. Nothing to be alarmed about, that's for sure, but a little bit higher than my comfortability. So, Fisher's is going to be an area that we're going to want to pay attention to, at least for me, because again, it's by far one of my favorite areas expanding. A lot of growth happening in Fishers commercially, industrially and residentially. 

So, let's continue to keep an eye on this and check back in for next month's market report.