Noblesville Indiana Rental Market Update December 2022

Hey guys, thanks for checking in again. Here we are with the Noblesville Market update for December of 2022. Very interesting stuff happening if you're checking out any of our market reports. Some of the words we're using, correction, stabilization, at least my reports, ah, a lot of it may begin to start sounding repetitive, but we that is exactly what we're seeing right now, which makes these reports so interesting to stay in tune with. So not going to bother you with any one of those words right now. We're going to dive right into Noblesville December 2022 market update. 

Active Homes

Hey, guys. Thank you so much for joining me again for the December 2022 Noblesville Market Update. These are huge right now. Love giving these market reports because of all the turmoil that you may have noticed going on. And not only the sales side, but also a little bit here in the rental market as well. If you've watched any of our other market updates, you've already heard me say a couple of times we are developing a new way to track our market data. So, our active homes currently on the market is 108.We will track increases and decreases from previous months, previous years going forward, but always wanted to bring you the most accurate data. And this is where we are starting off the new year. Currently 108 new homes on the market. Now, talking about the turmoil I was mentioning, if this graph indicates anything, it's that this is going to be our average market rip prices over the last twelve months. You'll see a wild swing here. This is very interesting, but as you are noticing, we are seeing back into a downtrend of what I consider more of a stabilized market. 

Median Rental Price Over Time

We're right in the middle of a correction, if you will. So, with market rents exiting the previous year, right around 1785, what we will notice is we seem to be even leveling off. This is where we are January of 2023.So there's no line, just a dot. We are only in January. So just above 1785, if not leveling off either, maybe ticking back up a little bit. So again, I'll say it again, entering a stabilized market is where I think we will find ourselves over the next couple of market reports. 

Average days on the market

So, onto the next box here. Average days on the market, 39. Now this is high, not to be unexpected. Again, with stabilization on the market, we were coming out of a time where we were marketing rents much higher based on the market we were seeing over the summer. As we exit that market, it takes time for us to negotiate those rents down to hit a level that's going to generate the activity level necessary to place tenants in a quicker manner. So, where you're just in the middle of a decrease until we hit that right number that's going to generate that activity. Current days on the market, 39 as an average. That's up 22% from December of last year and even yet up from 8% just the prior month. So again, that number, these percentages I do expect to go down and at some point, obviously go into the negative territory once we are able to get to the stabilized market. 

Average Rent

Average market rents. Now this is great. This is high for the Indianapolis metro area. So, Noblesville is a great rental market without a doubt. Average rents hitting right around 1760 in the December of 2022.This is a higher. And here we go. This is going to indicate exactly what I was mentioning just prior. So, this is going to indicate 6.6% higher than the prior year. But again, we are down 2.8%as we already knew this, right? We have a down slope up here, so we already saw this coming before we got to this category. But it's down 2.8% from the prior month. Although this is indicating January might see an uptick. So, we might see a positive here from just the prior month as we get into January. But I don't suspect that we are out of the woods yet. So, I do suspect we will see a couple of months coming forward with still a little bit of a decrease in our percentage month over month until we officially level out, but at least some optimism for December to January of next year.

Absorption rate

Lastly, I want to talk about the absorption rate. Now this is really my temperature of the market. Really. Is it hot, is it cold?1.0.I would consider anything really close to a 1.0.That means one month. If we were to place no new homes on the market to burn through 108 homes, it would take us roughly 30 days. So, one month. So, I would consider the market quite warm right now. This is a good market. Our average days on the market are going to continue to come down a little bit. Absorption rate of 1.1 in my opinion is indicative of a healthy market. 

So that's going to conclude our Noblesville market update for December 2022.Stay tuned. This is bound to be a fun ride over the next couple of months. Be sure to check back in as we upload our January and February market report updates. Can't wait to see it. You.