Noblesville Indiana Rental Market Update February 2023

Hey, guys. Happy March madness. I'm glad you found a few minutes to take a break from all the basketball on TV to take a look at what the market in Noblesville is doing right now. So, if you're not already liked and subscribed, you definitely want to do that. My name is Chris Knight, business Development Manager with Door Property Management, and these market reports are hot, so be sure to like and subscribe so that you're being alerted every time one of these new market reports comes out. So, I mean, with the volatile market we find ourselves in, this data is ever changing and super important to stay on top of the market to see where your investment dollars could be placed to generate you the best ROI on your investment. So, let's go ahead. Let's jump right into this. 

Active Homes

All right, guys, let's dig right in. Love these things. Love all the information, the data these things provide. So, let's take a look. Active homes in the market currently in Noblesville.73 homes currently on the market. 

Median rental price over time

If we take a look here, I love this graph because it does give us a little bit of a peek into the future, as I like to say, as we see where we're going to land come March. So, as you can see, we're pretty flatlined hereat the start of the year, which is really not where we are telling our current owners. If you're at all a current owner with us and had any discussions with me, you've probably heard me say that a lot of the comps and comparable are comps that are being used from the previous summer right here. If you're running a current rental analysis and it is using any numbers from the summertime frame, you're seeing numbers up here. And you're probably wondering, well, why based on the comps, if the comps are telling me I should be listed at 1800 right now or close to1900, why are you telling me, Mr. Property Manager, why should I be listening to your advice and list my property that's coming up on the market next month at 1750? Well, that's because the analysis that's being pulled is using these numbers right here. That's a bad indicator. If you stick with those numbers and you list way up here, guess what you're going to have? You're going to have a much larger average days on the market, and you're going to reduce your price anyway until you can place a tenant. So that's very important to note if you're looking at a rental analysis that's being run for your property that's going to be placed on the market come March, April, or May. So be sure to be in tune with that. 

Average days on the market

Now, jumping in average days on the market, this is huge with all of our market reports this month. If you've looked at the Indianapolis Market report, you see even a more drastic number there. And this is just telling me that a lot of property managers are not catching up or a lot of landlords are not catching up with the need to get ahead of the market correction. So, they should be decreasing their prices slightly, not increasing. They're still trying to ride the wave back from the summertime of 2022 and that's just not where we are. You've got to get ahead of that correction to reduce your overall days on the market. So, as you can see right here, we are 45% of an increase on our average days of market from just the prior month, but an astonishing 136% longer timeframe on the market than this time last year. And that's not surprising, right? We were under a very hot market starting at the beginning of last year and certainly into the summer. The sales and rental market were absolutely booming, but very important. I know that's not the market that we're currently in. Now, I can't stress enough the importance of running that rental analysis and understanding that that's probably not exactly where you should be listing your property. 

Average rent

Now, the average rents are, again, pretty stagnant, as we can see here. It's just flatlined out. Now, I do expect this to go down slightly. I mean, we are up 10% from February of 2022 and that's great, but I do expect this to take a downturn just slightly because 45 average days on the market is just not where you want to be. You certainly want to see closer to our owners, we certainly want to stay closer to the 20 days. That's about a healthy market of an average downtime or vacancy time rate, certainly no more than a month or 30 days as average days on the market. So that's really what you want to strive to. And it looks like in the Noblesville markets, we need to decrease slightly to hit more of that time frame to have a healthy ROI. Now, just looking at the price ranges, you'll see, not much has changed here from our previous months. But the meat of the market is right around the $1,700 a month price point. Your three bedroom, two baths are certainly where you want to be. 

And then lastly, I just want to mention a change that we're going to be making on these market reports going forward. This absorption rate, which does provide some valuable data, that is going to be disappearing and we are going to be adding what the average cost of a property in this particular market is going to look like. So, we hope to include what it looks like, a kind of a swing in the market, what it would look like to get on the bottom end and what it looks like at the top of the market, in case you're interested in possibly investing into this particular market. So, be on the lookout for that change to come. I think it's going to be super valuable information that's going to be provided going forward. So, as we get into the next couple of months, let's keep an eye on our average days on the market. Certainly. And then obviously, our average rents, which we would love to see continue to increase. The definite need here is for some more slightly decreases to get our average days on the market to a healthier place. So that's our current market update