Avon Indiana Rental Market Update December 2022
Hey, guys, here we are now talking about the Avon market update for December 2022.Now, this particular suburban market of the Indy metro area separates itself from the current data that we are seeing on the other suburban areas that I've been reporting on here with the market updates. What's causing it, I don't know. You're going to be fascinated to see what's happening with the median, the average rental price, market prices for the Avon area. So, take a look at this.
Hello again, everybody. Chris Knight here, Business Development Manager with Red Door Property Management, bringing you a very interesting market report here, at least from one graph alone. We're going to dive in and see if we can try to make some sense over this over the next couple of months. But as I mentioned there in the intro, we're seeing a lot of repetitive words, stabilization, correction in the market. That is what we find ourselves in, in the Indy metro area, which is not a bad thing, which can actually be a good thing. Stabilization can certainly be a good thing for the overall market. Right?
So, we're going to jump right in and try to buzz through this immediately here. We have 38 active homes currently on the market. If you've watched any of our other videos, you'll quickly learn that we've changed the way we're collecting our data and we are going to be tracking active homes as far as pluses and minuses over the coming months in previous years.
Median Rental Price Over Time
So median rental price over time here we've got I mean; you can't help but immediately notice this November, December, compared to other graphs in the other suburban Indy metro areas, this is completely different. This would indicate an immediate increase of rents over November, December, where in other areas we are seeing declines at this time of year. So, I'll jump over here. This is where January is only a Blip, not a line. Because we are only in January. You'll see that it is beginning to level off, without a doubt.
Now we're going to jump quickly down here to absorption rate. If you've watched any of my previous videos, this overall will tell you the overall temperature of the market. Is it hot? Is it cold? An absorption rate of 2.6 would clearly indicate tome that this is a cold market right now. Well, clearly so, right. We haven't seen the market rents adjust accordingly to have to lower our average days on the market and create a lower absorption rate. And if you're unfamiliar with what an absorption rate is, that would tell us it would take roughly2.6 months to burn through our current inventory of homes, 38 homes currently on the market. If no new homes hit the market, it would take us 2.6 months to burn through those homes. So not really a hot market here, at least currently. But I do sense a correction coming still for the Avon market. It took them a while to catch up. I'd say from what we are seeing from August, September, July, August, September on our other market reports now.
Average days on the market
Average days on the market,36 average days on the market. This is up 6% from December of last year and up13% from November of just 2022 to the prior month. So, an increase of days on the market, which is to be expected because everywhere else I've seen in the indie metro area, we're seeing a decrease in rents, which should correct the average days of market and see those ultimately be pulled down.
Average rents right now, right around 1975, up 15%.Nothing out of the usual there. We're seeing large increases from last year even with the correction we're seeing in other markets, but only up 4.2% from November of 2022. Now, I would feel better if I was already seeing a minus here, if I were to determine this to be more of a warmer market. I'm not seeing that we're still up4.2% from just the prior month. I do expect this optimism to cool here soon and we are going to see some minus numbers over the next coming months. So even for more reason to stay tuned, follow our market reports. These are huge. This is very valuable information if you continue to invest here in the Indianapolis metro area. I already gone over the absorption rate and my feelings on that.
And then the price range really just what we would here call the meat of the market. We are going to find somewhere around, and I always recommend around a three bedroom, two bath home is really the meat of the market. Needs to be right around 1600 a month in rent is what you're going to average there. So, and that is, in my experience, what I would find as well.
Hope you're enjoying these market reports. I would highly encourage you jump into some of those other ones. Compare the markets. Indianapolis market is a booming market to be involved in. I appreciate you being involved. We'll talk to you again soon.