Fishers Indiana Rental Market Update February 2023
Hey, guys. Happy March madness. Chris Knight here, business development manager with Red Door Property Management. We are about to take a look at the Fisher's February 2023 market report. We're going to look back at February so that we can get an idea on what to expect over the March April time frames. As we get into spring, we expect things to open up a little bit. Do the numbers reflect that? I don't know. I'm going to not waste any more time with words. Go IU. Let's dig in.
Okay, I'm going to dig into this Fisher's market report here. March 2023. I'm going to try to keep my cool and just go box by box. So, let's take a look here. Active homes. Currently 82 active homes in the market. That's pretty standard. I wouldn't consider this a surplus. This is looking good going into the spring months.
That follow median rental home prices. I'm going to get into this a little bit more as we talk more about this box here. This is the elephant in the room.
Average day on the market
Average days on the market, we're looking at 83 average days on the market. This, to me, is a little bit alarming. This isn't the average days on the market that we at Red Door have been personally experiencing, but nonetheless, a very big indicator of the current market that Fishers is experiencing. Now, what I find most strange about this is we've got our little blip here for March. So, this kind of gives us a little look into the future.
Again, this is a February 2023 report. So, based on the prior month, but looking at March, you will see a steep incline in the average rental price. And this is just surprising to me when we are seeing nearly a 40% increase from just the prior month alone on the average days of market, which, if you know anything about the rental market, if you're going up in your average days on the market, you need to be reducing rents in order to reduce your average vacancy time frame. Right? So, we're at Red Door, and maybe this is a clear indication of why we're not experiencing the average days on the market that the overall market is. We are informing our landlords of the market trends and trying to stay ahead of the average rents not increasing at the steep incline that we're seeing here because it's just not manageable. Right. I mean, you may get an additional $100 per month in rent, but you're going to increase your vacancy time considerably, which in the long run is really going to take a hit on your ROI. So, we'll go down here next box.
Average rents right around 2000 a month. This does show down. It's really just remained streamlined from the prior month. Not really an increase or decrease. But as we come out with next month's report, we're obviously going to see an increase in the average rent. I cannot wait to see what happens to the average days on market when we get into reporting time for April on March's Market Report.
So price range we all know about the price range here in Fishers has not changed much. I mean, really, the meat of the market is right around 2000 a month. Our average rents. Of course, that's the kind of area you want to shoot for a three bed, two bath, right around $2,000 a month. But if you have a property in this market or you're considering purchasing in this market, it's an absolutely wonderful market to be in, primarily driven by the amazing school systems. But if you do have a property in this market, I would not get excited about what you're seeing on the trends. I would take caution and realize that the average days on market are a big thing to be aware of. You want to be on the front end of a rental decrease, not on the back end. If you're on the front end, you may see a $25 a month decrease in rent to place the tenant a little bit quicker. But if you're on the back end of a market decline, you're going to see a couple of$100 less on your average market rent. Because you did not adjust quickly enough, you're going to lose a considerable amount more on your average yearly return than if you would have reacted to just sound advice from a property manager that's been in the market like us.
So that's going to be your Fisher's Market report for February 2023.Caution is still in the air. A little bit of good news is that we're getting into the spring market, so things are, without a doubt, beginning to open up and properties are leasing quicker. I do expect the average days on market to drop as they normally would in the spring and summer months, but I'm really going to keep an eye on the average market rents here in the Fisher's area. I would expect or am expecting, we're going to see more of a decline that we've seen in the August through October months approaching here. So, all we can do is take a look, analyze the data, and report it back to you. Let us know if you have any questions or comments in the comment section. Be sure to like and subscribe, and we'll hit you with next month's market Report when it's available. Thanks.