Westfield Indiana Rental Market Update November 2022
Hey, guys. Chris Knight, business development manager, here with Red Door Property Management, bringing you another Westfield Market update for November of 2022. Now we are still in a pretty tumultuous market overall, but I do think we are beginning to see some things stabilize overall. We're seeing fewer best days on the market in this area, which is ultimately a good thing. We are seeing a decrease on the number of homes that are being placed on the market. So, the surplus we've been seeing in previous months is starting to come down. So, stabilization is without a doubt right around the corner. So, let's jump into some of these numbers and see where we're going to be approaching the holiday season.
New Listing | Active Homes
All right guys, let's dive into the Westfield November 2022 Market Update report. Some pretty wild numbers, but very interesting numbers, especially if you're looking at this area as a potential investment. So, let's dive right in. Try to make this a quick one here, but with new listings and active homes currently on the market. So, new listings, nine new listings, which is crazy as you see here, which isn't really all that big of a surprise. This is a growing market, a lot of new development going on in the Westfield area. So, we're up 350% from the prior year. But what's also wild here is we are down 31% from the prior month. So, this kind of tells me that we are beginning to enter a more stabilized market, I think. I hope so, down 31% as far as new listings from just the prior month. So, the surplus that we've been seeing, I think in most of the markets around the Indianapolis area, I think it's starting to finally correct out here a little bit.
So, getting into the rented homes, we saw twelve homes rented and mind you, this is a pretty small sample and pulled from the local MLS. So, I mean, as far as the area goes, a pretty large sample set. But yeah, this is information that is pulled from the local multiple listing service. So, twelve rented homes in the market in the month of November. This is up 140% from the prior month of October, which is pretty cr azy, and up 20% from the prior year. So, more homes on the market. As construction continues in this area, more homes become to hit the market, more homes to rent. So up 140% from just the prior month.
Average Days on Market
Average days on the markets. Now this is a pretty high average in comparison to a lot of the other markets around Indianapolis. Pretty large, larger than I would expect, to be honest with you. Up 370%. Well, that would be, that would be why it's probably a bit surprising to me. I mean, it's up 370% from the p rior year but still down from just the prior month by 16%. So pretty staggering figures that we're seeing in this market. But up 370% from the prior year. Is a pretty telling for the current average time on the market that we're seeing.
So, let's jump down here to average rent. This is a very popular category for a lot of our viewers now. This is awesome. If you are interested in investing in the Westfield area, you will quickly notice we're up 19% from year over year for the increase in average rent and up 16%from just the prior month, which is crazy. We're seeing such a dramatic increase from just the prior month because look at the active homes that are hitting the new market. We're down 31%, which is just continuing to drive up our average market rents going into this slide.
This is going to tell us what our firm really likes to say. What I really like to say is the meat of the market. So, the average rental rates for homes that have performed really well over the last twelve months, so right around the $2 001 to $2,500 a month in market rent is where you're really seeing a lot of the market activity happening. So, if you're interested in investing in this area, this is really the rent ranges that you really want to shoot for in order to have the highest interested parties looking at your type of property.
And then lastly, getting into the absorption rate. So, if you don't know what the absorption rate is, it is essentially how many months it would take to burn through our current active homes currently on the market. Right now, we are at A 1.8. That to me, in my personal view, as I'm beginning to learn more and more about the markets around the Indianapolis area, I like to see around A 2.0 to indicate a relatively healthy market here. We're at a 1.8.I would c onsider that pretty good. Not only that, we're seeing an increase in monthly rents month over month, let alone year over year, still continuing out of this fluctuating market that we've been experiencing.
So that's your market update for November 2022 for Westfield, Indiana. Thanks