Southwest Indiana Real Estate Market Update – July 2026

By Trae Dauby, Owner of Dauby Real Estate

If you're wondering whether now is a good time to buy or sell a home in Southwest Indiana, the latest housing market data provides a clear picture: inventory is growing, home prices remain strong, and we're still firmly in a seller's market.

This information covers eight counties in Southwest Indiana and includes Evansville, Newburgh, Boonville, Tell City, Santa Claus, Jasper, Princeton, and Mount Vernon.

While the market is becoming more balanced than it was during the pandemic, buyers and sellers are experiencing very different conditions depending on price range and location.

Here's a closer look at what happened across Southwest Indiana during June 2026 and what it means moving forward.

Click here to watch the full video of this market update.

June 2026 Market Snapshot

Compared to June 2025:

• 📈 New Listings: 586 homes (up 15%)
• 📉 Homes Sold: 444 (down 5%)
• 💰 Average Sale Price: $290,000 (up 13%)

Although slightly fewer homes sold during June, homeowners continued to see strong appreciation and healthy demand.

Southwest Indiana Remains a Seller's Market

As of early July, there are 864 active homes for sale across the eight-county Southwest Indiana market with 484 homes currently under contract. Over the past six months, 2,212 homes have sold, leaving the market with just a 2.3-month supply of inventory, which remains well below the five to seven months typically considered a balanced market.

Generally speaking:

• Under 5 months = Seller's Market
• 5–7 months = Balanced Market
• Over 7 months = Buyer's Market

At only 2.3 months of inventory, sellers continue to have the advantage. However, buyers have noticeably more choices than they did during the inventory shortages of 2020 and 2021.

Why Did Home Prices Jump 13%?

One of the biggest headlines this month is the average sale price of $290,000, up 13% from June 2025.

Before assuming the market suddenly appreciated 13%, it's important to understand what the numbers are showing.

Real estate prices naturally fluctuate throughout the year.

Historically, home prices tend to peak during the spring and summer months when buyer demand is strongest before softening during the winter.

Looking at the broader six-month picture provides a better representation of market trends.

Across the past six months, the average sale price in Southwest Indiana has been approximately $260,100, reflecting a much more stable long-term trend.

Pricing Your Home Correctly Matters More Than Ever

One trend continues to stand out in today's market.

Homes that are priced correctly are selling quickly and for strong prices.

Across Southwest Indiana:

• Sellers received 97.9% of their final list price
• Sellers received 95.9% of their original list price

The difference tells an important story.

Many homeowners are still starting too high and reducing their price before receiving an offer.

Accurate pricing from day one continues to be one of the biggest factors in maximizing your final sale price.

Homes Are Taking Slightly Longer to Sell

The average home is currently selling in 45 days.

That's slightly longer than last year, when homes averaged around 40 days, but it remains a healthy market.

Compared to historical averages, 45 days is still a relatively quick sale.

Buyers have become more selective, but well-prepared homes continue to move quickly.

Mortgage Rates Continue to Improve

Mortgage rates currently sit around 6.4%, down from approximately 6.7% one year ago.

While rates remain above the historic lows seen during the pandemic, they have stabilized and even improved slightly.

Lower borrowing costs are helping many buyers re-enter the market.

Every Price Range Is Different

One mistake buyers and sellers make is assuming the entire market behaves the same.

It doesn't.

Homes Under $350,000

This remains the most competitive portion of the market.

Inventory generally ranges between one and two months, creating strong competition among buyers.

Homes Between $350,000 and $500,000

This segment has become slightly more balanced with approximately three to four months of inventory.

Buyers have more negotiating opportunities while sellers continue to benefit from healthy demand.

Homes Above $500,000

Luxury properties currently have around 5.3 months of inventory, making this the most balanced segment of today's market. Sellers are still achieving strong prices, but buyers typically have more choices and negotiating power.

Breaking Down the Numbers

Under $200,000

• 2.2 months of inventory
• 39 average days on market
• 97.0% list-to-sale price ratio

$200,000–$500,000

• 2.1 months of inventory
• 48 average days on market
• 98.6% list-to-sale price ratio

Over $500,000

• 5.3 months of inventory
• 59 average days on market
• 97.9% list-to-sale price ratio

As expected, higher-priced homes generally take longer to sell because there are fewer buyers in those price ranges.

What Does This Mean for Buyers?

Buyers now have:

• More listings to choose from
• Slightly improved mortgage rates
• Less competition than during 2021 and 2022
• Better negotiating opportunities in higher price ranges

However, desirable homes that are priced correctly continue to sell quickly.

Preparation remains essential.

What Does This Mean for Sellers?

If you're considering selling, the market continues to work in your favor.

Inventory remains low.

Home values remain strong.

But pricing strategy has become more important than ever.

Today's buyers are well informed and willing to wait for the right home.

Real Estate Is Local

One important reminder:

These numbers represent the overall Southwest Indiana market.

The housing market in Evansville can look very different from Newburgh, Jasper, Princeton, Mount Vernon, Tell City, Santa Claus, or other surrounding communities.

Even neighborhoods within the same city can experience very different market conditions.

That's why local expertise matters when buying or selling a home.

Frequently Asked Questions

Is Southwest Indiana still a seller's market?

Yes. With just 2.3 months of inventory, the market continues to favor sellers.

Are home prices still increasing?

Yes. June's average sale price was 13% higher than June 2025, although seasonal trends should also be considered.

Are homes taking longer to sell?

Slightly. The average home currently sells in about 45 days.

Is now a good time to buy?

Buyers have more inventory and slightly lower mortgage rates than last year, creating additional opportunities.

Is now a good time to sell?

Yes. Inventory remains low, and well-priced homes continue to attract strong buyer interest.

Need Advice About Your Local Market?

Whether you're buying or selling in Evansville, Newburgh, Jasper, Princeton, Mount Vernon, Tell City, Santa Claus, or anywhere else in Southwest Indiana, our team is here to help.

Every market is different, and we'd be happy to provide advice based on your specific neighborhood, price range, and goals.

You can reach us at 812-777-4611 or visit www.DaubyRealEstate.com to learn more.

Curios about your home value? Click here.

About Trae Dauby

Trae Dauby is the owner of Dauby Real Estate and one of Southwest Indiana's top-producing real estate professionals. He provides monthly market updates, local housing insights, and expert guidance for buyers and sellers throughout Evansville, Newburgh, Jasper, Princeton, Mount Vernon, Tell City, Santa Claus, and the surrounding Southwest Indiana communities.