Decatur, IN Housing Market

Market Overview

Decatur’s housing market presents as a moderately strong market with a PropertyIQ Score of 74/100. The score is supported by a 12-month home value momentum of 10.80%, a median days on market of 53 days, a 24.1% share of listings with a price cut, and a 0.90% three-month momentum. Compared with state benchmarks, Decatur’s median home value of $254,213 sits just under the state average of $260,095, a difference of about $5,882. However, the rent index of $833 is well below the state average of $1,062, a gap of $229. The unemployment rate matches the state at 3.3%, while median household income is $65,289, about $6,668 below the state average of $71,957.

Despite the solid score, some metrics point to a market in transition. The 12-month home value momentum of 10.80% indicates strong annual appreciation, but the 0.90% three-month momentum suggests a notable slowdown in recent months. With 31 homes for sale and a median days on market of 53, the market is not showing an extreme inventory glut, but the 24.1% share of listings with a price cut shows that sellers are adjusting expectations. The reported year-over-year home value change is listed as $31, which appears inconsistent with the 10.80% 12-month momentum; the momentum figure is the clearer appreciation signal in this dataset.

Key Trends

First, price momentum is cooling. The 12-month home value momentum of 10.80% is the strongest score driver, but the three-month reading of just 0.90% indicates that much of the annual gain was front-loaded and that recent price growth has slowed considerably. This pattern is reinforced by a 24.1% share of listings with a price cut, meaning roughly one in four active listings has reduced its asking price.

Second, inventory is limited but not frantic. Decatur has 31 homes for sale, a small absolute number. A median days on market of 53 days suggests homes are selling at a measured pace rather than flying off the market. That combination points to a balanced-to-cooling environment rather than a red-hot seller’s market.

Third, local incomes lag the state while home values are only modestly lower. The median household income of $65,289 is about 9% below the state average of $71,957, while the median home value of $254,213 is only about 2% below the state average of $260,095. That means affordability relative to local incomes may be tighter than the headline home value discount suggests.

Fourth, the rental market is significantly cheaper than the state. Decatur’s rent index of $833 is about 22% below the state average of $1,062. This may limit rental cash flow for investors, but it can also make renting relatively affordable for local residents.

Who Is This Market For

This market appears best suited to owner-occupants and first-time buyers who can take advantage of a modest discount to the statewide median home value and a measurable share of price cuts. The median home value of $254,213 is below the state average of $260,095, and with a 24.1% share of listings reducing price, buyers may find some negotiation room. However, local incomes are also below the state average, so first-time affordability depends heavily on individual household finances.

Move-up buyers may benefit from the strong 12-month home value momentum of 10.80%, which could have supported home equity gains over the past year. That said, with only 31 homes for sale, move-up options may be limited. Investors seeking rental income may find Decatur less compelling because the rent index of $833 is far below the state average of $1,062, which may reduce cash-flow potential relative to other Indiana markets. Investors focused on appreciation may note the 10.80% annual momentum, but the 0.90% three-month momentum suggests that near-term price growth has slowed.

Outlook

The most likely near-term path for Decatur is a cooling or stabilizing market rather than a continued surge in home values. The 12-month home value momentum of 10.80% is strong, but the 0.90% three-month momentum, the 53-day median time on market, and the 24.1% share of listings with a price cut all point toward softer recent conditions. A steady unemployment rate of 3.3% supports underlying housing demand, but median household income remains below the state average, which may limit how far prices can stretch. Population growth data is not available, so long-term demand beyond these metrics cannot be assessed. Based on the provided figures, Decatur appears to be moving from a period of rapid appreciation into a more balanced phase.