Updated: November 14, 2026 · By Mark Dietel, Broker/Owner, Mark Dietel Realty · 6-minute read
Quick answer: Months of inventory measures how long homes for sale in Indianapolis (Marion County, Indiana) would last at the past year's pace, and in October it sat near four months. Mark Dietel Realty reads that as a balanced market overall: the lowest-priced homes gave buyers the most room, and the $400,000s ran tightest.
What we analyzed: Indiana REALTORS Housing Hub monthly market reports for Marion and Johnson counties (October 2026), and MIBOR Broker Listing Cooperative records for residential homes in Marion County: sales closed August 16 to November 13, 2026, sales over the past 12 months, and active listings as of November 14, 2026.
Key takeaways
- Months of inventory compares homes for sale with the past year's sales pace. What buyers pay shows up in sale prices against first list price.
- Marion County had more months of homes for sale than Johnson County in October.
- By sale price against first list price, Marion County reads as a balanced market over the last 90 days.
- Supply and price did not line up range by range: homes from $350,000 to $399,999 had more supply than most ranges but still sold close to their first price.
- Homes under $200,000 gave buyers the most room to negotiate; homes from $400,000 to $499,999 sold closest to first price.
What does months of inventory measure?
Months of inventory, also called months of supply, is the number of homes for sale divided by the average number of homes sold each month over the past year. It answers one question: if no new listings came on, how long would today's supply last? It measures competition for buyers, and sale prices show what they paid.
The Indiana REALTORS Housing Hub publishes the figure each month for every county, counting active listings only. Marion County stood at 3.7 months in October, up almost a quarter from a year earlier. For a seller, that means more homes competing for each buyer than last fall.
Is Marion County a buyer's or seller's market right now?
By our measure it is a balanced market. Marion County homes that sold over the last 90 days closed at a median of 96.4% of their original list price, the first price a home was listed at, inside our balanced range for Indiana. For an Indianapolis seller, buyers are still paying close to first price when that price matches recent sales.
Close to two in three homes still for sale have cut their price at least once. The window runs from mid-August into mid-November, so late summer and early fall are both part of the reading. For the countywide picture, see Is Indianapolis a buyer's or seller's market right now?.
Does more inventory mean a lower price in your range?
Not always. In Marion County, supply and sale price did not line up neatly by range. Homes from $350,000 to $399,999 had more months of supply than most ranges but sold close to first price. Homes under $200,000 had a little less supply than that range and gave buyers the most room.
Marion County by price range: supply and sale price vs. first list price
| Price range | Months of supply | Median sale price as % of original list (last 90 days) | Closed sales (last 90 days) | Active listings with a price cut | Our read |
|---|---|---|---|---|---|
| Under $200,000 | 3.9 | 93.4% | 850 | 60% | Buyer's market |
| $200,000 to $249,999 | 3.6 | 97.1% | 468 | 65% | Balanced |
| $250,000 to $299,999 | 3.4 | 97.3% | 443 | 64% | Balanced |
| $300,000 to $349,999 | 3.7 | 96.9% | 322 | 63% | Balanced |
| $350,000 to $399,999 | 4.1 | 97.6% | 175 | 66% | Balanced |
| $400,000 to $499,999 | 3.3 | 98.5% | 166 | 57% | Seller's market |
| $500,000 to $749,999 | 3.5 | 97.2% | 151 | 56% | Balanced |
| $750,000 and up | 4.4 | 95.1% | 83 | 52% | Buyer's market |
| All Marion County | 3.7 | 96.4% | 2,658 | 62% | Balanced |
Months of supply here is active listings on November 14, 2026, divided by average monthly sales over the past 12 months.
Our view at Mark Dietel Realty: A town-wide number is where the conversation starts. Your price range puts you in your own market.
How does Indianapolis compare with Johnson County?
Johnson County stood at 2.9 months in October, less supply than Marion County. In our experience, buyers near County Line Road often tour homes on both sides of the line at the same price, so a Southside seller may be competing with Greenwood listings that have a little less company. The map shows how supply varied across Johnson County.
For a closer look south of the line, see what the Johnson County housing market is doing right now.
What does this look like in Central Indiana?
Here is a hypothetical example, not a real sale: a Marion County home in the $300,000 to $349,999 range. A written net sheet for your address would replace these placeholders.
Hypothetical example: two starting prices for the same Marion County home
| Step | Price it to recent sales | Start high and wait |
|---|---|---|
| Starting list price | $320,000 | $340,000 |
| What buyers compare it with | Recent sales from $300,000 to $349,999 | The same sales, plus 3.7 months of competing listings |
| What recent data shows | This range sold at a median of 96.9% of first list price | Close to two in three active listings in this range have cut their price |
| Hypothetical sale price | About $310,000 ($320,000 x 96.9%) | Depends on when and how far the price is cut |
| Costs to subtract | Payoff, prorated property taxes, title charges, your negotiated agent compensation (enter yours) | The same, plus carrying costs for any extra months on the market |
Sell now, or wait?
In Marion County, the answer turns on your price range and your next move. Listing this fall fits when your home is in the $400,000 to $499,999 range, where recent sales came closest to first price, or when you already know where you are going, since each extra month adds carrying costs.
Waiting fits when your home is under $200,000 or at $750,000 and up, where buyers negotiated the most, and you need time for repairs and prep before you face that competition. That is our read of the last 90 days, not a forecast.
When this doesn't apply
These figures describe Marion County as a whole and by price range. They can mislead for a home unlike its neighbors, such as acreage, a condo in a small building or a home that needs major repairs, because few true comparable sales exist. They do not cover Hamilton, Hendricks or other counties, and a few new listings in a small range can change its supply quickly.
What to do next
Start with the supply and recent sales in your own price range. Then set a first price inside what that range has been getting. For the Southside by price range, see what the Southside Indianapolis housing market is doing now. Mark Dietel Realty has helped 126 sellers in Indianapolis since November 2024.
Prefer to talk? Call (317) 426-9911. Mark Dietel Realty has offices in Southside Indianapolis, Greenwood and Bloomington.
Frequently asked questions
Is 3.7 months of inventory a lot for Marion County?
It is more supply than Marion County had a year ago, but supply alone does not decide the market. Our market call rests on what homes sold for against their first list price, and over the last 90 days that read as balanced, with buyers paying close to first price.
Does months of inventory include homes under contract?
No. The Indiana REALTORS Housing Hub figure counts active listings, not homes that are pending or sold, and divides that supply by the average number of monthly sales over the previous 12 months.
Is months of inventory the same as days on market?
No. Days on market measures how long homes that went under contract were listed. Months of inventory measures how long the current supply would last at the past year's pace. A range can have plenty of supply while well-priced homes in it still go under contract quickly.
Should I wait for inventory to drop before I sell?
We do not predict where supply goes next. If homes in your range sold close to their first price over the last three months, waiting may not change much. If they did not, pricing and preparation usually matter more than timing.
This is general information, not legal, tax or appraisal advice. Confirm your situation with the Marion County Assessor, a CPA or an attorney. Market figures describe past sales and are not a forecast or a promise of any result.
Mark Dietel Realty - offices in Indianapolis (Southside), Greenwood and Bloomington, Indiana.
Sources
- Indiana REALTORS Housing Hub, Marion County monthly market report, October 2026 (updated Nov. 7, 2026): https://data.indianarealtors.com/viewreport/2/all/18097/
- Indiana REALTORS Housing Hub, Johnson County monthly market report, October 2026 (updated Nov. 7, 2026): https://data.indianarealtors.com/viewreport/2/all/18081/
- Indiana REALTORS Housing Hub, Johnson County ZIP Code figures as published, October 2026: https://data.indianarealtors.com/market/18081/
- MIBOR Broker Listing Cooperative (MLS), residential records for Marion County: closed sales August 16 to November 13, 2026 and November 14, 2025 to November 13, 2026; active listings as of November 14, 2026.
- Based on information submitted to the Broker Listing Cooperative listing service as of November 14, 2026. All data is obtained from various sources and may not have been verified by broker or Broker Listing Cooperative listing service.
- Mark Dietel Realty, closed seller-side transactions in Indianapolis, November 2024 to November 2026 (internal records, totals only).
