Indianapolis real estate is starting to show signs of recovery after spending a good amount of time reeling from the nationwide recession. Indianapolis has been dealing with a number of problems that have affected many other cities in Indiana as well as the rest of the country. Some notable areas of concern include foreclosures, low home sales, and continued difficulties in acquiring lines of credit. The biggest problem with the Indianapolis real estate market as well as a number of other Midwestern cities is the interaction of different market variables, making it difficult to determine exactly what parts of the market are recovering and which are in a state of further decline.

In the words of Indianapolis Realtor Joyce Moore, “The housing market is beginning to show signs of getting prices back to reality! There are a lot of investors running around with their clipboards, canvassing neighborhoods in Indianapolis to capitalize on the high number of homes for sale in the area due to foreclosures and increased property taxes.” According to the Metropolitan Indianapolis Board of Realtors, just less than 4600 homes have been sold during the year to date, going for about four percent less than the listed price, and staying on the market for about ninety four days. There are currently just over 4200 homes for sale in Indianapolis, along with more than 26,000 properties in the central Indiana. A great deal of these listings are foreclosures and short sales, so the simple number of listings should not necessarily be taken to imply a strong or rebounding market.

Perhaps the largest problem still facing Indianapolis real estate is the high number of foreclosures flooding the Central Indiana market. The Indianapolis state legislature considers the foreclosure crisis to be so serious that it has taken corrective action independent from the federal government's efforts. According to a July 22, 2009 article in the Chicago Tribune, “Indiana Attorney General Greg Zoeller said those and other efforts involved all three branches of state government and should result in more residents keeping their homes.”