INDIANAPOLIS, IND. (WOWO) Indiana’s housing market saw modest growth last year as more homes came on the market and prices continued to rise.

Statewide, just over 80,100 homes closed, marking a two percent increase from the previous year. The median sale price climbed nearly five percent to about $267,000, according to Indiana Realtors.

Sales in the Indianapolis metropolitan area increased three percent. The region tied with Bloomington as the most expensive housing markets in the state, with median prices reaching approximately $315,000.

Indiana Realtors report that housing supply improved, with new listings up five percent and overall inventory reaching a five-year high. Homes also took longer to sell, and price reductions became more common, giving buyers additional leverage in negotiations.

Despite the improved inventory, higher mortgage rates continued to challenge first-time buyers. Home values, however, continued to rise, benefiting long-term homeowners across the state.