PEORIA, Ill. (25 News) – Sellers continue to reap the benefits of a local housing market with fewer homes available and at a higher interest rate.
Data from the Peoria Area Association of Realtors for the last three months of 2023 shows an overall 12% decrease in home sales compared to 2022.
Just over 5,600 homes sold in the area in 2023, compared to 6,472 home sales in 2022. 2023 ended with about 150 fewer homes on the market than the end of the year prior.
All that creates a market where homes sell quickly. President of PAAR Bill McCarthy said a home typically sits on the market for about a month. Now, they are seeing them sell in a week or less.
“We’re seeing a lot of houses sell in the first seven days,” he said. “We get some houses sold in the first day or two. We’re also seeing multiple offers on them.”
The changing interest rates stem from the economic effects of the pandemic and inflation. Prior to 2020, interest rates were around 3 or 4%. Those rates jumped up to 5.5% in 2022, and now they hang around
McCarthy and PAAR estimate those rates will stay the same for at least 2024.
None of these factors are stopping buyers. While homes in Peoria are selling for 6% more than last year, the average sticker price for a home is far below the national average.
PAAR reports the average home sold for around $ 175,000. The nationwide average was around $380,000. McCarthy said realtors have homes at a variety of price ranges, but noticed homes priced at average or below are selling well. Higher-priced homes have a smaller pool of prospective buyers but are still getting sold.
“Peoria, we’ve never had the high highs and the low lows, we’ve always been kind of moderate, so we’re very affordable compared to other areas,” he said.
He suggests buyers have everything ready to go before home shopping. PAAR reports seeing more cash payments than before and there’s an urgency to buy.
McCarthy said home buyers might see a place they like and then check it out over the weekend, now there’s an emphasis to make a move as soon as possible before someone else can take the home.
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