The number of closed home sales were down during the second quarter of this year compared to 2018 and the inventory of homes is the lowest since 2013.
The second quarter home sales numbers were released Monday by the Peoria Area Association of Realtors (PAAR).
PAAR President Suzanne Miller said there were 1649 closed home sales during the second quarter of 2019, a 2.9 percent decrease, or 49 homes fewer, than the same period in 2018. Days on the market shrank from an average of 87 days during the second quarter of 2018 to 76 days in 2019.
Miller says one factor was the Caterpillar incentive program involving homes priced at $200,000 and up, which ended last December.
“We had so much that was on the market from the Caterpillar incentive program that is over now,” Miller said.
Miller suggested it would be more realistic to compare second quarter 2019 numbers with 2017 to reflect market activity minus any special incentives.
PARR reported sales in the second quarter of 2017 totaled 1,596 homes sold with an average of 80 days on the market.
With significant reduction in inventory, the months’ supply of homes is down 18.8 percent from 6.4 months to 5.2 months, the lowest since the second quarter of 2013, according to PAAR.
“It’s not a buyer’s market, but I don’t think it’s exactly a seller’s market yet,” Miller said. “However, we have seen a few instances where there have been multiple offers.”
Miller says the low inventory will mean a higher demand for homes, so it’s imperative for sellers to consult with a realtor on the best time to list their property and for buyers to make “realistic offers.”
Miller also said realtors will know the housing trends that are going on in their specific area.
“What we do every day is local business,” Miller said. “Stats and experience are here. Don’t pay attention to the national (housing) news because every market is different.”
