Peoria area home sales up 18.3 percent

 Published Date: January 26, 2021

The family home took on new importance in 2020. The year that challenged the Peoria area’s health, business and employment in unprecedented ways saw home sales climb by 18.3 percent over 2019.

In 2020, home sales increased by 28 percent in the third quarter and by 29 percent in the fourth quarter compared to the same periods in 2019, according to the Peoria Area Association of REALTORS (PAAR). A total of 6,778 homes were sold in 2020 compared to 5,729 in 2019. This is the highest amount recorded by PAAR going to back to 2005.

Median sales price rose to $125,000 in 2020, up from $118,000 in 2019. The average sales price, according to PAAR statistics, was $147,490 up from $138,038 in 2019. PAAR President Jason Catton cited a number of reasons for the surge. “Obviously, low interest rates are a factor. Affordability plays a part, as well,” he said. “With more people working from home and more remote learning taking place, homeowners are looking for more flex space in their homes.”

Look for historically low interest rates to continue this year, note national housing experts. The 30-year mortgage is expected to average 3.075 percent in 2021, down from 3.125 percent in 2020, according to a forecast from the National Association of Realtors and Mortgage Bankers Association.

The biggest challenge for the Peoria housing market is finding enough homes to sell, said Catton. “We need inventory,” he said. “Only a 2.3-month supply of homes was available in this market at year’s end compared to 4.7-month supply at the end of 2019. “Since we’ve been keeping track, we’ve never seen a year when the months of supply for homes has been so low.” Such inventory levels make it a great time for sellers if a house is priced correctly, he said. “I personally have seen one client who has submitted offers on two different properties.

In both cases the client offer was not accepted due to over full price offers from other buyers that had also submitted offers for more than the list price to acquire the property,” Catton said. Other factors affecting the area’s low inventory numbers include the fact that little new construction has occurred in the region.