Peoria real estate market: inventory down, sales up

Local News

PEORIA, Ill. (WMBD) — The Peoria Area Association of Realtors is reporting a 14% increase in home sales through the first nine months of 2021 compared to last year, even though there are fewer homes for sale.

Ryan Cannon, president of PAAR, said there has been a 40% drop in inventory compared to this time last year, but closings are up from 4,400 in 2020 to 5,800 in 2021.

“The American Dream is alive again. I think people want to own homes again. I think that pre-pandemic maybe it wasn’t as important and wanted to be a little more fluid,” he said.

Cannon said there has been an influx of buyers from California and Arizona to the Peoria area, who are looking to capitalize on equity to buy a second home – without the sticker shock.

“The cost of living is just less. I think people appreciate that and I think our region has a lot to offer,” he said.

Calling it a “Zoom-town philosophy,” he said many are looking to live in cheaper areas like Peoria. He said the price point between $100,000 and $350,000 is the most competitive. Buyers looking to spend above $500,000 will have more flexibility.

“A lot of people are changing their mindset. Like hey, I can buy a 4-bedroom 2.5 bathroom house for $250,000, where in San Francisco or Austin it might be $600,000 or $1 million,” he said.

Robin Simpson, designated managing broker at RE/MAX Traders Unlimited in Peoria, said many buyers are also sellers, as they looking to sell the home they are in while shopping for a new one.

“It’s always a little bit of juggling. They need to know where they are going, but they also need to get theirs sold, so you’ve got to balance the timing aspect for them,” she said.

Simpson said interest rates are low, so sellers are getting a higher price.

“We have a lower inventory and a higher sales volume right now than we’ve seen in a lot of years. Some have been crazy and just flying off the market in hours, literally hours,” she said.

Cannon said the pandemic has also sped up the process. He says he would typically schedule five showings on a Saturday for a client, but the process moves much faster now. He said a new listing could have as many as ten showings the very first day.

“So we went from a tour mentality to a ‘as soon as its on the market we’re gonna go see it cuz if you don’t you might not get it’ mentality,” he said.

Cannon said he expects the strong market to continue into the fourth quarter, typically a slower time in real estate.

“You really see a different set of buyers come into the mix late third and fourth quarter, of people who aren’t school district driven. The frenzy is over so they feel a little bit more comfortable,” he said.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Latest Local News

More Local News