If you follow the national news you’ve heard that housing prices have skyrocketed across the country. Home prices hit a new high in June, up 23 percent over June of last year, according to the National Association of Realtors.
The cost of buying a home is so great that first-time home buyers are often shut out of the market.
But in metro Peoria, recently cited as the most affordable mid-sized city in the nation by AdvisorSmith, a business research group, a 22-year-old hairdresser just bought an $80,000 home in Pekin.
Taylor Bohanan, 22, just closed on her first home Wednesday (July 28). She said it just made sense for her to consider home ownership.
“I’ve been thinking about it for about a year. I don’t think a lot of people my age know how easy it is to buy a home. And I didn’t either until I took the steps to actually do it.”
“I gave all the information to my Realtor and she gave all the information to the bank. They took care of it,” said Bohanan, adding that buying a home was always preferable to renting for her.
“Renting to me is a big waste of money. Renting to me never seems like home,” she said.
Instead of paying rent that can average $700 to $800 or more each month, Bonanan said home ownership has proved to be an economic alternative.
“My house payment is roughly $545 a month with taxes and insurance and it’s mine,” she said.
Sheila Walker is a mortgage loan originator with Fortress Bank in Pekin. She specializes in handling first-time home purchases.
Walker said the Peoria-area housing market provides a wide range of choices to prospective buyers.
“In general, our homes are more affordable. I see a lot of people moving back to the area because they’re able to work remotely. They can now look at moving to a more affordable area and be able to afford the homes here even though it’s a tight marketplace. Homes are being sold above the market price but, in general, it’s still a great market,” she said.
“Income-based programs are available. You don’t have to be a first-time home buyer to qualify. There are two down-payment assistance programs available to qualified buyers,” said Walker.
The National Association of Realtors reported that the median price for homes in June was $363,300, up from $294,400 last June while the Peoria Area Association of Realtors noted that the median sales price for homes sold in this area during the second quarter of this year was $127,000.
