Although home sales in the Peoria area for 2022 fell sharply from the previous year, the market continues to thrive.
The Peoria Area Association of Realtors reported 6,464 homes sold last year, down 15.4% from the 7,634 closings in 2021. But 2022 still registered the organization’s third-highest total on record, topped only by the previous two years.
PAAR President Robin Simpson pointed to one key factor playing a significant role in the 2022 dropoff.
“Definitely, by the most part due to low inventory,” said Simpson. “The year 2021 was a record high sales year and it just depleted our inventory, and we just haven't gotten enough homes on the market. So we need homes to sell.”
Simpson said rising interest rates throughout last year contributed to the decrease in sales, adding she expects the rates to remain more stable this year. She said the inventory shortage also led to homes not taking long to sell, with the average time on the market down nearly 35% compared to 2021.
“When things come on the market, they are just selling they're selling quickly,” said Simpson. “Our days on market last year was record low of 32 days on market, and prices were increasing. So that's all good news for our area. We just need more things to sell.”
The number of homes on the market at the end of the year has fallen significantly over the past three years. At the end of 2020, there were 1,338 homes available; that number fell to 898 in 2021 and 687 in 2022.
“For several years, we've been really, really low on new construction. We need some new houses coming into the market,” said Simpson. “We're seeing more buyers with the millennials coming into the market as new homebuyers, and we just don't have enough inventory to support people moving to a different home and giving those homes to first-time homebuyers.”
The average sale price in the Peoria area increased more than $10,000 in 2022, topping more than $164,700.
“We have one of the most affordable places to live around the Midwest; it's been shown nationally, statewide,” said Simpson. “We have a lot of things to offer for buyers, and our average home sale price is well below the national average. So it's very affordable for homebuyers to get into the market.”
Simpson said she’s confident the real estate market in Peoria will remain strong this year.
“I haven't seen the stats yet for January; we'll see that hash out in the next couple of weeks. But I'm predicting that we're still going to have a very strong market at the end of this winter going into spring,” said Simpson. “It's just finding the right professionals to help you find what you're looking for and due diligence of being out there for when something comes on the market.”
