The residential real estate market in Greater Peoria is on a slight rebound after a tough first quarter.
The Peoria Area Association of Realtors [PAAR] reports housing sales in the region increased 1.6% in the second quarter, compared with the same three months a year ago.
The association’s monthly reports show an especially strong June, with 562 closed sales representing a 15.6% jump from June 2024.
PAAR President Chris Hilton views the boost as an encouraging trend.
“This likely reflects growing consumer confidence as interest rates have stabilized,” Hilton said in a news release. “Buyers who may have previously paused their search are re-entering the market, and sellers are becoming more realistic about pricing.”
PAAR reported 1,494 area homes sold in the second quarter, with an average price of just more than $203,500. However, the three-month period did have about 50 fewer homes listed for sale than in the second quarter of 2024.
“Inventory remains tight, which continues to put pressure on both buyers and sellers. Many homeowners are still reluctant to give up historically low mortgage rates, which limits new listings,” said Hilton.
“However, we may see a gradual rise in inventory if market confidence grows and life events — such as job changes, retirement, or downsizing — prompt more movement. We expect inventory to improve slowly but not dramatically in the near term.”
Hilton said more sellers have started testing the market, especially ones who have been “on the fence” for the past few years.
“With average prices rising and demand returning, homeowners see this as a good opportunity to maximize value,” she said, adding pricing should still reflect buyer expectations.
