Third-quarter home sales in the Peoria market dipped a little compared with last year, but increased over this year’s second quarter with inventory slightly on the rise.
According to figures from the Peoria Area Association of Realtors [PAAR], the region saw 1,543 homes sold during the July-September period, a drop of 2.6% from the same three months a year ago, but up 3.3% from the three previous months.
“In the real estate market, it’s a cyclical thing where for the last few years, we’ve seen it really be heavy on the sellers’ market, where sellers had a little bit more control over their pricing, and the lack of inventory created such a pent-up demand” said PAAR president Leslie Rothan.
“We’re seeing the pendulum sort of swing back where it’s softening quite a bit. Homes are still selling, and they’re not staying on the market super long, but it’s a little bit more of a stable market instead of an escalating market as we’ve seen in the last few years.”
The third quarter saw a 22.3% jump in inventory from the second quarter — from 591 homes for sale to 723 on the market.
“With the home inventory, buyers are still being realistic when it comes to the pricing of what [sellers are] offering, and there’s been a little bit more of a leveling out, so to speak, when it comes to what homes are available,” said Rothan.
“Buyers are still coming with in stronger offers, but they’re seeing a little bit more of a conversation, as opposed to just throwing their hat in the ring with an offer and bidding against five or 10 other offers.”
In another indication the sellers’ market is softening, the rapid purchases are less frequent. For September, the average time for a home to remain on the market ticked slightly higher to 32 days.
“Five or 10 years ago, it used to be six months on the market — and we haven’t seen a house sit for that long in years,” said Rothan. “Now we’re seeing 30 days turnaround time, so it’s still pretty quick as long as the home is priced right and the condition matches the pricing. But we’re not seeing them fly off the shelves within hours of being on the market anymore.”
The PAAR third-quarter figures report an average sale price of more than $217,000, an increase of 4.3% from the same period in 2024.
“Our general market, when we look at it from a global scale or even a state scale, our homes are still rather affordable. In the grand scheme of things when we’re comparing against other markets,” said Rothan.
“I would advise buyers to make sure they’re partnering with a licensed Realtor that has the access to information that just the general websites don’t offer. A lot of times, the first-time a buyer is looking at homes, they’re looking at the various search engines that are available.
“But what they don’t understand is sometimes the local Realtor who has been attending classes or networking with other Realtors, they may know of properties that are coming on the market or have not been listed yet.”
Rothan said while pent-up demand has eased, reduced interest rates are likely to bring more buyers to the market.
“We’re going to start seeing buyers feel more comfortable with when a home comes on, the interest rate feels right for them and it feels like the better financial choice for them to submit an offer and purchase a home,” she said.
“It’s sort of creating more of a stable market; all of the variables with the interest rates and the demand and the inventory, we’re seeing the pendulum swing into a more healthier real estate market.”
