PAAR reported that 1,811 homes were sold in the Peoria area in the third quarter of 2022, compared to 2,135 area homes sold between July and September last year, a decline of 15.2 percent.
“We are still seeing strong sales. The quarter was the third highest in PAAR history,” said PAAR President Robin Simpson, noting that the average price for homes sold in the third period was $172,711 up 6.9 percent over last year when the average sale price was $161,584.
Over the first three quarters of 2022, sales are down 14.1 percent compared to the same period last year.
“Higher mortgage rates have had the effect of buyers having to adjust the homes that they’re able to buy--more than slowing sales down,” said Simpson.
Inventory—the number of homes on the market available for sale—remains a problem, she said. PAAR records indicate the inventory of homes in the Peoria area was 11 percent less than in the third quarter of 2021.
“We are still low on inventory compared to previous years but it has remained pretty stable with about 850 homes available for sale,” said Simpson. As a result of the reduced inventory, buyers are acting quickly. The average number of days that homes remained on the market for the quarter was 22 compared to 31 days in the third quarter last year.
In order to take steps to curb inflation, the Federal Reserve has hiked interest rates five times in 2022. The average rate for a 30-year mortgage is now 6.92 percent, up from 3.05 percent last year while the rate for a 15-year mortgage is 6.09 percent, up from 2.30 percent last year.
Given the limited supply of homes on the market, it’s still a good time to sell a home, Simpson said. “Sellers should get the advice of a REALTOR® to price their home for the current market. Homes that are priced well and in good condition are still selling well,” she said.
“There are many good loan programs available with first-time home buyer grants. Buyers should be talking with a reputable local lender to guide them to their best options,” said Simpson.
About Peoria Area Association of REALTORS® PAAR is the “Voice of Real Estate: for the Greater Peoria region with over 800 members engaged in all facets of the real estate industry. PAAR advocates for all private property owners. REALTORS® are experts in guiding you in the decision to buy or sell; look for the R. More information on purchasing a home in the Peoria region can be found at www.309MLS.com Robin Simpson, Peoria Area Association of REALTORS® President, is available for interviews.
For more information, please contact Jennifer Hamm at (309) 688-8591 or jhamm@paarealtors.com
