2021 Looms as Busy Year Despite Low Inventory ... Home sales in the Peoria area were up 15 percent in the first quarter over the same period last year, according to the Peoria Area Association of REALTORS®.
Home sales totaled 1,330 in the first three months of 2021 compared to 1,157 homes sold in the first quarter of 2020. The biggest increases in sales came in Peoria Heights, Creve Coeur, Cuba, West Peoria and Macomb. Outside of Peoria, the largest number of home sales occurred in Pekin, Washington and East Peoria, respectively. The average sales price of homes sold in the first quarter rose to $140,295, up from an average of $132,825 last year.
PAAR President Jason Catton said that while home sales have increased by 15 percent and average home prices have risen by almost 6 percent, the inventory of homes on the market continues to dwindle.
"We certainly need more homes on the market. We are seeing more inventory return to the market but the buyer pool is still strong, keeping inventory low," he said.
A market with low inventory and high demand means competition, said Catton. "It's more important than ever to use a REALTOR® who's educated on current values to help you price your home correctly so you get the best value for your home," he said.
"I have personally been drafting offers prior to showing clients a home in the event they want to make an offer. That way a buyer can actually submit an offer prior to leaving the home," said Catton, noting that it's not uncommon for properties to receive multiple offers, sometimes over the list price.
During difficult times, technology has been a key player in the selling of a home, he said. "We see video and 3D virtual tours being used that give consumers an idea of what a home is like without stepping foot in it. This also cuts down on the time sellers have to be out of the home for showings," said Catton.
The pandemic continues to impact the U.S. housing market, said Lawrence Yun, chief economist for the Washington, D.C.- based National Association of REALTORS®.
"Owners who were content with their home before the pandemic are thinking about the benefits of another bedroom to use as a dedicated home office or are considering relocating to the countryside, knowing that commuting to downtown offices every day has become a thing of the past," said Yun.