Home Sales Records Set Despite Low Inventory
July 14, 2021- Peoria, Illinois. Home sales in the Peoria area were 37.5 percent in the second quarter this year over the same period in 2020, according to the Peoria Area Association of REALTORS®.
Home sales totaled 2,304 in the period from April to June 2021, topping the 1,676 homes sold in the second quarter of 2020. "The biggest news is that we set new records for home sales in June and July in 2020 and have since exceeded the June 2020 numbers this year," said PAAR President Jason Catton.
"Last year we broke our all-time record in June with 663 closings and then again in July with 741 closings. This year we set new records for
June (681 sales) and July (818 sales)," he said.
PAAR reported that the median sales price for the second quarter was $127,000, down slightly from the $127,500 median figure recorded for the second quarter last year.
The average sales price for homes sold in the Peoria area over the second quarter this year was $154,466, up almost 5 percent from $147,272, the average sales price for the second quarter of 2020.
The supply of homes on the market remains an issue, said Catton. "Supply over the second quarter is steady at 1.5 months, still the lowest on record," he said. A 1.5 month supply equals about 900 to 1,000 homes on the market at any given time.
The PAAR President said the Peoria area mirrors the national home market in that, because of a low supply of homes, buyers often compete for homes that become available. "Buyers need to act fast in low inventory scenarios," suggested Catton.
Not only are more homes selling in the Peoria area, they're selling faster, he said.
"The pace of home sales is becoming much more rapid. Homes sold in the second quarter of this year averaged six to seven weeks on the market from listing date to an accepted offer. That's almost half the average of previous years," said Catton, noting that homes sold in 2019 and 2020 spent an average of 11 weeks on the market.
Catton offered other tips to help consumers navigate a hot housing market.
"Don't delay in making an appointment to view a home. Have a pre-qualification letter or proof of funds in hand prior to viewing homes, and if the home meets your requirements don't delay in getting your offer together," he said.
Where Peoria differs from other areas around the country is in the cost of housing, said Catton. "Our region is still affordable," he said, referring to recent figures from the Washington, D.C.-based National Association of REALTORS® that stated national housing prices have risen over 20 percent in the past year.
"Those who are looking to sell a home should reach out to a REALTOR® to better understand their current home's value and identify how much inventory is available that fits the criteria they are looking for," said Catton.
The top cities for sales came in the region were Peoria (716 sales in the second quarter), Pekin (220 sales), Washington (167 sales),
East Peoria (149 sales) and Macomb (110 sales).