Peoria Area 2nd Quarter Home Sales Down But Positioned for Recovery

Was the glass half empty or half full as home sales were down for the second quarter of the year compared to a year ago, but up when compared to the same period in 2009? According to the Peoria Area Association of Realtors®, the home sales comparison to last year was not unexpected due to last year’s push to get the tax credit incentive that ended in June 2010.

“We are recovering from the aftermath of an economic meltdown that shook markets globally, but when you see that Peoria’s employment rate is nearly 92 percent; banks are making positive adjustments to lending; and that our rental market is near capacity, the signs are there that we are on the verge of an active housing market,” said Peoria Area Association of Realtors® President Michael Maloof.

“Home sales and average sale price numbers used to tell the real estate story in Peoria,” said Peoria Area Association of Realtors® President Michael Maloof. “But in today’s market, one shoe doesn’t fit all. You now have to give buyers and sellers more defined information such as what homes are selling for in a particular neighborhood or what price ranges are seeing more activity. More than ever, you have to rely on a Realtor to get you current information on home values, market trends, and comparables so that you can make better decisions.”

2nd Qtr. Home Sales. Home sales in the 2nd quarter 2011 totaled 1,200 homes sold, down 18 percent from 1,463 sales for the same period in 2010. When compared to a more realistic second quarter in 2009, home sales were up 2.5 percent with 1,170 homes sold. Total home sales in June were 411 compared to 420 homes sold in May and 369 homes sold in April.

“Simply explained, when you compare home sale numbers based on last year’s tax credit, the numbers will be skewed,” said Peoria Area Association of Realtors® President Michael Maloof. “If you compare second quarter numbers to 2009, the Peoria area shows a slight increase in home sales which not many communities can echo.”

2nd Qtr. Ave. Sale Price. The average sale price in the 2nd Quarter of the year was $136,872 compared to $138,297 in 2010, down by only 1 percent. Year-to-date numbers show that the average sale price of homes in the Peoria area stayed the same, $133,685 in 2011 compared to $133,619 in 2010.

2nd Qtr. Median Sale Price. The median sale price for a home in the Peoria area in the second quarter of 2011 was $113,000 compared to $117,500 in 2010, a decrease of 3.8 percent. Year-to-date numbers show a slight decrease of 1.8 percent from $109,000 in 2011 compared to $111,000 in 2010. The median is a typical market price where half the homes sold for more, half sold for less.

Pending Sales. Pending sales for the 2nd quarter were slightly down from a year ago from 369 to 355, but the good news was the increase in certain price ranges that had not seen much activity. There were positive increases in pending sales of homes and condos in the higher price range compared to a year ago. In June, homes in the $500,001 and above showed the greatest increase of 11.6 percent. Homes/condos in the $400,001 to $500,000 increased by 8.3 percent and homes/condos in the $300,001 to $400,000 were up 3.3 percent.

Inventory. Market-wide, inventory numbers were up by 0.3 percent in June with 3,158 active homes on the market compared to 3,150 for the same period in 2010. Home inventories were 3,001 for May and 2,861 for April. (2011 comparisons below.)

June 2011. Home sales in June 2011 were 411 compared to 457 in June 2010, down 10 percent. New listings increased by 4.5 percent from 772 in June 2010 to 807 in June 2011. Pending sales were up 4.1 percent. Months supply of homes for sale jumped from 7.8 months to 9.5, up 22.5 percent in June. Days on market increased 16.2 percent to 103 days. The housing affordability index showed an 8 percent increase over the same period a year ago.

The price range that tended to sell the quickest was the $75,000 and below range at 95 days; the slowest price range was the $1,000,001 and above range at 127 days. The property type with the largest price gain of 5.5 percent (median sale price) was the previously-owned  townhouse/condo segment. New construction (all properties) was down 1.2 percent in June.



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