Median home price stays consistent as home sales try to recover
Peoria area homes continue to maintain their value as home sales try to rebound from a sluggish economy. According to the Peoria Area Association of REALTORS® (PAAR) year-end report, home sales for the year showed a decline of 12.9 percent from the previous year. Average sale price and median price were comparable to 2008 indicating that home values continue to hold steady. On another positive note, Tazewell County, one of four counties included in the PAAR’s Multiple Listing Service was one of only five counties in the state to have increases in both home sales and median price in December.
“There’s no doubt that low interest rates and the tax credit for first-time buyers were the market highlights for the Peoria area housing market in 2009,” said Bill Embry, president of the Peoria Area Association of REALTORS®. “Another highlight is that in many of our market segments home values have remained fairly consistent indicating to some extent we are winning half the battle. I believe if the government can address the unemployment and job creation problems, the economy will improve and so will home sales.”
“It’s important to remember that interest rates are still low, the tax credit is available to a broader base of buyers, and home values did not fluctuate in many of our market segments,” said Embry. “The positives still exist in the Peoria area housing market.”
Home Sales. Total home sales for 2009 were 4,477 compared to 5,142 recorded in 2008, down 12.9 percent. The Peoria market did not see the huge home sales declines in 2005-2008 that many Illinois communities experienced, so in some areas of the state the home buyer credit and low interest rates actually lead to sales increases for 2009. For that reason, in the state overall, home sales were only down 1.5 percent to 107,503 home sales compared to 109,195 in 2008. Nationally, for all of 2009 there were 5,156,000 existing-home sales, which was 4.9 percent higher than the 4,913,000 transactions recorded in 2008. It was the first annual sales gain since 2005.
Median Home Price. Locally, the median sale price for 2009 increased slightly to $115,000 compared to 2008 median home price of $114,646, a negligible increase of less than a half percent. The year-end statewide median sale price for 2009 was $157,000, down 14.6 percent from $183,900 in 2008. The national median home price for 2009 was $173,200, down 11.9 percent from 2008. The median is a typical market price where half the homes sold for more, half sold for less.
Average Sale Price. The average sale price for homes in the Peoria area was $134,485 for 2009 compared to last year’s average sale price of $138,650, a decrease of 3 percent.
December 2009. Home sales for December 2009 stayed consistent with home sales in December 2008 with 295 home sold compared to 303 the previous year. Average sale price in 2009 was also consistent with 2008 with $130,143 for 2009 compared to $133,886 for 2008. The median sale price for December 2009 was $117,250 up 7.5 percent from $109,000 in December 2008.
Nationally, existing-home sales in the Midwest fell 25.8 percent in December to a level of 1.15 million, but are 8.5 percent higher than December 2008. The median price in the Midwest was $143,200, which is 1.8 percent above a year ago.
Inventory. The number of homes on the market in the Peoria area at the end of the year was 2,386 compared to 2,206 in 2008, an increase of nearly 8 percent. Inventory numbers are still at a level that gives buyers a number of homes to choose from in their price range. At the end of December, there was a 6.7 months supply of single-family homes on the market, an indication that the Peoria housing market is balanced between buyers and sellers.
For sellers, it’s important to know your competition and stay on top of what homes have sold in your area in the last 90 days. Sellers also have to have their homes priced right and in good condition. A Realtor can assist a buyer or seller to determine timing, pricing and the best value.
Tax Credit Deadline. Under the tax credit extension and expansion, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home on or before June 30, 2010. For first-time buyers the credit is equal to 10 percent of the cost of the home up to a maximum of $8,000 (or $4,000 for a married individual filing separately).
It’s not just for first-time buyers anymore! A new addition to the tax credit program is directed to existing homeowners and is not widely understood. For current homeowners who have owned their home 5 consecutive years out of the last 8, the credit is equal to 10 percent of the purchase price up to $6,500 (or $3,250 for a married individual filing separately). For qualifying purchases, buyers have the option of claiming the credit on either their 2009 or 2010 return. The credit reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar. It is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed. The credit is claimed using IRS Form 5405.
Peoria Area Association of REALTORS®
YEAR-END STATISTICS 1989 – 2009
Year # Sales Dollar Volume Ave. Sale $ Median$
2009 4,477 572,943,385 $134,485 $115,000
2008 5,142 $719,119,811 $138,650 $114,646
2007 5,820 $812,839,112 $139,663 $115,000
2006 6,139 $832,913,609 $135,675 $110,000
2005 6,152 $799,331,623 $129,930
2004 5,795 $691,588,050 $119,342
2003 5,525 $633,163,426 $114,807
2002 5,002 $533,171,777 $106,592
2001 4,737 $511,366,067 $107,951
2000 4,579 $471,162,620 $102,896
1999 4,190 $432,409,975 $103,200
1998 4,279 $423,589,581 $ 98,993
1997 3,744 $357,764,115 $ 95,557
1996 3,407 $306,785,111 $ 90,046
1995 3,273 $277,663,885 $ 84,835
1994 3,309 $268,754,504 $ 81,219
1993 3,348 $250,883,169 $ 74,395
1992 3,070 $218,975,620 $ 71,328
1991 2,992 $203,248,871 $ 67,931
1990 3,173 $196,084,277 $ 61,798
1989 3,246 $185,183,568 $ 57,050
YEAR-END INVENTORY NUMBERS