Greater Peoria Home Sales Activity in June on Par with 2009 levels, while Inventories Shrink to 2005-6 Levels, Home Prices Increase for Sixth Consecutive Month and Homes Sell More Quickly – Averaging 94 days on the Market
Peoria, Ill. – July 17, 2012 – According to the Peoria Area Association of Realtors® second quarter 2012 report, homes sales continued to grow, putting the home market back on par with 2009 levels. Sales of single-family homes and condominiums totaled 1350 in the second quarter of 2012, up 10.7 percent from the 1219 sales in the second quarter of 2011.
Quarterly statistics indicate that the market is leveling off, with sales going up, inventory and days on the market going down and pricing power coming back.
• The number of properties for sale is down 24.1 percent
• EditorThe months supply of Inventory is down 33.2 percent to a 6.7 month supply of homes, taking it back to 2005-6 levels
• Average sales prices increased 5.8 percent
The average sales price rose by 5.8 in the second quarter of 2012 to $144,290 compared to $136,406 in the second quarter of 2011. The median sales price for homes in the Peoria area also increased 7.5 percent to $121,500 during the second quarter of 2012, compared to $113,000 for the second quarter of 2011.
June statistics reinforce what is being seen in quarterly statistics:
• The June average sales price increased 6.4 percent to $152,742, making this the sixth consecutive month of stable or increasing prices
• The median sales price increased 6.6 percent from June 2011 to $125,000
• Residential sales were up 12.9 percent over June 2011.
• Inventory of properties for sale in June was down 24.1 percent to 2,573.
• Sellers are regaining their pricing power, receiving a greater share of their asking price than the prior year for the past 7 months.
• Average days on the market are down 8.7 percent to around 94 days
“As home sales continue to rise, and the inventory goes down, the ‘absorption rate’ stabilizes,” said Laura Martin, president of the Peoria Area Association of Realtors®. “In other words, the numbers of buyers and sellers in the market is nearly balanced at a 6.7 month supply of houses. (A 5 to 6 month supply of properties equates to neither a seller’s nor buyer’s market.) This balance is indicative of a continuing economic recovery and reflects the improving jobs outlook – unemployment rates dropped to a low of 7.6 percent in May.
“Another contributing factor to growth in home sales is the scarcity of rental properties, which has pushed rents up,” explained Martin. “For many people a mortgage payment will actually cost less per month than rent. Contributing to the affordability of mortgages are continued low interest rates. The Fed has vowed to keep interest rates around 4 percent through mid-2013. So all the elements of home ownership – jobs and low interest rates – are present. In central Illinois, this continues to be a good time to buy a home, and represents an improving outlook for sellers.”