Peoria, IL (PRWEB) July 19, 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 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:
“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.”
For more information, please contact: Chris Shay, 309 840-3702 or 309 740-9718