The residential real estate market in Peoria continues to be a seller’s market, certainly, but we are starting to see movement from the extreme seller’s market to one that offers a little more favor to buyers than we have seen in quite some time.
There has been a consistent but slight shift taking place month-over-month with respect to buyer demand and housing inventory.
Based solely on numbers and projections – meaning not all buyers and sellers will “feel” any changes quite yet because they are not watching the numbers like we Realtors are — we are seeing the winds of the housing market change.
Those changes will feel subtle to some, but many sellers are already feeling them. Anything can happen to change the projections, but if the market continues to act in the same manner as it has over the past four weeks, where the buyer demand is lightened a bit and inventory is trending slightly higher, this frenzy of multiple offers and prices climbing at record speeds could be over.
With more than 1,800 homes that are in some form of the entitlement process and pressing forward in northwest Peoria, that can increase the weakening of a seller’s market, but more likely it will push us a little faster toward a balanced market. That is certainly not a bad thing for our buyers. They have been fighting for a chance to take advantage of the great interest rates and desirable Peoria neighborhoods, but many have been unsuccessful in securing an accepted purchase contract.
It’s not likely a bad thing for sellers, either. Our sellers expectations may need to be adjusted as they get used to stabilizing prices, buyers that could possibly ask for concessions like a home warranty again, and fewer appraisal waivers, but a balanced market doesn’t mean a seller is “losing” value on their home in most cases. It does typically mean that the prices will increase in a more healthy and consistent manner, rather than unsustainable increases that we have seen in the first half of 2021.
It will take some time for these 1,800 new-built homes to make it to the open market, so we are not expecting the lack of inventory to be resolved all at one time, especially where our population will continue to grow.
There are not projections that we are going to have a “market crash” (I am asked about this daily) or move to a “buyer’s” market in the coming months. However, the market seems to be settling down and the 1,800 homes slated for northwest Peoria certainly helps the future home owners who have been watching and hoping for more opportunities to realize their home-ownership dreams.
Editor’s note: Rebecca Durfey is a Peoria-based Realtor with Keller Williams Realty Professional Partners.