If you are a homeowner in Peoria Illinois, you likely already know just how amazing the past few years have been for our real estate market. Enjoying unprecedented increases in equity, homeowners today enjoy a unique advantage that can be leveraged toward their next major goals. While it’s easy to read headlines about rising interest rates and a slowing housing market and feel daunted, with the right understanding of your position as a Peoria homeowner you will see just how strong your position actually is.
Changes in the Market
If you read nationwide news, you will see clickbait article titles and fear-inducing headlines that may cause you to think the market has shifted entirely to become a buyers’ market. In reality, it remains decidedly a seller’s market. In Peoria today, there are about 740 homes on the market. In order to be what we call a balanced market (a roughly equal number of homes for sale and buyers looking for homes), we would need to see about 2400 homes on the market in Peoria.
Another way to look at this is the number of months’ worth of inventory we have in the Peoria real estate market. A balanced market is generally considered to be one in which there are 4 to 5 months of inventory, and a buyer’s market requires 6 or more months of inventory. In Peoria right now, we see somewhere between 0.7 to 2.8 months of inventory, clearly placing us in the seller’s market category.
After two years of almost unbelievable momentum, things may look different and have you wondering if your seller’s advantage is gone. The numbers show us this slight slowing is not even coming close to making it a buyers’ market. This means if you are considering selling your home, you remain in an excellent position to do so.
Another headline topic that may be giving your concern is home price reductions. After a couple of years of watching your neighbors sell their homes for prices you could hardly believe, it should come as no surprise that this momentum had to slow at some point. This doesn’t mean home are depreciating. The pace at which home values are increasing has slowed, but Peoria homeowners still have record amounts of equity and can expect to sell their homes for a great price.
As we step back a bit further to gain some perspective, we are seeing that today’s real estate market in Peoria is simply calming a bit, but it remains decidedly in the seller’s favor.
The Bottom Line
The bottom line is this: the market is changing and the strategy to have a successful home sale may require some subtle adjustments from what we saw this time last year. This doesn’t mean it’s a bad time to sell or that your house will sit on the market forever. We are still helping sellers take advantage of unprecedented amounts of home equity, leveraging their position of financial strength in this market to help launch them on to their next goals.