Area home sales up in first quarter
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- Published on Wednesday, 20 April 2016 16:44
- Written by Paul Gordon
Home sales were up in the first quarter when compared with a year earlier and prices continued to rise, as well, according to the Peoria Area Association of Realtors.
There were 954 homes sold, including single family houses and condominiums, during the first quarter, an increase of 3.8 percent from the 919 closed sales during the first three months of 2015, the association said.
The median home sale price was up 6.4 percent to $110,675 from $104,000 from the first quarter of 2015. The average home sale price in the Peoria area was up 2.2 percent to $133,501, compared with $130,601 in the first quarter of 2015.
PAAR President Becky Peterson said with the weather getting better, sales should continue to be strong.
“We are in the heart of the selling season. Buyers have to make house hunting a priority and review listings regularly. It is not unusual in this market for listings to be here today and gone tomorrow as some receive a contract to purchase within the same day,” Peterson said.
“With temperatures warming up so is the pace of buyers who are out in the market shopping for a home and ready to make their move this year. We should see more competition for properties,” she said.
PAAR reported home sales activity was up 7.6 percent in March with 425 sales as compared to March of last year with 395 sales.
“Inventory is the primary need as we work our way into 2016. There are certain price ranges that could use a much needed boost in inventory levels in order to maintain a more balanced market and meet the demands for buyers,” said Peterson.
“The hottest price range that tends to sell the fastest falls between $125,000 and $175,000, which also tends to be a hot commodity item for first-time buyers as well. We can anticipate the 30-year fixed rate mortgage to remain very attractive through the spring/summer home buying season below 4 percent. Lower rates mean improved housing affordability for all buyers.”
According to Freddie Mac, the 30-year fixed rate mortgage averaged 3.58 percent for the week ending April 14, down from 3.67 percent a year ago. This is the lowest level for the year. The rate also represents the lowest mark since May 2013, according to Freddie Mac.
For the first quarter of 2016, there were 1,264 pending home sales reported, up 1.4 percent from 1,247 pending sales reported a year ago. Inventory of homes for sale was relatively even, up 0.4 percent to 2,506 listings in March compared to 2,497 listings on the market in March 2015. There were 2,386 listings on the market in February of this year.
March had 815 new listings, a 32 percent increase over February’s 618 new listings. The month’s supply of inventory dropped 3.6 percent to 5.4 months from 5.6 months in March 2015, indicating demand is increasing relative to supply.
It took less time to sell a home in the first quarter in the Peoria area; the average was 90 days versus 98 days in the same period in 2015.
“We are looking forward to a decent year for real estate. New home construction is picking up making way for more housing inventory. Renters are finding this market is affording them the opportunity to make an investment in their future to purchase a property of their own instead of paying someone else’s mortgage,” said Peterson.
“The second quarter tends to rank as the best time to list a home for sale, and for sellers this also offers an opportunity for them to make a move to their dream home. Sellers who act quickly to get their home listed will benefit from more exposure to buyers but overpricing in this market means it may take longer to sell,” she said.
PEORIA AREA ASSOCIATION OF REALTORS®
1st QUARTER HOME SALES, AVERAGE & MEDIAN SALES PRICES
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