Recent data indicates a positive shift in the Peoria housing market, with a slight increase in sales during the final quarter of 2025 offering a glimmer of optimism for the year ahead. Despite a minor dip in overall annual sales compared to the previous year, the Peoria Area Association of Realtors (PAAR) president, Leslie Rothan, notes a stabilizing trend in home prices and a gradual increase in available inventory.
Key Takeaways
- Home sales in the Peoria area saw a modest increase in the fourth quarter of 2025.
- Inventory levels are slowly rising, providing more options for buyers.
- Home prices are becoming more stable, moving towards a balanced market.
- Peoria continues to attract buyers from larger cities due to its affordability and amenities.
Market Stabilization and Inventory Growth
Rothan expressed optimism, stating that the prolonged period of low supply in the Peoria region appears to be easing. "What we’re seeing is the home prices are becoming more stable," she said. "There’s more inventory that’s slowly coming onto the market, which is helpful because that gives buyers more options when it comes to what they can purchase."
This shift is moving the market closer to a healthy balance between buyers and sellers, with neither a significant pent-up demand nor a surplus of inventory. In 2025, a total of 6,325 homes were sold in the Peoria market, a slight decrease of 60 from the year prior. However, the fourth quarter saw 1,305 homes sold, an increase of seven compared to the same period in 2024.
The number of homes available for sale has also seen an encouraging rise. Approximately 740 homes were on the market during the fourth quarter of 2025, a notable increase from just under 600 two years ago. Rothan attributes this to potential sellers feeling more comfortable listing their homes as interest rates begin to adjust.
Affordability and Influx of Buyers
While the average sale price for a Peoria-area home rose by 6.5% in 2025 to around $201,300, Rothan emphasized that Peoria remains a comparatively affordable market. The region has attracted many "transplants" from larger cities like Chicago, St. Louis, and Indianapolis over the past five years, drawn by the significantly lower cost of living and greater value for money in real estate.
Peoria offers the amenities and attractions of a larger city, including diverse dining, shopping, and cultural institutions, without the associated high price tag. This combination of urban-like features and affordability continues to be a strong draw for new residents.
Addressing the Housing Crisis
PAAR is actively collaborating with city leaders and community organizations, providing real estate data to help address the ongoing housing crisis and the need for more affordable homes. Rothan acknowledged the varying definitions of "affordable" and stressed the importance of analyzing what affordability truly means within the local market.
Outlook for 2026
Early indicators for the first quarter of 2026 suggest a continuation of the positive trend, even with the typically slower winter sales period. Rothan noted that agents are reporting consistent activity, with many houses being listed and a high level of buyer interest in touring properties. This suggests a potentially robust start to the year for the Peoria housing market.
