PEORIA — An unexpected bump in fourth-quarter home sales lifted figures for the full year into positive territory, indicating a stable residential real estate market for the Peoria area.
The total 2017 tally — 5,472 transactions, compared to 5,459 in 2016 — represented only a 0.2 percent increase, but it was remarkable nonetheless because big business news early in the year brought unpredictable influence to the market.
The decision to move the headquarters of Caterpillar Inc. out of the Peoria area injected ambiguity into the real estate market and factored into the decisions of almost everyone buying a home, according to Dallas Hancock, CEO of the Peoria Area Association of Realtors.
"With some of the uncertainty last year, we think stability is great," Hancock said. "We are seeing consumer confidence coming back up."
That confidence took the form of a 10.3 percent increase in home sales in the fourth quarter compared to the same term the previous year — 123 more homes sold in the last three months of 2017 than the 1,193 sales recorded in the same period of 2016.
A real estate incentive program introduced by Caterpillar to help sustain the local market did have an influence, though the volume of sales in that program was relatively small, said PAAR President Mary Ann Ladendorf.
Out of the 5,472 homes sold all year, only 132 were in Caterpillar's relocation program and eligible for a range of incentives, beginning with a reimbursement of up to 3 percent. Ninety homes currently on the market are eligible for the incentives.
"It got people in the market, even if they didn't buy a home as part of the program," Ladendorf said. "Some sellers were not happy competing against these houses, but it did bring buyers to market."
Other factors with a positive influence on home sales included historically low interest rates, declining unemployment and the recent announcement that OSF HealthCare will develop the Downtown parcels where Caterpillar had planned to expand for its own ministry headquarters.
"Our medical community keeps our economy strong in central Illinois. It's broader than just Peoria — it keeps vitality in the entire region," Ladendorf said. "Declining unemployment, consumer confidence and a growing economy — all signs point to good things in 2018."
Matt Buedel can be reached at 686-3154 or mbuedel@pjstar.com. Follow him on Twitter @JournoBuedel.