Peoria market update: mid-October 2026.

The county numbers that still stand

Peoria County's September Local Market Update, from RMLS Alliance data current as of October 5, is the deepest county-level read: a median sale price of $175,000, down 1.4% from $175,500 a year ago; a year-to-date median of $175,000, up 7.0%; 208 single-family detached closings, up 6.7%; 290 homes in inventory at 1.5 months of supply, down 4.6% year over year; cumulative days on market of 25, up 47.1% from a year earlier; and sellers receiving 96.5% of original list price. And the regional snapshot from the Peoria Area Association of REALTORS, effective August 30, still points the same direction: 664 new listings, 577 closed sales, 32 average days on market, a $180,000 average sales price, and 1,035 homes in inventory across the ten-county Greater Peoria MLS area. Active but settling, with inventory climbing from the extremely thin levels of a year ago.

ZIP-level: 61615 versus 61614

The question I hear most often is whether 61615 is more expensive than 61614, and the answer is still yes, with the gap showing up in the latest valuation data. Zillow put the typical home value in 61615 at about $258,298, up 7.5% year over year, with homes going pending in roughly four days, which tells you how fast that north Peoria pocket still moves. 61614 sits at a lower price point: RealtyTrac's median estimated value is around $199,900, with a median sales price near $207,279. Both are active, but 61615 carries the premium and the pace, and the homes that linger there, like everywhere, are the ones priced above what the evidence supports.

What is happening in Dunlap

Dunlap remains the standout suburban market in Peoria County, with a typical home value around $278,642, up 1.8% year over year on Zillow's measure, well above the county median. What is worth watching there is the pace: sales in the Dunlap High School District have stepped down from 146 in 2023 to 125 in 2024 to 109 in 2025, and about 100 sales year-to-date through May 2026, per local broker tracking. That is not a weak market, it is a normalizing one, and in a district where standing inventory is thin, the well-priced family home still draws competition while the overpriced one sits. Buyers should expect to move on the right house, and sellers should still price to the evidence from day one.

Where mortgage rates stand

Freddie Mac's survey released October 1, 2026 put the average 30-year fixed-rate mortgage at 7.28%, up from 7.03% the week before and about 6.34% a year earlier, with the 15-year averaging 6.60%. Daily trackers have run higher since: Bankrate's national survey showed 7.38% for the week of October 1 and 7.55% as of October 6. It is the second consecutive week the weekly 30-year average has held above 7%. The next weekly survey was scheduled for Thursday, October 8 but had not yet been published when I checked, and I will watch it the way I always do: a wandering few hundredths is not a trend, and the decision number remains today's actual payment at today's price, compared against renting while you wait.

Is the Peoria housing market slowing down?

Yes in pace, no in price, and the evidence keeps agreeing. Cumulative days on market stretched to 25 days over the past year, September single-family closings rose 6.7% year over year, and the regional snapshot shows 32 average days on market with more homes to choose from. But slowing pace is not falling prices: the countywide median is down just 1.4% year over year, the year-to-date median is up 7.0%, and inventory sits at just 1.5 months of supply, far short of the six months that marks a balanced market. Sellers still hold most of the cards; buyers just have more choices and more room to negotiate than they did a year ago.

Do Peoria buyers have more negotiating power right now?

More than last year, yes, and the cooling data is what gives it to them. With more homes to choose from, homes taking longer to sell, and roughly three in ten listings taking a price cut at some point, prepared buyers are negotiating price, seller-paid closing costs, repair credits, and even rate buydowns on the homes priced above their evidence. At the same time, the well-priced home in a desirable neighborhood still draws multiple offers, because inventory is that thin. What changes the whole conversation is arrival: a buyer who walks in pre-approved, with a clear picture of their payment and a clear walk-away number, has leverage in this market that a buyer waiting on the sidelines simply does not.

Is renting still cheaper than buying in Peoria?

The honest answer is still no, buying remains the cheaper monthly move in Peoria, one of only a few dozen U.S. cities where that is true. The Construction Coverage analysis reported by the Peoria Journal Star compared a median monthly mortgage payment of about $990 against a median monthly rent of about $1,133, making buying roughly 12.6% cheaper and ranking Peoria the second most affordable small city in the country for home buyers. Published rental listings from sources like Zumper and Redfin run lower, around $893 to $1,000 a month depending on the source, but rents here have been climbing while a fixed-rate mortgage payment stays put. The honest caveat is the one I always give: taxes, insurance, and maintenance are on you as an owner, so the comparison is rent versus a payment that builds equity, and for qualified first-time buyers IHDA down payment assistance can close the down payment gap.

Should Peoria buyers wait for mortgage rates to drop?

Nobody can reliably predict where rates go next, and anyone who tells you they know is selling something. What is knowable is the other side of the ledger: Peoria County home values held roughly flat year over year, and on a median-priced home a rate cut of half a point is roughly offset by a $10,000 to $15,000 rise in price. My standing advice has not changed: compare today's actual payment at today's price against renting while you wait, decide from math and life plans, not from a headline, and let your lender and me put the real numbers in front of you before you choose.

What this means for your move

For buyers, nothing about the fundamentals has changed: thin inventory in the county, steady values, and rates above 7% mean the prepared buyer holds the leverage on the listings that sit, and the right home can still be claimed quickly. For sellers, 96.5% of list price received says it plainly: accurate pricing from day one is the single strongest negotiation you will make, because the homes that linger in this market are almost always priced above what the evidence supports.

Call or text me at 309-361-4592, or send a note through the contact page, and we will run this comparison for your neighborhood, your ZIP code, your budget, and your timeline. I want you to understand your position before you decide anything, because your move matters.

Sources: Peoria County Local Market Update, RMLS Alliance data for single-family detached homes, current as of October 5, 2026 (and the September 2026 Peoria County market report); the Peoria Area Association of REALTORS 309MLS market snapshot effective August 30, 2026, covering Peoria, Tazewell, Fulton, Hancock, McDonough, Schuyler, Woodford, Marshall, McLean, and Mason counties; Zillow Home Value Index data updated July 31, 2026 for Peoria ZIP 61615 and Dunlap; RealtyTrac market trends for Peoria ZIPs 61615 and 61614; local broker tracking of Dunlap High School District sales (Scott Rodgers Real Estate); the Construction Coverage buying-versus-renting analysis as reported by the Peoria Journal Star; and the Freddie Mac Primary Mortgage Market Survey of October 1, 2026, with Bankrate's national survey for the week of October 1 and October 6, 2026. All reviewed October 8, 2026. Figures are directional and change weekly. Your neighborhood's numbers come from current listings and closed sales, which I am happy to pull for you directly.

Want your number, not the county's?

Every buyer I represent starts with a real buyer consultation, no exceptions, because I want you to understand your position and I never want you to feel pressured. Reach me at 309-361-4592 or through the contact page, and we will map your move to the numbers that actually apply to you.

With gratitude,

Teri Shepherd · Broker Associate · REALTOR® · IL 475.135244 · Keller Williams Premier Realty, Peoria