Peoria market update: October 13, 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. The attached-home market, the condos and townhomes, is a smaller slice: only 8 attached homes closed in September, a very-low-volume month, with a median of $114,950 that swings on a small sample. And the regional snapshot from the Peoria Area Association of REALTORS, effective September 30, points the same direction: 685 new listings, 514 closed sales, 39 average days on market, a $179,900 average sales price, and 1,092 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.

What is genuinely new since the last briefing: two fresh corroborating reads

The first is the Hometown Register's mid-year housing market review, built on Redfin data for the Peoria metro across January through June 2026: a median sale price of about $170,703, up 8.0% year over year, an average of 26.1 days on market, and active listings up 4.1% year over year, with the review describing the market as showing signs of unwinding from the pandemic-era frenzy while still scoring very competitive at 84 out of 100 and selling homes at about 97.75% of asking. That is the same story the county report tells: values still up on the year, pace slower than the peak, and inventory slowly rebuilding. The second is Scott Rodgers Real Estate's Peoria Housing Market Update through August, which counts about 223 homes for sale in August, 1,345 new listings year-to-date, and roughly 1.7 to 1.8 months of supply, a hair looser than the county's 1.5-month September read but the same message: still tight, still a seller's market, just a more measured one than two years ago.

Where mortgage rates stand, and what to watch Thursday

Freddie Mac's survey released October 8, 2026 put the average 30-year fixed-rate mortgage at 7.40%, up from 7.28% the week before and 6.30% a year earlier, with the 15-year averaging 6.73%, up from 6.60% a week earlier and 5.53% a year ago. It was the seventh consecutive weekly increase and the highest average since November 2023, after the 30-year crossed back above 7% in the week of September 24. As of this review, the October 8 survey is the most recent confirmed weekly reading, and the next survey is scheduled for Thursday, October 15, just two days away. My framing has not changed either: a run like this makes the payment comparison more important, not less, and the decision number remains today's actual payment at today's price, compared against renting while you wait. I will post the moment the new survey lands.

ZIP-level: 61615 versus 61614

The question I hear most often is still whether 61615 is more expensive than 61614, and the answer is still yes. Zillow puts the typical home value in 61615 at about $258,298, up 7.5% year over year, with homes going pending in about four days, which tells you how fast that north Peoria pocket still moves; RealtyTrac shows a median sales price of about $240,000 for the ZIP. In 61614, RealtyTrac's fresh September reads show the median sold price rising from about $203,400 a year earlier to about $210,100, up 3.3%, with the median listing price at about $250,000 and active listings roughly doubling to roughly 475 homes. Both areas are active, 61615 carries the premium and the pace, and the homes that linger in either ZIP, 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, and Niche putting the median home value closer to $289,600. What is worth watching there is the supply side: local broker tracking counts just 36 homes in standing inventory across the Dunlap High School District, while sales 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. That is not a weak market, it is a normalizing one, and in a district with that little inventory, 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.

Is the Peoria housing market slowing down?

Yes in pace, no in price, and now the evidence comes from five directions instead of one. Cumulative days on market stretched to 25 days over the past year, September single-family closings rose 6.7% year over year, the regional snapshot shows 39 average days on market, Redfin's county read shows homes selling after roughly 15 days on its three-month measure, and the mid-year review puts the metro at 26.1 days with active listings up 4.1%. But slowing pace is not falling prices: the countywide median is down just 1.4% year over year, the mid-year metro median is up 8.0%, 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. The next real test is Thursday, October 15, when Freddie Mac publishes its next weekly survey after seven straight increases, and I will report it the day it lands. 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. The seven-week rate run is the new wrinkle, and it makes the loan comparison more valuable, not less, because financing terms are where the savings are found. 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 September 30, 2026, covering Peoria, Tazewell, Fulton, Hancock, McDonough, Schuyler, Woodford, Marshall, McLean, and Mason counties; the Hometown Register's mid-year Peoria housing market review of Redfin data for January through June 2026 (metro median sale price about $170,703, up 8.0% year over year; 26.1 average days on market; active listings up 4.1%; homes selling at about 97.75% of asking; Redfin competitiveness score 84 of 100); Scott Rodgers Real Estate's Peoria Housing Market Update through August 2026 (about 223 homes for sale in August, 1,345 new listings year-to-date, roughly 1.7 to 1.8 months of supply); Redfin's Peoria housing market page (city median near $148,000, up 2.0% year over year on the three-month measure, county median near $179,000, up 8.8%); Zillow Home Value Index data updated July 31, 2026 for Peoria ZIP 61615 and Dunlap; RealtyTrac market trends for Peoria ZIPs 61615 and 61614; Niche median home value data for Dunlap; local broker tracking of Dunlap High School District sales and inventory (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 8, 2026, the seventh consecutive weekly increase and the highest average since November 2023, with the next survey scheduled for Thursday, October 15. All reviewed October 13, 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