Are Real Estate Prices Dropping in Central Illinois? Here’s What You Need to Know
One of the most common questions buyers and sellers in Central Illinois are asking right now is: “Are real estate prices dropping?”
The short answer? It depends on your local market, your price range, and the type of property you’re looking at. Let’s break down what’s happening in Peoria, Tazewell, Woodford, and Knox Counties so you have the facts before making a move.
What’s Happening with Home Prices in Central Illinois?
While national headlines might talk about a housing slowdown, Central Illinois has been more stable than many parts of the country. Here’s why:
Balanced Market Conditions: Our area hasn’t seen the extreme price surges of big metro areas, so we’re not experiencing dramatic drops either.
Moderate Adjustments: Some homes that were priced aggressively in 2022 or 2023 may be seeing small price reductions, especially if they’re in higher price brackets or need updates.
Well-Priced Homes Still Sell Fast: Move-in-ready homes in desirable neighborhoods are still attracting multiple offers.
Are Prices Actually Falling?
Oak Run, Dahinda, IL: Lakefront properties remain strong, but buyers have more options than last year, which means pricing correctly is key.
Peoria & Surrounding Areas: Average sale prices are slightly down compared to peak pandemic years, but still higher than pre-2020 levels.
Morton, Dunlap, and Chillicothe: Demand for family-friendly neighborhoods remains solid, keeping prices steady.
What Buyers Should Know
If you’ve been waiting for a “market crash” to buy, you might be waiting a long time. While some listings have price adjustments, we’re not seeing steep discounts across the board. However:
You’ll likely have more negotiating power than you did in 2021-2022.
Interest rates play a big role—talk to a local lender about programs that can lower your monthly payment.
What Sellers Should Know
If you’re thinking about selling:
Pricing matters more than ever. Overpricing can cause your home to sit.
Homes that are updated and staged properly still sell quickly.
Working with a local agent who understands micro-markets like Oak Run, Dunlap, and Peoria neighborhoods is critical.
Bottom Line: Prices Aren’t Crashing, but Strategy Matters
The Central Illinois real estate market is stable, with minor corrections in some segments. If you want up-to-date market data for your neighborhood, or you’re curious about your home’s current value, reach out to us today.
📞 Contact The Heffron Group REALTORS® for your personalized home valuation or to learn more about buying and selling in Central Illinois.
