Peoria IL Housing Market Update: Prices Up, Rates Dip Below 6%
Peoria, IL – February 27, 2026 – Home prices are trending higher, inventory remains active, and mortgage rates dipping below 6% may add a small tailwind heading into spring.
Top takeaways
- Redfin shows a median closed-sale price of about $139K in January, up 8.2% year over year.
- Zillow reports a typical home value near $127K and 376 homes listed for sale at the end of January.
- Freddie Mac put the 30-year fixed average at 5.98% this week, which may slightly improve affordability versus higher-rate periods.
- The Planning & Zoning Commission calendar is a practical place to watch for rezonings and potential new subdivisions.
Prices, sales pace, and inventory
Recent dashboards point to a market where prices are holding firmer than last year while buyers still have options. In January 2026, Redfin recorded 112 homes sold, with listings averaging about 40 days on market. That combination can signal a market that is still moving, even if buyers are taking time to compare homes and negotiate.
On the valuation side, Zillow’s typical home value sits around $127K. For context on pricing, Zillow also shows a median sale price near $121K (Dec. 2025) and a median list price near $120K (Jan. 2026). Inventory appears active as well, with 376 homes listed for sale at the end of January.
Mortgage rates: a small tailwind
Borrowing costs remain a key swing factor for demand. Freddie Mac’s weekly reading placed the average 30-year fixed rate at 5.98%. If rates stay near this level, some buyers who were waiting for better financing conditions may be more willing to schedule showings and write offers, particularly as the market transitions toward spring activity.
Rentals and development watch
For renters, Zillow reports average asking rent around $1,160 (Jan. 2026), with year-over-year rent growth in the mid-single digits.
On the development side, the Planning & Zoning Commission meets monthly (typically the first Thursday). Meeting agendas and minutes can provide early signals on rezonings, larger proposed projects, and subdivision-related items.