Realtors: Tight Inventory Driving Up Home Prices in Bloomington-Normal | WGLT

Realtors: Tight Inventory Driving Up Home Prices in Bloomington-Normal

Nov 1, 2017

A low number of homes on the market is helping to drive up prices in Bloomington-Normal real estate, even as the demand for newly built homes continues to lag.

There were 259 homes sold in September, up 7 percent from the 242 sold during that month last year, the Bloomington-Normal Association of Realtors reported Wednesday. Total sales for 2017 are down less than 1 percent through nine months versus 2016. October stats were not available, BNAR said.

BNAR noted that low inventory in the existing-home market has helped drive up the average price of a sold home to $170,989, up around 4.8 percent over 2016.

“This is a gain in property values that we haven't seen in our (area) for many years,” said BNAR President John Armstrong. “This gain is primarily caused by the low inventory we have had all year. Basic economics tell us low inventory with good buyer activity will make prices go up. This is good for those local ‘move up’ buyers that now have more equity in their current home.”

Sales of newly built homes continue to dip. They’re down 14.5 percent so far in 2017.

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