Housing Market Looks Promising

By Cyreia Sandlin

June 16, 2009

The economy showed a few slow signs of recovery in May, the biggest glimmer coming in the housing sector, with housing starts and permits up last month.

Peoria home sales have shown a steady increase thanks to the $8,00 tax credit for first time homebuyers.

The tax credit requires the 3.5% percent down payment before the $8,000 can come into play.

Although realtors were hoping for more from the tax credit, sales for the Peoria Area in May showed a fifth consecutive month increase.

Peoria Area Association of Realtors President Pat McCarthy says "This is probably one of the bigger month to month jumps going up twenty three percent from April to May this year, but the market had been down the first quarter of the year which we knew because of all the economic turmoil that was out there, so now we're seeing a rebound."

The median sale price in May for a house was $120,000 compared to $107,000 in April.